Farmers complain about black credit problems, Deputy Governor says it has decreased 'halved'

Responding to a question from farmer Tran Thi Thanh Thoan, Duy Tien district, Ha Nam province, at the Prime Minister's Dialogue with farmers on May 29 in Son La province, about the issue of people having difficulty accessing credit with farmers with preferential interest rates, making black credit still have room to survive, Deputy Governor of the State Bank Dao Minh Tu suggested solutions to improve the capital supply.

According to Mr. Tu, since 2017, the State Bank has issued many policies to limit black credit, such as: Completing the legal framework on lending activities; Promoting the application of science and technology, developing online services; Expanding and diversifying banking products and services; Reducing interest rates, simplifying loan procedures...

"Compared to 2017, black credit has decreased by more than half. To clarify the reasons for reducing black credit, Deputy Minister of Public Security Le Quoc Hung said that police have opened many peaks to break the black credit group, and catch and handle many objects.

From the point of view of finding out and handling it, if the case reaches the level of criminal prosecution, then collect enough documents to handle it seriously, the Ministry of Public Security has strengthened the prevention and fight against crimes and violations of black credit-related law; help people avoid being taken advantage of by criminal groups.

Currently, the Ministry of Public Security continues to direct local police to coordinate with the banking industry and localities to promptly grasp the situation of sophisticated activities of black credit criminals.

"The Ministry of Public Security has reinforced more than 50,000 police officers and officers to work as commune police officers, coordinating with local authorities to manage black credit and high-tech crimes. We need to prevent this problem right from the beginning", emphasized Mr. Hung.

In order to prevent black credit, Mr. Hung said that there must be the involvement of authorities at all levels, the people and the police. For example, local authorities must coordinate with functional agencies to determine the purpose of unsecured credit, and assist banks in both lending and capital recovery.

On the side of farmer households, Mr. Hung suggested building a clear, feasible and effective project, so that banks could more easily accept loans.

"Currently we have a population database, there is a connection between the bank and the police. We will move forward, when a borrower borrows, the bank will immediately know the relative through the database, save the actual verification stage," said Mr. Hung.

In the past two years, Vietnam has been heavily affected by Covid-19. The National Assembly and the Government have issued and implemented many policies to reduce difficulties, including the policy of socio-economic recovery after the Covid-19 epidemic. This is an opportunity for people, especially agricultural people, to have more opportunities to access capital with interest rates and preferential procedures.

By the end of April 2022, outstanding consumer loans reached over VND 2.26 million billion, accounting for over 20% of the economy's outstanding loans, an increase of 8.93% compared to the end of 2021. Also during this period, 682,966 customer loans, loan turnover reached VND 64,378 billion, and outstanding loans reached VND 1,748 billion with 95,948 customers with outstanding loans.

To solve the root of the black credit problem, Mr. Tu proposed two solutions. Firstly, strengthen propaganda to the people so that people understand that borrowing from banks is not difficult.

The second is to combine local government to manage people to determine the legitimate purpose of people's loans, instead of borrowing capital to do other problems.