(VOV/VOVworld) - As from April 16, the Government will provide preferential loans to about 1.5 million households in Vietnam who are living near the poverty line. Under a decision signed recently by Prime Minister Nguyen Tan Dung, loans for these households will have an interest rate of 0.85 percent per month - about 10 percent a year.

Many near-poor households have escaped from poverty thanks to the Government's preferential loans (Photo: VGP)

Under the standards set for the 2011-2015 period, near-poor households are those with a monthly income of 19 - 25 USD in rural areas or 24 - 31USD in urban areas. Those with less income than this are designated as poor households. The new credit policy to ensure social security and sustainable poverty reduction has received public appreciation. Vu Anh Nam, Deputy Head of the Department of Social Protection of the Ministry of Labor, Invalids, and Social Affairs, said: Near-poor households are likely to fall into poverty again.  Some households, after escaping from poverty, remain near the poverty line. The boundary between poor and near-poor households is porous, so policies for near-poor households are crucial. The preferential loans will help near-poor households boost production, which will prevent any new poor households.

Localities are reviewing the list of near-poor households to ensure their quick access to the preferential loans.