VietNamNet Bridge – Receiving billions of dong in compensation, several residents in Nuoc Trong water reservoir project area, Tay Tra District’s Tra Tho Commune, Quang Ngai Province, thought they’d be able to escape debts they had accrued through high interest loans.

A resettlement area in Nuoc Biec Village in Tra Tho Commune.Cor ethnic people in Tra Tho Commune are now suffering usury’s consequences. — Photo baoquangngai.vn

Tre Village in Tra Tho Commune was home to many Cor ethnic people. Looking in the direction of the old village which is now submerged under Nuoc Trong reservoir, Ho Van Tram, 70, said that he had never imagined being given VND770 million (US$33,800) to give up his house and farm. However, the trouble that came later was even bigger than the compensation he received.

“The money that I planned to divide among my six children was taken away by strangers. They said that my youngest son had taken out a loan and I was responsible to pay it back,” said Tram.

Even before Tram received the compensation, his son had borrowed money at an interest rate of 50 per cent. Therefore, from the initial VND770 million, Tram was left with savings of just VND200 million ($8,784). The family still depends heavily on a small garden to make ends meet.

Ho Van Khanh, 30, Tram’s neighbour, is facing the same situation.

“The loan shark just took my only motorbike away. I have nothing to pay back,” he said.

Khanh did not receive any compensation but his parents did. This made him fresh bait in eyes of lenders. They were too generous back then in letting him borrow money. With oral contracts, Khanh cannot remember how much he got.

When the lender asked him to pay back a loan of VND400 million ($17,568) Khanh went to his father for help. The father, however, had only VND40 million ($1,756) left as he split the rest among his children.

“I am at a dead-end. My two farms are on sale at VND100 million ($4,392) but no one wants to buy,” he said.

Among people who took out loans, Ho Van Tap had a good reason. Buying buffalos, pigs, a farm of 3ha and a motorbike for his child, he hoped his life would turn around soon. In reality, however, the compensation of VND600 million ($26,352) was just enough to pay the old debt as Tap made an oral contract and was forced to pay high interest.

“After every storm comes a rainbow,” the old words of wisdom, unfortunately, are not sufficient for these Cor ethnic people. Ho Van Nhit, head of Nuoc Biec Village in Tra Tho Commune, told Tuoi tre (Youth) newspaper that 20 out of 37 households receiving compensation were burdened with high debts.

“Parents received compensation, then their children were tempted to borrow money at high interest rates. Some families were not able to clear their debts, even with the billions of dong that they received,” said Nhit.

Ho Tan Vu, head of Tra Tho Commune People’s Committee, said that although local authorities had warned against usury, Cor people could not resist the temptation of surprisingly generous lenders. Since there is no written contract between people and lenders, it was impossible to handle the situation.

“Leases were arranged by word of mouth so we do not know how to intervene and help settle debts,” said Vu.

Hoang Nhu Lam, deputy head of Tay Tra District, said that there was no record indicating the high interest that lenders asked people to pay.

“We have demanded the police force to investigate and propose solutions,” he said.

According to Nguyen Van Quang, deputy director of the Nuoc Trong water reservoir project, 450 households were moved to the resettlement area when the project was implemented. The State has paid total compensation of VND342 billion ($15 million) in three batches.

The Cor ethnic people occupy the majority of Tay Tra District. With poor households accounting for 75 per cent of the population, the compensation from the Nuoc Trong reservoir project was expected to bring them better lives.

Source: VNS