Conference on removing difficulties and connecting credit for cooperatives in the province

On April 10, the Provincial People's Committee held a conference to discuss and resolve difficulties and obstacles and connect credit for cooperatives in the province in 2024. Attending were Mr. Trinh Minh Hoang, Vice Chairman of the Provincial People's Committee, representatives of relevant departments and branches.

In recent times, collective economic activities have continued to be maintained stably and developed, production scale has been expanded; some new cooperative models with effective operation have been replicated; state management of cooperatives has been strengthened, cooperative activities in the province have continued to be maintained stably and developed. Up to now, the whole province has 123 cooperatives, with registered capital of 245.59 billion VND. Of which, cooperatives operating mainly in the agricultural sector account for 76.61%; in the trade - service and other sectors 7.26%; in the transport sector account for 5.79%; and People's Credit Funds account for 2.42%. In order to implement solutions to remove difficulties in accessing capital for customers, including cooperatives. Since the beginning of the year, the State Bank of the province has also directed branches of commercial banks in the province to support and guide cooperatives in accessing credit policies to serve agricultural and rural development according to Decree 116/2018/ND-CP and Decree 55/2015/ND-CP of the Government. According to the report, the total outstanding credit balance for cooperatives as of February 29, 2024 was VND 947 million, the outstanding balance mainly focused on cooperatives operating in the fields of agriculture, forestry, fishery, salt and industry, and short-term loans accounted for 94.2%. Bad debt as of February 29 was VND 55 million, accounting for 5.8% of the total outstanding loans for cooperatives, 8.5 times higher than the bad debt ratio in loans for the whole province. Lending capital to cooperatives is very difficult, mainly banks lend directly to members of cooperatives for production and business.

Comrade Trinh Minh Hoang, Vice Chairman of the Provincial People's Committee spoke at the conference.

At the conference, cooperatives discussed difficulties and obstacles in implementing legal regulations in credit relations and using banking services in the past and wished to consider supporting interest rate reduction, creating conditions for accessing loans, simplifying procedures so that cooperatives have capital to meet production and business needs. Representatives of banks in the province also shared the difficulties of cooperatives, at the same time implementing legal regulations on credit granting, information on credit packages and programs for cooperative customers, and conditions to ensure safety for borrowing capital.

Speaking at the conference, the Vice Chairman of the Provincial People's Committee said that the cooperative economy has had positive developments in recent times, gradually improving quality, diversifying forms and fields of operation, making an important contribution to the construction of new rural areas and significantly contributing to the overall growth of the province. He requested that banks, departments, branches, and localities continue to promote solutions and tasks according to their functions and authority, regularly pay attention to and accompany cooperatives, support timely resolution of difficulties and problems, create the most favorable conditions for cooperatives to develop comprehensively and effectively in production and business activities. He also hoped that cooperatives would unite and cooperate to overcome all difficulties, promote dynamism, creativity, autonomy, overcome shortcomings, enhance the application of science and technology, effectively implement digital transformation, actively expand the market, and contribute to the socio-economic development of the province.

Red Moon

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