The Vietnam Bank for Social Policy (VBSP) has proposed cutting the loan interest rate for poor households by 15% from April 1 until the end of the year.

A cooperative in Hai Ninh commune, Quang Ninh district in the central province
of Quang Binh with funds borrowed from the district Bank for Social Policy offers
work to poor people in the area. (Photo: VNA)

Under the proposal, families who made a great contribution to the nation will also receive a reduction of 10%.

The bank also proposed that employers can borrow money at the bank with no interest for a year to pay employees who must cease working for three months due to the pandemic.

It is estimated a total of VND16.2 trillion (US$688 million) will be borrowed and 3 million workers will benefit from the programme.

In recent days, relevant ministries and the VBSP have been completing the Government’s draft resolution about supporting residents in coping with COVID-19 pandemic.

VBSP Deputy General Director Nguyen Duc Hai said most people borrowing money at the bank were poor, or families who made great contributions to the nation.

He said the bank had implemented different supportive measures such as extending their debt payment, lending them more money for manufacture restoring and giving them guidance to make reports on their struggles.

More than 40,000 people have had their debt payment period extended, with total loans worth over VND1.39 trillion (US$59 million).