Priority for social housing credit will be given to low-income State employees, defence personnel and the urban poor, Nguyễn Văn Lý, Deputy General Director of the Vietnam Bank for Social Policies, tells Lao Động (Labour).

Now that the previous VNĐ30 trillion package for social housing has ended, can you tell us how much the next one will be?

Counting some designated sources of capital and localities’ contributions, the credit expansion assigned and recovery of debts, the total credit package for social housing is expected to reach VNĐ58.3 trillion ($2.6 billion), larger than in previous years, and an estimated increase of VNĐ5.1 trillion over 2016.

For this year, VBSP is well prepared to provide social housing loans. We are just waiting for Government approval.

It is a difficult task to fully serve poor households, near-poor households and those eligible for State preferential treatment.

Thus, this year, VBSP will stay focused on utilising capital sources from commune-based transaction points to general capital for other sources, creating a new channel of capital mobilisation.

The capital mobilisation will be implemented first and foremost in areas where local people have high incomes. In mountainous and remote areas, deposits can be collected at home.

Our bank will work with local Party Committees and social organisations and unions to effectively rotate credit and recover debt for new sources of capital, facilitating the clearance of Government debt.

Priority will be given to poor households, near-poor households and families that have recently escaped from poverty; areas with high percentage of underprivileged households and areas hit hard by natural disasters.

Once the credit package is available, how can the needy access loans?

The social housing programme is a key part of national social security, which is a large-scale programme though we still do not have enough funds for it.

We have studied relevant issues and collected opinions from ministries, departments and sectors for issuing detailed guidelines.

Everybody is eligible for the social housing credit. However, Government resources are limited, so VBSP will prioritise loans for State employees whose earnings are below the minimum-level for income tax purposes, defence personnel, and the urban poor.

(The credit package is for individuals who do not own a property/house or those whose house has less than 8sq.m per person. Investors in social housing are also eligible for loans after their financial capacity is strictly assessed by the banks.)

We will co-ordinate with local administrations and socio-political organisations to implement procedures necessary to choose the right persons for granting loans. All the procedures will be conducted publicly and quickly.

What is the different between credit VBSP’s credit package from those offered by other commercial banks?

VBSP only grants the credit for social housing projects which are already approved by the Ministry of Construction.

How will the public know when the credit package will be available?

As soon as the Government gives the green light, VBSP will organise a press conference to publicise the loan package on mass media and the Government information e-portal.

The information will also be made known to localities, particularly communes and townships nation-wide. Potential beneficiaries will certainly have access to the information. — VNS