The Ho Chi Minh City People's Committee has just sent a report assessing the impact of the policy on the draft resolution regulating the regime of supporting loans to solve employment for cadres, civil servants, public employees, and non-professional workers who quit their jobs after the reorganization of the political system in the area.
According to the provisions of the Law on Public Investment, Ho Chi Minh City will implement a preferential credit policy through the Ho Chi Minh City Social Policy Bank to support cadres, civil servants, and part-time workers to borrow capital.
The maximum loan amount is regulated to be 300 million VND/person. However, the specific amount will be considered and decided by the Ho Chi Minh City Branch of the Social Policy Bank, based on factors such as capital needs, production - business cycle, existing capital sources and borrower repayment capacity.
The loan is granted to support workers in creating new jobs or expanding existing business activities. The lending form is by collateral, meaning there is no need to mortgage assets, but there needs to be confirmation from the People's Committee at the commune level about the need to borrow capital and being the correct subjects according to regulations.
The maximum lending period is 120 months (10 years), the specific period will be agreed upon by the bank with the borrower based on the production - business cycle and the ability to repay capital.
Regarding interest rates, the current application rate is 6.6%/year - equal to the lending rate for poor households prescribed by the Prime Minister. The borrower will pay interest monthly. In particular, in the first 5 years, Ho Chi Minh City will support 100% of interest rates from the city budget.
The support method will be chaired by the Department of Finance, in coordination with the Department of Home Affairs and the Ho Chi Minh City Social Policy Bank. In case the borrower pays late, the overdue debt interest rate will be calculated at 130% compared to the original loan interest rate.
The lending procedures and procedures and debt settlement are implemented according to current regulations of the Ho Chi Minh City Social Policy Bank and the Ho Chi Minh City People's Committee.
According to the assessment report of the Ho Chi Minh City People's Committee, it is expected that in the first phase, there will be about 1,600 people in need of loans, equivalent to 30% of the number of people needing to solve employment after restructuring the political apparatus. The total capital demand for this group of subjects is estimated at about 511 billion VND.
Previously, a survey of nearly 5,000 affected cadres, civil servants and public employees showed that initially, 231 people wanted to borrow capital to self-production and business to stabilize their lives.
According to the Project on the arrangement of commune-level administrative units of Ho Chi Minh City in 2025, at the district level, 4,946 civil servant staffing quotas will be re-allocated to the commune level. At the same time, 61,998 civil servants and employees receiving salaries from the budget at the district level will be transferred to the commune level.
In the ward, commune and town blocks, 6,627 cadres and civil servants working at the current commune-level People's Committees (including 2,011 cadres and 4,616 civil servants) will be transferred to the commune-level payroll after the arrangement.
After adjustment, the total number of commune-level cadres and civil servants in Ho Chi Minh City will be 11,573 people.
According to the plan, Ho Chi Minh City aims to streamline at least 20% of the number of cadres, civil servants, and public employees receiving salaries from the budget within 5 years, equivalent to about 4% per year.
About 5,562 part-time workers at the commune level will be given the regimes and policies according to regulations.
