ID :
47904
Fri, 02/27/2009 - 13:13
Auther :
Shortlink :
http://m.oananews.org//node/47904
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Efficiency of micro-finance activities improved
Hanoi (VNA) - The State Bank of Vietnam (SBV) and relevant agencies have given their
backing to a proposal to change the status of organisations involved in semiofficial
micro-financial activities into officially recognised legal entities to help raise
more funds for hunger eradication projects.
Semiofficial micro-financial activities are usually included in projects that are
sponsored by non-governmental organisations or mass organisations, funded with
budget capital or member contributions. These projects are considered successful
in approaching poor customers.
The Vietnam Microfinance Working Group of the Vietnam Union of Friendship
Organisations hosted a seminar to assess these activities on Feb. 26.
Deputy Head of the SBV Banks Department Truong Ngoc said that despite the
advantages to the customer, compared with other financial organisations, the
market share of semiofficial micro-finance activities is just 5-6 percent of the
total value of organisations involved in micro-finance activities for the poor.
"If these organisations are changed into those with legal entity status to operate
under the Business Law, they will be equal with the others in mobilising capital
in the market to give better help to the poor," Anh said. The SBV has received
three applications from organisations that want their status changed into
micro-finance organisations, he added.
Together with finalising the legal procedures necessary to boost the development
of the micro-finance sector, the central bank is lending its weight to the
establishment of the Vietnam Microfinance Association. The association is expected
to protect the legitimate rights and benefits of micro-finance organisations. It
will also coordinate with the SBV to lobby the Government regarding issues that
concern microfinance activities.
The French Development Agency and the Asian Development Bank have pledged 3
million USD to help Vietnam 's micro finance sector fund personnel training
for its professional organisations.
The Social Policy Bank, the Bank for Agriculture and Rural Development and other
organisations licensed by and operating under the supervision of the SBV currently
account for up to 90 percent of the country's market share for micro
loans.-Enditem
backing to a proposal to change the status of organisations involved in semiofficial
micro-financial activities into officially recognised legal entities to help raise
more funds for hunger eradication projects.
Semiofficial micro-financial activities are usually included in projects that are
sponsored by non-governmental organisations or mass organisations, funded with
budget capital or member contributions. These projects are considered successful
in approaching poor customers.
The Vietnam Microfinance Working Group of the Vietnam Union of Friendship
Organisations hosted a seminar to assess these activities on Feb. 26.
Deputy Head of the SBV Banks Department Truong Ngoc said that despite the
advantages to the customer, compared with other financial organisations, the
market share of semiofficial micro-finance activities is just 5-6 percent of the
total value of organisations involved in micro-finance activities for the poor.
"If these organisations are changed into those with legal entity status to operate
under the Business Law, they will be equal with the others in mobilising capital
in the market to give better help to the poor," Anh said. The SBV has received
three applications from organisations that want their status changed into
micro-finance organisations, he added.
Together with finalising the legal procedures necessary to boost the development
of the micro-finance sector, the central bank is lending its weight to the
establishment of the Vietnam Microfinance Association. The association is expected
to protect the legitimate rights and benefits of micro-finance organisations. It
will also coordinate with the SBV to lobby the Government regarding issues that
concern microfinance activities.
The French Development Agency and the Asian Development Bank have pledged 3
million USD to help Vietnam 's micro finance sector fund personnel training
for its professional organisations.
The Social Policy Bank, the Bank for Agriculture and Rural Development and other
organisations licensed by and operating under the supervision of the SBV currently
account for up to 90 percent of the country's market share for micro
loans.-Enditem
