Removing credit obstacles, bringing sustainable development to cooperative economy

According to experts, although the collective economy and cooperatives in our country have developed, they have not yet met the requirements. There are still shortcomings, inadequacies, and limitations that need to be addressed and resolved, such as: A large proportion of individual households in rural areas have not yet joined cooperatives and cooperative groups; a large number of cooperatives are small-scale, have little capital, limited management capacity, low member linkage, lack of prestige and brand in the market, and weak management capacity of cooperatives; access to credit capital of cooperatives has not yet met the needs of production and business...

Meanwhile, representatives of many cooperatives also shared that one of the biggest difficulties is that accessing bank capital is still difficult due to not meeting loan conditions.

Therefore, cooperatives wish to reduce the conditions for borrowing capital; have a mechanism to borrow capital with preferential interest rates; the loan period for agricultural production must have a long loan period of at least 10 years or more...

This proposal was agreed by experts. At the scientific workshop “Cooperative credit: Current situation and solutions”, Dr. Pham Minh Tu, Deputy Director of the Banking Strategy Institute, said that to provide financial support for the formation and development of cooperatives, the State can use tax policies, support investment in transport infrastructure, electricity, water, irrigation works, etc. or use part of the budget to create a system of financial support funds.

Cooperatives borrow capital from credit institutions in the form of mortgage (in which the mortgage is the assets formed from the loan capital), credit and loans according to effective production and business projects.

“Experience from some countries shows that promoting credit for cooperatives is diverse and takes many forms. From there, Vietnam can learn from the experiences of other countries to orient the development of cooperatives and apply them appropriately to the actual conditions of Vietnam,” Dr. Pham Minh Tu emphasized.

Regarding the solution from the banking sector, Ms. Pham Thi Thanh Tung, Deputy Director of the Department of Credit for Economic Sectors (State Bank) said that, closely following the policy in Resolution No. 20-NQ/TW dated June 16, 2022 of the Central Executive Committee on "increasing access to bank credit capital for effective production and business projects, Resolution No. 09/NQ-CP of the Government dated February 2, 2023 on the Government's action program to implement Resolution No. 20-NQ/TW, in the coming time, the State Bank will continue to direct credit institutions to perform a number of tasks:

Balance capital, focus credit on cooperative economic organizations, cooperatives operating in production, business, priority fields according to the Government's policy, new cooperative models operating effectively, cooperatives participating in developing products with strengths, producing according to the value chain applying high technology, with high commercial value, cooperatives innovating and digitally transforming in accordance with the provisions of law;

Regularly research and develop a variety of bank credit products; review, improve and innovate processes, procedures and credit granting conditions in accordance with the requirements and practical operations of cooperatives to gradually expand and enhance capital support as well as access to bank credit for all types of collective economies.

In addition, the State Bank will continue to review, research and propose to improve credit policy mechanisms, focusing on improving credit policies serving rural agricultural development to increase cooperatives' access to credit.

Continue to effectively organize and implement interest rate support credit programs and national target programs to support cooperatives in stabilizing, restoring and developing the economy.

Regularly grasp and promptly deploy solutions to remove difficulties in the borrowing activities of cooperatives to promptly advise local Party committees and authorities to deploy solutions or recommend competent agencies solutions to support the removal of difficulties and support the development of collective economic sectors in the area.

Cong Hieu

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