By June 1st, the first largest loans ever are offered to borrowers in fields of household business and agriculture-forestry-fishery production. The loans are credits not ensured by assets varying from VND 50 million up to VND 500 million depending on who the borrowers are. The loans offered are part of credit policies proposed by State Bank of Vietnam to promote agricultural and rural development. Binh Duong Newspaper reporter interviewed Mr. Nguyen Phu Cuong who is now Deputy Director of Binh Duong Branch of State Bank.
- Could you please point out significant difference of Decree No. 41 from Decision No. 67?
- Banking credit is an important tool being used by the Party and State to promote agriculture – the traditional sector of our country. Decision No. 67 of government’s Prime Minister has yielded fruits by offering banking credit policies to enable credit flow into agriculture, contributing to active economic structure transition, poverty reduction, social security and higher living standard. However, during the time of implementation, Decision No. 67 emerged to be in need of reforms and supplementation. By April 12th 2010, the government issued Decree No. 41/2010/ND-CP on credit policies replacing Decision No. 67 and resolved shortcomings of the decision after 10 years.
- How have those policies been launched?
- By the end of July, we have organized summary meeting to review Decision No. 67 and to deploy Decree No. 41 which along with Circular No. 14 will help us to plan oriented, clear-cut and accessible procedures for credit mobilizing. Credit institutions will diversify capital mobilizing and allocation of loans to agriculture sector as well as development of transactional offices in remote areas. The State Bank will consult with local People’s Committee to deploy those transactional offices. In the meantime, the bank will inspect the implementation of Decree No. 41 to prevent breaching along with removing obstacles for better implementation.
- What measures are detailed to enable capital source to flow to right borrowers in the right time?
- Under socio-economic development plan in 2006-2010 period and upcoming years, Binh Duong Branch of State Bank proposed to achieve 18% of total credit balance in the whole region, promoting full capital for disbursement to credit contracts. The credit program will start up from 2010 to 2015 and balance allocation with applied interest rates. Local credit institutions will balance and continue to adjust interest rates descendingly while inspection is ensured.
- Thank you!
Interviewed by Thanh Hong – Translated by Vi Bao
