Ho Chi Minh City supports interest-free loans for officials who quit their jobs after administrative restructuring.

(Chinhphu.vn) - The Ho Chi Minh City People's Committee has just sent a report to the Standing Committee of the City Party Committee on the policy of supporting loans to create jobs and stabilize the lives of cadres, civil servants, public employees, part-time workers and workers who have quit their jobs after the process of rearranging and streamlining the organization of the political system in the city.

The loan capital will be drawn from the City budget, entrusted through the Social Policy Bank, Ho Chi Minh City Branch, for implementation.

Loan up to 300 million VND, 100% interest support for 5 years

According to the Ho Chi Minh City People's Committee, the recent streamlining of the organizational apparatus according to the general policy has contributed to improving the effectiveness and efficiency of the City's political system. However, this process also requires practical support policies, creating conditions for those who quit their jobs early to stabilize their lives and change to sustainable jobs.

In the draft report recently sent to the Standing Committee of the City Party Committee, the Ho Chi Minh City People's Committee proposed implementing a policy to support loans to create jobs for this group of people. Specifically, the loan capital will be drawn from the City budget, entrusted to the Social Policy Bank, Ho Chi Minh City Branch for implementation.

The subjects eligible for loans are cadres, civil servants, public employees, non-professional workers and workers who are subject to termination of employment according to decisions on organizational restructuring of the city. Loan approval is carried out in the form of credit, through the People's Committee of the ward or commune where they reside, confirming the need for loans and eligibility for policies.

Each case can borrow up to 300 million VND, with a loan term of up to 10 years. The Ho Chi Minh City People's Committee proposed applying a loan interest rate equivalent to the loan rate for poor households as prescribed by the Prime Minister from time to time (currently 6.6%/year). In particular, in the first 5 years, the City budget will support 100% of the interest rate, helping borrowers not to have to pay interest during the start-up phase and stabilize their jobs.

After the interest support period, if the borrower fails to repay on time, the interest rate will be calculated at 130% of the loan interest rate as prescribed at that time. This is a solution that both creates favorable conditions for laid-off workers to have capital to invest in production and business, and ensures responsibility in using the loan capital.

In the initial period, Ho Chi Minh City expects about 1,600 people to need loans, equivalent to 30% of the group in need of job creation among the total number of people who have quit their non-professional jobs at the commune level. Accordingly, the capital needed is about 510 billion VND. Currently, according to Ho Chi Minh City's initial survey, about 5% of people need loans to do business and production to stabilize their lives.

The city calculates that with a maximum loan of 300 million VND, borrowers can effectively implement small business models suitable to actual conditions, such as: opening a coffee shop, breakfast shop, grocery store, skills training facility, specialty store, small repair service or investing in vehicles for personal transportation activities...

Supporting interest-free loans for officials is a solution demonstrating Ho Chi Minh City's responsibility for the contributions of its staff during their work, while also contributing to building a civilized, modern, and humane city.

Creating sustainable livelihoods and stabilizing the lives of staff

According to the Ho Chi Minh City People's Committee, the implementation of the policy to support loans to create jobs for officials and workers who have quit their jobs is part of the overall support policies after restructuring the apparatus and streamlining the City's political system.

Previously, Ho Chi Minh City has implemented many support policies on social housing, vocational training, job referrals, etc., contributing to creating sustainable livelihoods, limiting pressure on social security, and at the same time encouraging cadres subject to rearrangement to confidently implement the general policy.

Currently, the Ho Chi Minh City People's Committee is continuing to review and consult with relevant departments and branches to complete the policy, expected to submit it to the City People's Council for approval in the near future.

The city also directed the Ho Chi Minh City Bank for Social Policies to prepare resources and implementation procedures so that the policy can be put into practice immediately after being approved.

According to the report of the Ho Chi Minh City People's Committee, from 2023 to present, the City has arranged and streamlined the organizational apparatus at many agencies and units, including many cases of cadres, civil servants, public employees, and non-professional workers quitting their jobs at will or according to the arrangement decision.

Therefore, this policy of supporting loans to solve employment problems is considered a practical solution, contributing to solving immediate difficulties for laid-off workers, while promoting the development of household and individual economies in the area.

The policy of streamlining the apparatus and reorganizing agencies and units in Ho Chi Minh City is implemented according to resolutions and directions of the Central Government and the Ho Chi Minh City Party Committee, aiming to improve the operational efficiency of the political system, meeting the requirements of the city's development in the new situation.

However, Ho Chi Minh City leaders affirmed that, in parallel with streamlining, the City always pays attention to implementing timely support policies, creating conditions for laid-off officials to have the opportunity to access capital, change careers, start businesses, and stabilize their lives.

This is also a solution demonstrating Ho Chi Minh City's responsibility for the contributions of workers during their work, while contributing to building a civilized, modern, and humane city.

Le Nguyen

Source: https://baochinhphu.vn/tphcm-ho-tro-vay-von-khong-lai-suat-cho-can-bo-thoi-viec-sau-sap-xep-bo-may-hanh-chinh-102250625223205952.htm