On November 26, 2021, the Prime Minister issued Decision No. 1990/QD-TTg on reducing lending rates for social policy credit programs at the Bank for Social Policy. Decision No. 1990/QD-TTg takes effect from October 1, 2021 to December 31, 2021.
Specifically, the interest rate reduction is 10% compared to the interest rate for lending policy credit programs. The Bank for Social Policy strengthens measures to balance operating costs to implement the reduction of lending interest rates within the scope of the capital plan to compensate for interest rate differences and management fees assigned in 2021.
The time to reduce lending interest rates for policy credit programs applicable to outstanding loans at the Bank for Social Policies is from October 1, 2021, to the end of December 31, 2021.
After December 31, 2021, the lending interest rates of policy credit programs at the Bank for Social Policies shall comply with the current regulations of the Prime Minister.
According to the Bank for Social Policies, by October 31, 2021, the total policy credit capital reached VND 259,902 billion, an increase of VND 21,528 billion compared to 2020.
Total outstanding debt by October 31, 2021, reached VND 243,191 billion, an increase of VND16,994 billion (equivalent to an increase of 7.5%) compared to the end of 2020, with nearly 6.4 million poor households and other policy beneficiaries owed.
In particular, the outstanding debt entrusted through socio-political organizations reached VND 241,503 billion, accounting for 99.31% of the total outstanding debt, an increase of VND16,419 billion compared to 2020.
Specifically, the outstanding debt entrusted through the Women's Union reached VND 92,724 billion, accounting for 38.40% of the total entrusted debt; The Farmers' Union reached VND 73,273 billion, accounting for 30.34% of the total entrusted debt; The Veterans Association reached VND 41,015 billion, accounting for 16.98% of the total trust balance; The Youth Union reached VND 34,491 billion, accounting for 14.28% of the total trust balance.
By October 31, 2021, the ratio of overdue and folded debt accounted for 0.72% of the total outstanding debt.
Source
Chi Tin