A co-operative in Hải Ninh Commune, Quảng Ninh District in the central province of Quảng Bình with funds borrowed from the district Bank for Social Policy offers work to poor people in the area. 

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

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

It is estimated a total of VNĐ16.2 trillion (US$685 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.

The VBSP also proposed 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.

Nguyễn Đức Hải, deputy general director of the VBSP, said most people borrowing money at the bank were poor, or families who made great contributions for 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 more than VNĐ1.3 trillion ($55 million) impacted.