THE
GOVERNMENT
-------
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
------------
|
No:
78/2002/ND-CP
|
Hanoi,
October 04, 2002
|
DECREE
ON CREDIT FOR POOR PEOPLE AND OTHER POLICY BENEFICIARIES
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on
Organization of the Government;
Pursuant to the December 12, 1997 Credit Institution Law;
Pursuant to Resolution No.31/1999/QH10 of the Xth National Assembly, 6th
session;
At the proposals of the State Bank Governor, the Minister of Finance, the
Minister of Planning and Investment, the Minister of Labor, War Invalids and
Social Affairs, the Minister of the Interior and the Minister-Director of the
Government Office,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Credit for
poor people and other policy beneficiaries means the use of State-mobilized
financial sources to provide preferential loans for poor people and other
policy beneficiaries in service of production, business, job creation and life
improvement, thereby contributing to the implementation of the national target
program on hunger elimination and poverty alleviation, and social stability.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. Poor households;
2. Difficulty-hit pupils and students, who are
studying in universities, colleges, intermediate vocational training or
job-teaching schools;
3. Subjects that need loan capital for job
creation under Resolution No.120/HDBT of April 11, 1992 of the Council of
Ministers (now the Government).
4. Policy beneficiaries who go to labor abroad
for definite terms;
5. Economic organizations and production and/or
business households in islands, mountainous regions No.II or III and those
covered by the Program on socio-economic development of mountainous, deep-lying
and remote areas meeting with exceptional difficulties (hereinafter called
Program 135);
6. Other subjects as decided by the Prime
Minister.
Article 3.- Poor people
and other policy beneficiaries (hereinafter called borrowers), when borrowing
capital under the provisions of this Decree, shall not have to mortgage their
properties, except for economic organizations being subjects defined in Clauses
3 and 5, Article 2 of this Decree. Particularly for poor households, they shall
be exempt from administrative procedure fee when borrowing capital.
The loan security for economic organizations
defined in Clauses 3 and 5, Article 2 of this Decree shall comply with the
regulations of the Managing Board of the Social Policy Bank.
Article 4.-
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. The Social Policy Bank shall operate for
non-profit purposes, have its solvency assured by the State and its compulsory
reserve rate of 0% (zero percent); shall not have to participate in deposit
insurance and shall be exempt from taxes as well as other State budget
remittances.
3. The Social Policy Bank shall perform the
following operations: mobilizing capital, lending, providing payment and
treasury services and receiving entrusted preferential loan capital from local
administrations, economic organizations, socio-political organizations,
associations, societies, non-governmental organizations as well as individuals
inside and outside the country for investment in socio-economic development
programs and projects in localities.
4. The Social Policy Bank shall have the uniform
management and administration apparatus throughout the country; be a legal
person, have its charter capital, properties, seal and transaction system from
central to local levels.
5. The Social Policy Bank shall be managed by
its Managing Board, which has its representative boards in provinces,
centrally-run cities, urban districts, rural districts, provincial towns and
provincial capitals.
6. The Social Policy Bank shall be run by its
general director.
Article 5.- The Social
Policy Bank shall provide loans by the mode of entrusting them to credit
institutions or socio-political organizations under entrustment contracts, or
directly for the borrowers.
The loan provision for poor households shall be
based on the results of discussion and selection by savings and
capital-borrowing groups, which shall be set up by socio-political
organizations or population communities at their own will in the communes
administrative territories and approved in writing by the commune-level
People’s Committees. The savings and capital-borrowing groups shall operate
under the guidance of the Social Policy Bank.
Article 6.- The
financial, wage and allowance regimes for officials and employees as well as the
setting up and use of funds, of the Social Policy Bank, shall be decided by the
Prime Minister.
Chapter II
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 7.- State budget
capital sources
1. Charter capital;
2. Loan capital for hunger elimination, poverty alleviation,
job creation and implementation of other social policies;
3. Annually, the People’s Committees at all
levels are allowed to deduct part of the revenue surplus and expenditure
savings of their budgets to increase the loan capital sources for poor people
and other social policy beneficiaries in their respective localities.
4. ODA capital assigned by the Government.
Article 8.- Mobilized
capital
1. Interest-bearing deposits, received from
domestic and foreign organizations and individuals within the approved annual
plans;
2. State-run credit institutions shall have to
maintain at the Social Policy Bank a deposit balance equal to 2% of the balance
of their capital sources mobilized in Vietnam dong by December 31 of the
preceding year. The change in the above-mentioned deposit balance rate shall be
decided by the Prime Minister. The State-run credit institutions deposits at
the Social Policy Bank shall bring in interests to be calculated according to
the annual average interest rate for mobilized capital sources of credit
institutions plus (+) the reasonable mobilization charge as agreed upon by the
two parties;
3. Interest-free voluntary deposits of
organizations and individuals at home and abroad;
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
5. Savings deposits of poor people.
Article 9.- Borrowed
capital
1. Borrowings from financial and credit
institutions at home and abroad;
2. Borrowings from postal savings and Vietnam
Social Insurance;
3. Borrowings from the State Bank.
Article 10.-
Non-refundable capital voluntarily contributed by individuals, economic
organizations, financial and credit institutions, socio-political
organizations, associations, societies and non-governmental organizations
inside and outside the country.
Article 11.-
Preferential loan capital entrusted by local administrations, economic
organizations, socio-political organizations, associations, societies,
non-governmental organizations and individuals inside and outside the country.
Article 12.- Other
capital sources.
Chapter III
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 13.-
Capital-borrowing conditions
1. For borrowers being poor households, they
must have lawful residence addresses and be named on the lists of poor
households, which shall be decided and certified by the commune-level People’s
Committees according to the poverty standards promulgated by the Ministry of
Labor, War Invalids and Social Affairs after they are discussed and selected by
savings and capital-borrowing groups;
2. Borrowers being other policy beneficiaries
shall comply with the State�s current regulations
and the provisions of this Decree.
Article 14.- Loan
capital shall be used for the following purposes:
1. Poor households; production and/or business
households in islands, mountainous regions No.II and III and Program
135-covered areas, shall use loans for:
a/ Procuring materials and supplies, plant seeds
and animal breeds; and paying for production and business services;
b/ Contributing capital to the execution of
production and/or business cooperation projects already approved by competent
authorities;
c/ Partly meeting their essential needs
regarding accommodation, lighting, clean water and learning.
2. Economic organizations in islands,
mountainous regions No.II and III and Program 135-covered communes shall use
loan capital to cover expenses for production and business under the programs
and projects already approved by competent authorities.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4. Borrowers being policy beneficiaries who go
to labor abroad for definite terms shall use loan capital to pay training fees,
service charges, deposits and airfares.
5. Borrowers being other subjects shall comply
with decisions of the Prime Minister.
6. The entrusted preferential loan capital shall
be used for purposes set by the entrusting party and inscribed in the
entrustment contract.
Article 15.- Credit
principles
1. Borrowers must use loan capital for the right
purposes stated in their borrowing applications;
2. Borrowers must repay both debt principals and
interests on schedule.
Article 16.- Lending
level
The lending level for each loan suited to each
subject borrowing preferential credit capital shall be decided and announced by
the Managing Board of the Social Policy Bank on the basis of the loan capital
demands and capital sources likely to be mobilized in each period.
Article 17.- Lending
terms, debt extension, overdue debt conversion
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. In cases where borrowers fail to repay debts
on schedule as already committed due to objective causes, they shall be
considered by the Social Policy Bank for debt extension.
3. In cases where borrowers use capital for
wrong purposes or refuse to repay their due debts though they are capable to do
so, their debts shall be converted into overdue ones. The lending organizations
shall coordinate with local administrations and/or socio-political
organizations in applying measures to recover debts.
4. The lending terms, debt extension and overdue
debt conversion shall be stipulated by the Managing Board of the Social Policy
Bank.
Article 18.- Lending
interest rate
1. The preferential lending interest rate shall
be decided by the Prime Minister in each period at the proposal of the Managing
Board of the Social Policy Bank and applicable uniformly throughout the
country, except for economic organizations being subjects defined in Clauses 3
and 5, Article 5 of this Decree, which may enjoy region-II or region-III interest
rate under decision of the Managing Board of the Social Policy Bank.
2. The overdue debt interest rate shall be equal
to 130% of the lending interest rate.
Article 19.- The Social
Policy Bank shall stipulate the lending order and procedures for each borrower,
ensuring the simplicity, clarity and easy implementation.
Article 20.- Credit
risks and handling thereof
1. Borrowers who fail to repay their debts due
to such objective causes as natural calamities, fires, epidemics, changes in State
policies or market price fluctuations shall be handled as follows:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
b/ In cases where such occur singly or locally,
the debts shall be extended or handled with the risk reserve fund of the Social
Policy Bank under decision of the Bank’s Managing Board.
2. For damage caused subjectively by borrowers,
entrusted organizations or officials or employees of the Social Policy Bank,
these subjects shall have to pay compensations and take responsibility therefor
before law.
Chapter IV
RESPONSIBILITIES OF
STATE MANAGEMENT AGENCIES
Article 21.- The Prime
Minister
1. To direct the Finance Ministry, the Ministry
of Planning and Investment and the State Bank to arrange capital sources for
the allocation of enough charter capital to the Social Policy Bank upon its
establishment, and the supplementation of its charter capital.
2. To direct the Finance Ministry and the
Ministry of Planning and Investment to plan the increase of State budget
capital sources so as to provide credits for poor people and other policy
beneficiaries according to the annual plans.
3. To decide on the use and transfer of the
Government’s ODA and foreign loan capital sources reserved for credits to be
provided for poor people and other policy beneficiaries.
4. To decide on bond issuance with the
Government guarantee in order to mobilize capital for the Social Policy Bank.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 22.- The
ministries, the ministerial-level agencies and the agencies attached to the
Government shall, according to their respective jurisdictions, perform the
function of State management over operation of the Social Policy Bank and
create favorable conditions for its activities.
Article 23.- Basing
itself on the national target program on hunger elimination, poverty
alleviation and job creation, the Finance Ministry shall assume the prime
responsibility and coordinate with the Ministry of Planning and Investment in
incorporating the loan capital plan and deficit-offsetting plan in the annual
and five-year State budget estimates to be submitted to the Prime Minister.
Article 24.- Agencies
and organizations entitled to nominate their persons to participate in the
Managing Board of the Social Policy Bank shall, apart from the specialized
management functions according to their respective jurisdictions, have to
perform the following tasks:
1. To advise the Government and the Prime
Minister on basic undertakings, policies and solutions for the provision of
preferential credit for poor people and other social beneficiaries.
2. To direct the application of specialized
measures related to operation of the Social Policy Bank.
3. To nominate their competent representatives
to participate in the Managing Board of the Social Policy Bank.
Article 25.- The
presidents of the People’s Committees of the provinces and centrally-run cities
shall have the responsibility to:
1. Direct the provincial/municipal Services,
Departments, branches, local Steering Committees for hunger elimination and
poverty alleviation program and district-level People’s Committees to
coordinate with socio-political organizations in incorporating programs and
projects on production and/or business, restructuring, selection of plant
varieties and animal breeds, business lines, programs on technology transfer,
industrial, agricultural, forestry and fishery promotion as well as market
guidance into the use of credit capital; combining economic programs with
infrastructure construction programs and socio-cultural programs so as to
support the borrowers in using loan capital for the right purposes, with
efficiency and at low risks.
2. Direct the implementation of resolutions of
the People’s Councils on the deduction of part of the annual local budget
revenue surplus and expenditure savings for transfer to the Social Policy
Bank’s branches in localities according to the provisions in Clause 3, Article
7 of this Decree.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4. Direct the entrusted organizations in
observing the credit policies for local borrowers, promptly handle violations,
commend and reward organizations and/or individuals that make contributions to
the Social Policy Bank’s operation.
5. Concentrate the local budgets capital sources
being lent to poor households and other policy beneficiaries defined in this
Decree, including the local funds of loans for hunger elimination and poverty
alleviation (if any), into the Social Policy Bank.
6. Within the scope of their respective tasks
and powers, create favorable conditions for the Social Policy Bank’s operation.
Article 26.- The
presidents of the district-level People’s Committees shall have the
responsibility to:
1. Direct district branches and Steering
Committees for hunger elimination and poverty alleviation programs to
coordinate with socio-economic organizations in well performing the propagation
and mobilization task and creating conditions for implementation of credit
policies for borrowers in their respective localities.
2. Direct the commune-level People’s Committees
to observe all regulations on setting up savings and capital-borrowing groups,
discussing and selecting borrowers, certifying lists of poor households that
fully meet conditions for loan provision, inspecting and supervising the use of
loan capital, debt repayment and loan interest payment by borrowers.
3. Decide on the setting up and supervise
operation of the representative boards of the Managing Board according to the
Organization and Operation Charter of the Social Policy Bank.
Article 27.- The
presidents of the commune-level People’s Committees shall have the
responsibility to:
1. Draw up lists of poor households according to
poverty standards promulgated by the Ministry of Labor, War Invalids and Social
Affairs.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. Organize and direct the commune-level
Steering Committees for hunger elimination and poverty alleviation programs to
coordinate with the socio-political organizations in supervising the discussion
and selection of poor households and other policy beneficiaries entitled to
borrow capital, ensuring democracy and publicity; certify lists of poor
households to borrow capital; coordinate with lending organizations, savings
and capital-borrowing groups in inspecting the use of loan capital and urging
debt recovery.
4. Comment on the borrowers applications for
debt extension and risk handling.
5. Coordinate with the district-level functional
departments and branches, socio-political organizations, financing
organizations and lending organizations in opening classes to provide guidance
on cultivation, husbandry and processing techniques as well as knowledge about
markets..., and the Social Policy Bank’s regulations on capital borrowing and
debt repayment.
Article 28.-
Organizations and individuals that record achievements in creating capital
sources, well observing the lending regulations, thus bringing about practical
efficiency shall be commended and/or rewarded.
Annually, the Managing Board and the
representative boards of the Managing Board of the Social Policy Bank at all
levels shall consider and propose commendation and reward in appropriate forms.
Chapter V
IMPLEMENTATION PROVISIONS
Article 29.- This
Decree takes effect 15 days after its signing.
Article 30.- The
ministers, the heads of the ministerial-level agencies, the heads of the
agencies attached to the Government and the presidents of the People’s Committees
of the provinces and centrally-run cities shall have to implement this Decree.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai