VietNamNet Bridge – Bank for Social Policy deputy director Duong Quoc Thang spoke to Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper about his bank's plan to cover debts created when guest workers fled the turmoil in the Middle East.

What's the total debt caused by guest workers returning home early from contracts in North Africa and the Middle East?

The outstanding debt owed by 39,270 Vietnamese guest workers abroad as of February 28 was about VND807.6 trillion (US$40.4 million). Before being sent abroad, most workers borrowed money from the bank to pay fees set by labour exporting companies]. On March 1, the bank sent an official note to its branches in all provinces and cities nationwide asking them to report on the outstanding debt owed on export labour contracts in Libya and the Middle East.

The total figure came out to VND118.8 trillion ($6 million) from 4,874 clients, of which 1,581 were guest workers from Libya, owing VND37.5 trillion ($1.87 million).

How will the bank handle the debts?

Under the bank's policy on debts owed when guest workers return home early due to a political crisis in a host country, the maturity date of the debt can either be extended or frozen. The general director of the bank has instructed the CEOs of provincial/city branches to work out with relevant agencies the number of guest workers returning home from Libya and other African countries and the actual outstanding debt represented by the terminated contracts. For export labour companies wanting to have their payback period extended or frozen, the bank staff have asked them to make a written request. All these procedures are regulated in Decision No 15/QD-HDQT of January 27, issued by the chairman of the management board of the Bank for Social Policy.

Will the bank extend credit to guest workers wanting to work in other countries or starting their own businesses back home?

A number of enterprises in Viet Nam have offered employment to workers returning from Libya. This is a good opportunity for them. However, for those wanting to work in other countries, the Ministry of Labour, Invalids and Social Affairs will consider their requests if there are vacant places.

If any of them wanting to attend a vocational training course here, they are eligible to apply for credit under the vocational training credit programme for 2010-11. Under that programme, each candidate can borrow up to VND900,000 ($45) a month.

How will the bank cover its losses?

The overdue debts owed by guest workers from Libya and other African countries are force majeure, and the Prime Minister has instructed us to draft a plan requesting more funds to cover the shortage. We have to send the plan to the Ministry of Planning and Investment, the Ministry of Finance and the State Bank of Viet Nam for approval before submitting it to the Government. After getting the nod from the Prime Minister, the Bank for Social Policy will raise the funds through a bond issue.

VietNamNet/Viet Nam News