The Prime Minister has issued a decision on the implementation of policies to support people having difficulties caused by the Covid-19. It stipulates that State Bank of Vietnam refinances Social Policy Bank in order to lend loans to employers to pay salary for work suspension. Binh Duong Newspaper had an interview with Vo Van Duc, Director of Social Policy Bank - Binh Duong Branch.
Customers conduct transactions at Social Policy Bank - Binh Duong Branch.
- Sir, according to regulations, which employers are eligible for preferential loans from Social Policy Bank?
- According to Article 13 of the Prime Minister's Decision No. 15/2020 / QD-TTg of April 24th 2020, on the implementation of policies to support people in difficulties due to the Covid-19 pandemic, the loan conditions are as follows: At least 20% total employees or 30 employees who participate in compulsory social insurance and have to stop their work for 1 month or more; paid at least 50% of termination salary for the employee in period from April 1st 2020 to the end of June 30th 2020. Being in financial difficulties, unable to balance the sources to pay workers to stop working, the salary reserve fund has been used to pay workers to stop working. There were no bad debts at credit institutions, foreign bank branches as of December 31st 2019.
- According to regulations, how many eligible employers in Binh Duong are supported to borrow this loan, and how is the procedure for loan certification, approval and disbursement, sir?
- According to the data of provincial Department of Labor - Invalids and Social Affairs, Binh Duong currently has about 30,000 employees that have to stop working in April 2020. The number of eligible employers for borrowing loans from this fund depends on dossiers prepared by the employers and is approved by Provincial People's Committee in accordance with the Decision No. 15/2020/QD-TTg of the Government.
Regarding dossiers, the process of lending and disbursement of Social Policy Bank are as follows: List of employers who are eligible to borrow loans of salary payment for work suspension, List of employees who have to stop working; the lists must be approved by Chairman of Provincial People's Committee. The lists are received by Social Policy Bank from provincial People's Committee. In addition, customers set up dossiers, including: Loan application form according to Form No. 01A / TLNV (for enterprises, agencies, organizations, cooperatives and business households) or Form No. 01B / TLNV (for individuals) enclosed with this document.
Certified copy of identity card, or valid citizen ID card, or passport of the borrower or the borrower's legal representative. Certified copy of appointment document or appointing the head of the legal entity in accordance with organization charters or decisions of the competent State agencies. Documents (in case of authorization) of the legal representative authorized by legal entity or documents of the member authorized by business household to participate in establishing transactions with Social Policy Bank. The authorization documents must specify the categories of authorization on: The loan amount, purpose of the loan, loan term, loan agreement, and commitments to repayment.
The subsequent loan documents include: List of employers who are eligible to borrow loans of salary payment for work suspension, List of employees who have to stop working; the lists must be approved by Chairman of Provincial People's Committee. The lists are received by Social Policy Bank from provincial People's Committee. Customers set up dossiers, including: Loan application form according to Form No. 01A / TLNV or Form No. 01B / TLNV. Supplement the documents mentioned in point b - 10.1 if there is any change compared to the first loan application.
After receiving all documents, Social Policy Bank will make a notice of loan document reception. Within 3 working days from the date of receiving the complete loan application and approval decision of Provincial People's Committee Chairman, Social Policy Bank will send the result whether loan approval or refusal (in case of ineligibility) to customers. If the customer is eligible for a loan: Social Policy Bank and customer negotiate, set up credit contracts, and sign appendixes of credit contracts for the next loans (if any). Disbursing and paying workers to stop working. The disbursement can be paid by bank transfer or cash. Social Policy Bank does not charge a fee for money transfer accounting to disburse loans to customers and pay to employees.
- Sir, which are loan interest rates and loan terms are applied?
- The loan amount is no more than 50% of the regional minimum wage / person / month, maximum for 3 months (from April to the end of June 2020). Loan interest rate is 0%/year. Interest rate of overdue debts is 12%/year. Loan term is agreed by Social Policy Bank and borrower but must not exceed 12 months.
- So far, how Social Policy Bank - Binh Duong Branch has implemented this policy and what are the advantages and difficulties, sir?
- To promptly implement this credit policy to beneficiaries, the Central Social Policy Bank issued Instruction No. 2129 / HD-NHCS dated April 27th 2020 and organized trainings for units. Currently, all officials and employees of our unit are ready to serve the loan needs of customers. Regarding the current difficulty, the collection of actual demand data (for enterprises, agencies, organizations, cooperatives, business households) or (for individuals) prepares procedures for loan registration at Social Policy Bank to make a plan for using this fund and report to the superiors to prepare for the disbursement.
- Thank you Sir!
Reported by Tuong Vy - Translated by Ngoc Huynh
