Almost half of the funding will be allocated to poor families, another one-third to business families in difficult circumstances, and the rest to other social welfare-related programmes, including rural safe water supply, environmental hygiene, housing purchase and labour exports.

This year's credit budget for the poor will make increase by 16 percent against 2006, said the bank's Deputy General Director Le Hong Phong.

He added that the bank will send its staff to conduct feasibility studies into any projects valued at over VND30 million. The loans worth below VND30 million will need guarantees from social or political organizations.

This ambitious credit programme is the first of its kind launched by the bank.

By the end of 2006, the Social Welfare Bank disbursed over VND24 trillion for loans with overdue debts, down 2.28 percent compared to the 2005 figure. Its main clients were poor families, students and those subject to rural credit policies.