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Government to fund poor students' loans

Update: September, 11/2012 - 10:17

 

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
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.

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

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