Proposing to loosen criteria of VND16,000 billion credit package to pay workers salary

	Concerns that money flows into the risky fields to push credit growth?
	Banks expect credit growth extension
	Banks to offer credit packages for customers affected by COVID-19

The localities have drastically pushed the labor support process. Illustration photo: H. Diu

At an online conference of the Government with localities to assess the socio-economic situation in the first six months and implement tasks in the last six months of 2020 on July 2, Minister of Labor, Invalids and Social Affairs, Dao Ngoc Dung said, despite the complicated situation of the Covid-19 pandemic, people's life and social security are still guaranteed.

People's living standards improved, the average income of Vietnam increased to VND4.3 million, the average urban income reached VND7.1 million, up VND400,000 compared to the same period.

Moreover, up to now, the positive signal is that the Vietnamese labor market has recovered quickly. In June, 120,000 laborers were provided jobs due to the resumption of industries.

Regarding the implementation of Resolution 42 and Decision 15 on social security support affected by the Covid-19 pandemic, the Minister of Labor, War Invalids and Social Affairs said that localities, levels and sectors all participated in drastic drills.

By the end of June, localities supported 15.8 million people with sixgroups, the cost was VND17.5 trillion. Localities disbursed more than VND11,000 billion, supported 15 million people, nearly 7,000 business households, workers who lost their jobs, the poor and the meritorious.

The Minister explained the opinion that the amount of support is small; the reason is due to the social distance date estimated by three months, but actually only one month. So, the problem is not the amount ofsupport, but how many are supported. The support still faces difficulties due to duplicates, some localities are afraid of wrong support, so they are slow to implement or have difficulty in funding, so the list has been approved but cannot be disbursed.

About the VND16,000 billion credit package with 0% interest rate to settle severance pay for employees implemented by the Bank for Social Policies, Minister Dao Ngoc Dung said that it is difficult to access as the criteria are too high.

Therefore, Minister Dung asked the Government to allow the adjustment of loosening conditions for this credit package, toremove the second criterion is enterprises with no new revenue sources can borrow.

“Enterprises without income are already bankrupt, they no longer need to borrow to pay salaries. We should propose the Government and the Prime Minister to adjust and giveto the Minister of Labor, Invalids and Social Affairs and the State Bank to implement soon, to help stimulate consumption and production," Minister Dao Ngoc Dung said.

In addition, he proposed that the Government adjust and expand another subject, which is a private school teacher who has lost their job but has not been supported, the funding is still in the approved package in the Resolution 42.

With the above recommendations and proposals, Prime Minister Nguyen XuanPhuc said that we had previously forecasted social distance date ofthree months but it wasonly one month, so it has not been fully disbursed.

Effectively deploy credit support solutions for businesses and people VCN- The Resolution of the Government’s regular meeting in April 2020 requires ministries, sectors, the business community ...

In addition, the Prime Minister agreed to give interest-free loans to the end of December 2020, as well as adjust the proposed criteria in the VND16,000 billion package. But the Prime Minister insisted that the budget was only at that level.