Financial Information

Between 2003 and 2009, FESR circulated its 1.2 Million USD principal as low-interest loans to more than 16,000 households (1 USD = 12,000 VND - 18,000 VND over the years). Repayment rates exceeded 90% and gross interest exceeded operating expenses by 20%. FESR absorbed the loss of capital due to inflation and non payments. The excess interest over expenses was used to maintain facilities, give scholarships to students and provide performance bonuses to staff.

Loans consist of three categories: Loans to the poorest of the poor are under 100 USD payable over 12 months, at an interest rate less than 0.2% per month, loans to small producers/manufacturers were between 100 USD and 200 USD payable in between 12 and 14 months, at an interest rate less than 1% per month and loans to small entrepreneurs were between 200 USD and 500 USD, payable in less than 12 months, at an interest rate between 1% and 1.5% per month.