HCM CITY (VNS)— The Government has agreed to earmark an additional VND2.5 trillion (US$119 million) to the Viet Nam Bank for Social Policies to ensure there are enough funds for loans to poor university students in the upcoming academic year.
|Parents apply for loans from the Viet Nam Bank for Social Policies to pay for their children's education in northern Thanh Hoa Province's Quang Khe Commune. — VNA/VNS Photo Tran Viet
Nguyen Van Ly, the bank's deputy head, said the bank was distributing money to provinces and cities for lending to poor students. But there could be a shortage of funds, he admitted.
The money for the programme comes from three sources – the Government, issue of bonds guaranteed by the Government, and internal sources.
By July it had collected debts worth VND1.8 trillion ($85.7 million) from beneficiaries, according to Ly.
But because of the economic downturn, it has not tried to sell bonds in recent times.
To ensure a stable source of funds for the programme, the bank wants the Government to allot a portion of the official development assistance the country gets, which are long-term loans at low interest rates.
A student is entitled to a loan of VND1 million per month at 0.65 per cent interest. — VNS