VBSP aims to provide US$1.8 billion to southwestern region in 2030

The Vietnam Bank for Social Policies (VBSP) aims to offer VND41 trillion (US$1.8 billion) of loans to the southwest region in 2030, up VND13 trillion (US$571 million), or 46 percent, compared to 2016, with average credit growth of 10 percent each year.

vbsp aims to provide us$1.8 billion to southwestern region in 2030 hinh 0
The bank will strive keep overdue debts below 1 percent of total outstanding balance and unpaid interest to fall at least 15 percent each year.

VBSP General Director Duong Quyet Thang said that the bank will continue following the directions of the Party, Government, the Steering Committee for Southwest Region, ministries and regional localities in designing credit policies for the region.

Vice Governor of the State Bank of Vietnam Dao Minh Tu said that the State bank will work with agencies to give a more complete legal framework for the bank’s operation, while continue to seek capital resources for the bank.

The State Bank of Vietnam will also monitor VBSP credit programmes to ensure their quality and effectiveness in reducing poverty and ensuring social welfare in the region.

Last year, VBSP’s total outstanding balance in the southwestern region reached more than VND27.83 trillion (US$1.22 billion), benefiting more than 2.06 million poor residents and policy beneficiaries, VND10.91 trillion (US$479 million) higher than that of 2011, with an average increase of 10.5 percent in the 2012-2016 period compared to 1.8 percent of the country’s average credit growth.