The Prime Minister has signed off on a decision approving the Viet Nam Bank for Social Policies' development strategies for 2011-20 period, calling the bank a vital tool to reduce poverty. The strategies are meant to facilitate implementation of socio-economic development plans, poverty reduction programs, and a national program to develop a new rural model by 2020. The bank plans to provide loans on easy terms to all poor families as well as other beneficiary groups that are eligible, with priority given to ethnic minorities living in disadvantaged areas. It targets an annual outstanding loan growth rate of 10% but hopes to keep bad debts to less than 3%. Simplifying administrative procedures and improving its operations and management are also among the tasks on the agenda during the period. As of the end of May 2012, the bank's total outstanding loans were VND107.2 trillion ($5.1 million), representing year-on-year annual growth of 34%. The average outstanding loan per beneficiary increased to VND8.9 million from VND2.5 million in 2003. More than 11.4 poor households have benefited so far. (Vietnam News July 16)
