Tiếng Việt| THE GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
| No: 78/2002/ND-CP | Hanoi, October 04, 2002 |
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:
...
...
...
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.
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.
...
...
...
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.
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 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.
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;
...
...
...
5. Savings deposits of poor people.
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 12.- Other capital sources.
...
...
...
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.
...
...
...
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.
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
...
...
...
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 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:
...
...
...
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.
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.
...
...
...
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.
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.
...
...
...
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.
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.
1. Draw up lists of poor households according to poverty standards promulgated by the Ministry of Labor, War Invalids and Social Affairs.
...
...
...
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.
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.
Article 29.- This Decree takes effect 15 days after its signing.
...
...
...
ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai