The fund is expected to meet 65% of capital needs for vulnerable people to help them resume production and services.
Hanoi plans to inject VND650 billion (US$28 million) in trust fund via the Vietnam Bank of Social Policies (VBSP) – Hanoi branch so that the lender could provide preferential loans for the poor, social beneficiaries and small businesses affected by the Covid-19 pandemic.
The amount is expected to meet 65% of capital needs for vulnerable people and businesses to help them resume production and services and mitigate negative impacts of the pandemic, thus ensuring social security.
The Hanoi People’s Committee requested the VBSP – Hanoi branch to quickly disburse the fund to beneficiaries in an efficient, timely and transparent manner.
Those that are entitled to receiving loans from the trust fund include poor, near-poor households, social beneficiaries, cooperatives, small and medium enterprises, while the fund would prioritize enterprises operating in fields affected by the pandemic, agricultural production, and essential services.
A report from the VBSP – Hanoi branch indicated severe impacts from the African swine fever, bird flu and Covid-19 pandemic on lives of the poor and social beneficiaries in the city.
It is estimated over 25,000 customers would need new loans worth VND1 trillion (US$42.91 million) to cope with the Covid-19 pandemic, while nearly VND412 billion (US$17.68 million) in debt has not been recovered as a result of the current crisis.
According to the VBSP, customers who are small businesses in the fields of services, healthcare and transportation are the hardest hit. This group recorded a combined outstanding loan of VND2.38 trillion (US$102.14 million), or 28% of the total.