Preferential Credit Research Articles

Community membership and reciprocity in lending: Evidence from informal markets

We study credit access in informal economies where market institutions, such as financial reporting systems, auditing, and courts, are nonexistent or function poorly. Using the setting of a large bazaar in India, we find that community membership plays a vital role in access to credit. Wholesalers are more likely to provide credit and offer greater amounts of credit to within-community retailers, and are more lenient when these retailers are delinquent. Furthermore, wholesalers who lent preferentially to their community retailers pre-COVID are more likely to receive help from their community following the COVID-19–related income shock, particularly from same-community landlords and suppliers. Also, wholesalers with low endowments, those with greater within-community information flow about them, and those facing income shocks are more likely to provide preferential credit to their community retailers. Our findings are consistent with an indirect reciprocity mechanism explaining within-community credit flows.

PROMOTING ESG PRACTICES AT STATE - OWNED COMMERCIAL BANKS IN VIETNAM

ESG (Environmental, Social, Governance) is a set of standards for assessing environmental, social and corporate governance factors, which are important in building a sustainable financial foundation. In the banking industry, implementing ESG is not only a trend but also an essential requirement for sustainable development, helping banks minimize risks and costs in the long term, improve operational efficiency and build reputation. The study presents the practical implementation of ESG. in the operations of state-owned commercial banks holding 50% of shares, including Vietinbank, Vietcombank and BIDV. Initially, banks have closely followed ESG standards according to international standards and legal regulations to build a sustainable development framework and invest resources for ESG practices at banks. These banks have made significant progress in ESG practices, including strengthening green credit policies and being more transparent in disclosing environmental and social information, implementing many preferential credit programs for many customer groups; focusing on community support activities. However, these banks still face challenges in fully integrating ESG factors into their business operations. Based on the analysis of the above situation, the article proposes two groups of solutions to promote ESG practices in commercial banks: (i) Group of solutions for state banks; (ii) Group of solutions for state-owned commercial banks.

АНТИКРИЗОВІ СЦЕНАРІЇ МІЖГАЛУЗЕВОЇ ВЗАЄМОДІЇ ПЕРЕРОБНО-ХАРЧОВИХ АГРОХОЛДИНГІВ В ЦІЛІСНІЙ СИСТЕМІ ЕКОНОМІЧНИХ ВІДНОСИН З АГРАРНИМИ ПІДПРИЄМСТВАМИ

The article contains the theoretical and methodological principles of developing anti-crisis scenarios of intersectoral interaction of agricultural market participants to minimize the impact of production risks of agricultural enterprises, transformation of indicators of the production and technological cycle and neutralization of the crisis level of competitiveness of processing industry enterprises. The density curves of the distribution of the probability of accidental losses were constructed; a risk zone is determined for an in-depth interval assessment of minimization of the crisis of agricultural holdings. Meat-processing agricultural holdings are singled out and the multi-vector nature of changes by types of production-technological cycle is determined based on the results of a multi-level diagnosis of the crisis of competitiveness of meat-processing agricultural holdings in the integral system of economic relations with agricultural enterprises. Poly-vector changes in the level of the crisis of the competitiveness of meat-processing agroholdings according to the integral indicator of ensuring the production and technological cycle in the time interval of 2021–2023 have been determined (without taking into account the amount of financial support from private investors and taking into account capitalized profit and state preferential lending). Empirical dependencies of variable indicators of insurance of the production and technological cycle of domestic meat processing agroholdings in the approximation of actuarial calculations are substantiated. Anti-crisis scenarios of cross-industry interaction of meat-processing agricultural holdings in an integrated system of economic relations with agricultural enterprises to neutralize crisis factors of competitiveness for 2024–2028 are proposed. It was concluded that the level of competitiveness of agroholdings depends on dynamic development, which is influenced by indices of agricultural raw materials, price indices for by-products and their processing products, preferential credit rates, volumes of private investments, state material assistance and the level of insurance payments.

E-Commerce and Preferential Credit to Enable Farmers’ Cooperative Financing

ABSTRACT Agricultural cooperatives are pivotal in promoting agricultural industrialization but face capital shortages, needing strategic financing selection between bank loans and e-commerce. This paper uses Stackelberg game theory to examine cooperatives’ and enterprises’ optimal decision-making and motivations under different financing. It scrutinizes preferences for financing methods and explores bank credit policies and e-commerce interest rates in channel selection. Findings suggest that developing favorable policies, like encouraging green credit and e-commerce support for farmers, could significantly improve cooperatives’ financing. Expanding digital initiatives in supply chains could also enable more sustainable models. This research illuminates cooperatives’ complex decision-making and offers insights to bolster agricultural finance systems.

Monetary Stimulus amidst the Infrastructure Investment Spree: Evidence from China's Loan‐Level Data

ABSTRACTWe study how a fiscal expansion via infrastructure investment influences the dynamic impacts of monetary stimulus on credit allocation. We develop a two‐stage approach and apply it to the Chinese economy with a confidential loan‐level data set that covers all sectors. We find that infrastructure investment significantly weakened monetary policy's transmission to credit allocated to private firms, while reinforcing the monetary effects on loans to state‐owned firms. This fiscal‐monetary interaction channel is key to understanding the preferential credit access enjoyed by state‐owned firms during the stimulus period. Consequently, monetary stimulus crowded out private investment and decreased capital allocation efficiency.

Екологічне оподаткування в європейському союзі та Україні: тенденції й перспективи

One of the key challenges for society is to ensure its sustainable development. Today humanity is at a turning point that requires a change in the vector of its existence by balancing economic, environmental, and social components. Environmental taxes are beginning to act not only as a source of income, but also as a lever of influence and a stimulating factor in changing the behavior of economic agents. The purpose of the study is to analyze the system of environmental taxation in Ukraine and the European Union and to identify areas for improving Ukraine's environmental policy. The following methods were used while writing the article: logical generalization, structural and functional analysis and comparison. The efficiency of environmental taxation is assessed through the prism of the fiscal function of taxes. The dynamics of environmental tax revenues in the EU countries and Ukraine during 2012-2021 is analyzed. The structure of environmental tax is studied. It is established that the environmental tax in Ukraine is aimed at controlling the level of pollution, while the EU countries focus on taxation of energy. The revenues from this tax and its share in the GDP structure of Ukraine are much lower than in Europe, which indicates the inefficiency of its fiscal function. The article considers the constraints to the development of environmental taxation in Ukraine. The incentives for sustainable development of the EU countries aimed at environmental protection are presented. Based on the experience of the European Union, the author proposes measures to improve environmental taxation in Ukraine which include: increasing the environmental tax while reducing the tax burden on wages; development of differentiated tax rates according to the amount of emissions and the region of pollution; creation of a special environmental fund for the accumulation and targeted and efficient distribution of revenues; introduction of a tax on the use and import of fertilizers and pesticides; introduction of accelerated depreciation and preferential credit. Keywords: sustainable development, ecologization, fiscal policy, environmental taxes.

Retailer's credit preference under perfect competition Based on the Stackelberg model

Trade credit is provided by suppliers to meet the purchase needs of retailers, playing a more and more important role in trade. In this paper, the effects of preferential credit on retailers' business decisions are investigated under capital constraints in a perfectly competitive market. In this game model, the loan competition conditions are considered when banks and manufacturers offer preferential credit to capital-constrained retailers. In the proposed model, different credit lines and preferential credit discount rates are mainly related to the exogenous collateral of retailers and the risk appetite of banks and manufacturers. The effects of bank financing and trade credit on a retailer's inventory decision are also discussed under different circumstances of whether the retailer's financing amount exceeds the credit limit. The equilibrium wholesale price and optimal order quantity of retailers under different circumstances are deduced. Moreover, the effects of discount rate, institutional risk preference and collateral quality on the two are obtained. These results reveal that the factors affecting the decision-making of retailers and manufacturers are also different in different situations.

Малый и средний бизнес в новых экономических условиях.

In recent years, the socio-economic environment for doing business has changed significantly under the impact of the COVID-19 pandemic and increasing sanctions on the Russian economy. The small business sector is particularly affected by these factors. The aim of the paper is to study the “reaction” of the Russian small and medium-sized businesses (SME) sector to the new economic environment and to analyse its “perception” of state support measures. The information base consists of the works of domestic and foreign scientists, the data of sociological research at the country level and at the regional level (subjects of the Northwestern Federal District). In the study, the methodology of system analysis was applied, sociological and statistical analysis was carried out. The results of the study show that despite the focus of the federal and regional authorities on creating conditions to offset the effects of external “shocks” on the business sector, there remain unresolved problems. These include low effective demand and poor business infrastructure in some areas, which hinders SMEs' access to finance for business development. This situation has led to a decline in SME revenues and employment, as well as a deterioration in the demographics of enterprises. The deterioration of the business environment has also been identified as having a negative impact on the attitudes and willingness of the population to engage in entrepreneurship. The authors assess the accessibility of state support measures for entrepreneurs using the example of the Vologda Oblast. On average, only about 60 % of those who applied for assistance were able to receive it. The authors prove that under the conditions of strengthening external shocks the necessity of state support for the SME sector increases, especially in terms of tax and financial support. The need to reduce administrative barriers to business, to provide an additional reduction of up to 10 % of insurance premiums charged on wages, to increase the period of repayment of preferential credit funds, etc. has been substantiated.

Trends in the development of book printing and book distribution in the world's leading countries through the lens of reading problems

The features of book distribution systems in different countries of the world are investigated. The role of book clubs and book chains in the way of a book to its reader is revealed. The leading role of the state support for book publishing is outlined. Factors of state support for book publishing and book distribution, such as creating reading development programs, facilitating the opening of new bookstores, organizing book fairs, exhibitions, festivals and other events to support the book, establishing literary prizes and competitions, replenishing library funds, protecting copyright, have been identified. Possibilities of introduction of experience of leading countries of the world (in particular Canada) in support of book publishing and book distribution industry, such as granting of preferential credits, influence on book pricing, introduction of a "fixed" price during book realization, are investigated. The media habits of the inhabitants of different countries of the world have been researched, it has been found out how much time a person spends watching TV programs, listening to music on the radio, reading. Although in the modern world, residents are spending less and less time on the book, preferring other types of entertainment and leisure, the books are no less printable, book publishing remains a large business, valued at $ 151 billion and generating more than cinema, magazines, video games and music. In an effort to survive, book publishers are united in media conglomerates, most of their profits are from book sales. The readers' preferences been investigated. The competitiveness of paper and e-books has been investigated too. The advantages of paper books over e-books have been proved. Research shows that e-books are growing in popularity, but growth has slowed slightly since 2016. It is emphasized that paper books are the basis of reader's attention and demand.

ACCOUNTING AND FINANCIAL PROBLEMS OF BANK LENDING TO AGRO-INDUSTRIAL ENTERPRISES IN UKRAINE

The purpose of the article is to study the problems of implementing the credit mechanism in the agrarian sector, the rationale for the need to increase the amount of lending to the agro-industrial complex and the analysis of existing studies of bank lending to agricultural enterprises. The issue of solving the problems of lending to the agro-industrial sector in the modern scientific literature is not addressed enough. In light of this, the above-mentioned issues require further comprehensive research in order to identify effective ways to solve the existing problems. Problem statement. The task of the research is to: study the current state of bank lending in the country, analyze the state of accounting and financial support for lending to agro-industrial enterprises and determine the prospects for the development of agricultural enterprises in Ukraine; analyze the shortcomings and formulate the main trends of these enterprises. As a result of the research to investigate the accounting and financial problems of lending to agricultural enterprises, to highlight in detail their main problems and features. Methodology. The analysis of the activities of agricultural enterprises and the peculiarities of its management. The issues of formation and functioning of farms, as well as document management and business administration in these farms are debatable. Results. According to the research, accounting and financial problems and possible prospects for lending in the agricultural sector of Ukraine were analyzed. As a result of the study, we have analyzed the state, problems and possible prospects of lending in the agrarian sphere of Ukraine. The features of credit relations of agro-industrial enterprises with commercial banks are revealed, the state and trends of development, as well as the modern conditions of bank lending to agricultural enterprises are analyzed. The need for the state support in providing this industry with affordable long-term lending resources and the introduction of preferential credit mechanisms for agricultural commodity producers is determined. Practical implications. Peculiarities of credit relations of agro-industrial enterprises with commercial banks are revealed, their state and development tendencies are analyzed, as well as modern conditions of bank crediting of agrarian enterprises. They develop the real economy, expand employment opportunities and promote competition. The necessity of intensifying the development of agro-industrial enterprises, which is an important task of the state, has been proved. The solution of accounting and financial problems of bank lending to agro-industrial enterprises in Ukraine should be based on the introduction of European experience, which will contribute to the creation of a modern market economy with social justice. Lending to agricultural enterprises by commercial banks is currently quite complicated, and sometimes even impossible. The reasons are low profitability, return on capital employed and liquidity of the property. At present, farmers are considering alternative options for the replenishment of working capital. Therefore, the avalisation of bills and agrarian receipts may be used as an alternative to bank lending to meet the needs for the crop protection agents, fertilizers and planting material. These methods make it possible to obtain a delay in payment for the acquired resources or financial resources for the acquisition of working capital in the provision of agricultural enterprises with future harvest. The formation of strategic directions of creditor activity of banking institutions of Ukraine is considered on the example of activity of JSB "UKRGASBANK". The article pays attention to the issues of credit insurance in order to protect the interests of banking institutions and improve the formation of directions for solving the problems of bank lending to agricultural enterprises. Value/originality. The need for state support in providing agricultural enterprises with affordable long-term loans and the introduction of mechanisms for targeted lending to agricultural producers, which is possible only through a balanced government policy of comprehensive support for this sector of the economy. The directions of the decision of problems of bank crediting of the agricultural enterprises are offered. The improvement of legislation on the agrarian policy, the regulation of lending operations, the rational distribution of funds, their effective use and timely repayment of debt, and the corresponding policy of the state could remedy the situation.

HOW FARMERS ADAPT TO CLIMATE CHANGE IN AGRICULTURAL PRODUCTION: A CASE STUDY IN KY SON COMMUNE, KY ANH DISTRICT, HA TINH PROVINCE

Agriculture has become an extremely vulnerable industry to the impacts of climate variability and change. Thus, strengthening adaptation capacity to climate change in agriculture is a societal priority in most of countries in the world, especially in the developing countries where a large number of people depended on agricultural production. The results of the study show that climate change signals have been really clear in Ky Son commune through increasing extreme weather events, especially drought and hot spell. Farmers in Ky Son commune have revealed a lot of risks caused by climate change for their agricultural production. Farmers in the commune have considered adaptive strategies to climate change in agricultural production, of which weather forecasts update and changing crop varieties are the most popular adaptive strategies. The study indicated 7 factors that have significant effects on farmers’ decision in adaptation to climate change in agricultural production in the Ky Son commune, of which attendance in the training courses is the factor that have highest effect level. The study proposed the policies to improve farmers’ adaptive capacity to climate change in agricultural production in Ky Son commune including: (1) Broadening training courses on climate change; (2) Continuing the preferential credit; (3) Promoting large-scale production patterns; and (4) Downscaling and Localizing weather forecast information.

Prospects of using the urban railway for logistics support of urban areas

Relevance of the conducted study is determined by the prospects of involving urban railway to provide logistical support of urban territorial units. Both urban light freight railways and passenger railways and their development perspectives were considered. Within the framework of the study, methods of expert evaluations, abstract logical method, methods of theoretical generalization and system analysis, statistical analysis, as well as clustering were used. The advantages of creating an urban light freight railway were identified, the opportunities of interaction with logistics centers and other modes of transport were determined, and examples of effective public-private partnerships in this process were analyzed. The factors determining the effectiveness of functioning of the logistic link “urban passenger transport – city train” were determined. Overall, the authors conclude that to implement the proposed projects, efforts should be intensified to unite the potential of a large number of companies, give them access to preferential credit lines, attracting foreign investment funds, and the freight and passenger railways can work on a joint network but separate from other rail connections.

Financing with preferential credit to coordinate the capital-constraint supply chain

This paper investigates the impacts of preferential credit policy, faced by capital constraint retailers, on coordinating the supply chain. Apart from different bank’s and manufacturer’s risk preferences, preferential credit is also affected by the retailers’ exogenous collateral. We establish the preferential credit coordinating model (PCCM) to examine the optimal decisions and coordinate the supply chain with different financing channels, such as the preferential bank loan, preferential trade credit and portfolio credit. In this paper, we conclude some critical findings. Firstly, we find that the retailer’s optimal would improve its optimal order quantity in the coordinated supply chain when he finances from a risk-pursuing bank or the manufacturer. Secondly, the retailer’s financial cost would be shared with the manufacturer whether the retailer utilises preferential trade credit or bank financing channel. Thirdly, the capital constraint retailer would prefer preferential trade credit to the other financing methods for the purpose that the preferential trade credit could improve the coordinated supply chain’s efficiency. Finally, we capture different impacts of collateral and risk preference on the supply chain. This article supplements the existing literature on supply chain finance with a preferential credit insight into the condition of the coordinated supply chain.

Environmental aspects of agricultural policies of the European Union countries

At present, the state of the economy of the agricultural sector in many countries of the world, including in the countries of the European Union (EU), inherent in developed industry, has led to the transition to a new environmentally oriented agricultural policy. An important role is assigned to state support of agricultural producers, through subsidies, preferential credit policy, and in some countries, the complete abolition of taxation of entrepreneurial activity in rural areas, which confirms the relevance and national economic significance of the article. In domestic agroeconomic science and practice, there is no scientific concept of state participation in the process of bringing the agricultural sector out of the crisis. Research objectives – consider the development policy of the agricultural sector of the EU countries; study the level of state support for agricultural producers. The purpose of the work is to consider the degree of development of the agricultural policy of the EU countries in the context of ensuring food security. The methods and methodology of the research were general scientific, particular methods of cognition, including the historical and logical, the method of observation and comparison. Shows the main approaches to state regulation of the development of the agro-industrial sector at the level of the European Union as a whole and in the context of member countries; characteristic features and principles that determine the success and integrity of a unified agricultural policy; factors contributing to the productivity of agricultural land; agro-ecological requirements restricting the import of genetically modified products; the main tasks in the development of a new policy of the agrarian sector of the economy; priority directions of regulation of measures to support agricultural producers, integrated development of rural areas, increasing the competitiveness of the EU agricultural sector. The practical significance of the work lies in the fact that this study will allow the state bodies of Belarus to better understand how it is necessary to form an agricultural policy in the context of ensuring food security.

Article 176 of the Criminal Code of the Russian Federation: The Problems of Application and the Ways of Improvement

Introduction: at present, it is impossible to imagine a modern market economy without loans. This is also evidenced by the data of the Bank of Russia on the volume of business lending. In the Russian criminal legislation, one of the barriers to the development of negative trends in lending is Article 176 of the Criminal Code of the Russian Federation. However, in the law enforcement practice, there are problems with the application of Article 176 of the Criminal Code of the Russian Federation. Purpose: to identify the problems of application of Article 176 of the Criminal Code of the Russian Federation and identify the ways to solve them. Methods: the methodological framework for the study is based on the methods of scientific cognition, which include the historical-legal, comparative-legal, formal-legal, logical and systematic approaches. Results: the paper discusses the problems of applying Article 176 of the Criminal Code of the Russian Federation, which establishes the liability for illegal receipt of credit and preferential credit conditions, as well as for illegal receipt of a state target loan, as well as its use for other purposes. To solve these problems, it is necessary to improve the disposition of the criminal law norm on credit fraud. Conclusions: as a result of the conducted research, it is established that currently in Russia, lending is an important tool for financing entrepreneurship. At the same time, under the influence of various factors, the cases of non-repayment of loans to the credit institutions have become more frequent. In this regard, the legal solutions are needed that can affect the growth of the negative processes in the field of lending, in particular, it is necessary to improve the criminal law provision providing for the liability for illegal obtaining of credit.

The factors of birth of second child in contemporary Russia: The analysis of sociological survey results

The article considers the factors determining the orientation of Russians in relation to the birth of second child in single-child families. The analysis is based on the sociological survey data of the first wave of the All-Russian survey "The Demographic Well-being of Russia", carried out at the turn of 2019 - in the beginning of 2020 by the research team headed by Professor Rostovskaya T. K. The emphasis on the determination of namely second births is determined by the fact that it is just this determination that has social psychological and social economic character, while the dynamics of indices of first births is primarily associated with changes in nuptiality. Moreover, the two children continues to be the modal value of the ideal, the desired and the expected number of children in Russia and in the most other economically developed countries. The conclusions of the study are based on the distribution of respondents according a number of characteristics that stand as factors of second births. The analysis demonstrated that a more expressed orientation to the birth of second child occurs with relatively greater value of two children, perception of it as a factor contributing to marriage consolidation, significantly greater first of all in women. The importance of such motives for the birth of second child as strong desire in male spouse and desire to have an infant in the family again is emphasized. Besides, the results of the study demonstrated that high valuation of the standard of living promotes the formation of intention to have second child, without any delaying of its birth, but only among those ones who want to have one. It is established that the second births rate is effected by both the demographic factors (age and marital status), social factors (education level, the number of children in families of parents and friends, the nearest environment) and social psychological factors, motives of second child birth and the system of values of Russians. In the context of implementation of the strategy of family demographic policy, it is important that probability of second births is effected primarily by the improvement of quality of medical institutions functioning, development of personal services and provision of preferential credits depending on the number of children in family.

The impact of the Vietnam Bank for Social Policies preferential credit on household welfare in Vietnam: a panel data analysis

PurposeThe study examines the impact of the preferential credit provided by the Vietnam Bank for Social Policies on poverty reduction in Ninh Binh province, Vietnam. It also identifies and ranks the barriers of accessing the credit.Design/methodology/approachThe study applies fixed-effects method to handle the panel data to examine the impact of the credit on poverty reduction. It also uses face-to-face interviews and group discussions to identify and rank the barriers of accessing to the credit.FindingsThe results show that the credit (represented by loan volume) positively and significantly helps improve household income, but does not help to improve household consumption. The major barriers include the time spent to get to the nearest bank branch, banking support services provided to clients and the transparency of household poverty status assessment.Research limitations/implicationsData are collected in three years and the number of the observations is limited to 300 households.Practical implicationsThe VBSP preferential credit may need to be modified to significantly help reduce poverty and the VBSP and involved parties may need to eliminate the barriers so that the poor can have a better access to the credit.Social implicationsThe VBSP preferential credit is one of the reasonable sources that can help eliminate poverty though increasing household income.Originality/valueThe VBSP preferential credit can help increase household income, but does not really help improve household consumption due to the small volume of loans. In addition, banking support services and the household poverty assessment are seen as barriers to the access of the poor.

The modern pace of development and perspectives of horticulture in Azerbaijan

The Republic of Azerbaijan has all the conditions, both natural and socio-economic, for the development of horticulture. Over the last decade, the gross harvest of vegetables has been growing steadily. By 2018, it was 1522 thousand tons. The yield of vegetables has also grown in the indicated period from 14.7 to 21.9 t/ha. Vegetables occupy 4800 ha of a protected ground. The production of greenhouse vegetables targets the Russian market. The bottleneck of this sector is the breeding of vegetable seeds. This market, with a capacity of almost 20 million Euro, is occupied by foreign companies. At the same time, agricultural producers get help from the state in the form of subsidies, preferential credits, and full tax exemption. The research in the sector is also developing. We can note such possible developments as the renovation and outfitting of the Research Institute for Horticulture as well as the training of horticulturists in the Azerbaijan State Agricultural University. The further development of the sector continues in the way of the intensification and biologization of production, the improvement of the range and quality of products.

THE EU ECONOMY MANAGEMENT SYSTEM IN CONDITIONS OF ECONOMIC CRISIS. IRELAND’s CASE

In 2008 the world faced a powerful economic crisis, which led to significant problems in the EU. Some states, such us Portugal, Italy, Ireland, Greece and Spain, were on the verge of default. In such conditions the EU had to take appropriate measures to save European countries. The author reviewed the measures which concerned Ireland. At the beginning of the century Irish economy showed rapid growth. But in 2010 the default threatened “The Celtic tiger”. It was conditioned by the collapse of mortgage landing system and the rapid outflow of foreign capital. As far as Ireland participates in the euro zone the other European countries are interested in the stabilization of Ireland’s economy. All measures of saving Ireland’s economy could be divided to two groups. The first group includes the measures taken by the government of Ireland. This is state financing of bank sphere, which was done without being agreed with the EU (moreover, the European council reacted negatively), and changing of tax rate approved by the EU. The second group is represented by the measures of European institutes. It includes preferential credits and suppression of sanctions for violation of Maastricht criterion in exchange for austerity budget. In Ireland’s case such policy doesn’t seem really effective. The level of Ireland’s budget deficit is more than 3 % of GDP and its current economic growth does not permit to redeem the loans. Economic problems provide political instability, that’s why Ireland’s government cannot elaborate long-term financial policy. Though European institutes managed to find consensus between different national interests, the EU needs no less than 15 years to return to pre-depression economic level.

The Impact of the Vietnam Bank for Social Policy Loans on the Ability to Escape Poverty in Poor Households in Trang Bom District, Dong Nai Province

Credit policy is an important component of Vietnam's national program of sustainable poverty reduction. In the 2011 - 2015 period, the Vietnam Bank for Social Policy implemented many preferential credit policies at sub-national levels. This study adopts a binary logistic regression model to evaluate the impact of the Vietnam Bank for Social Policy’s loans on poor and near poor households in Trang Bom district, Dong Nai province in the above-mentioned period. The research results indicate that the Bank's loans have a significant and positive influence on poverty reduction.