Chương 1 Nghị định 78/2002/NĐ-CP: Những quy định chung

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.

Article 2.- Poor people and other policy beneficiaries that may borrow preferential credit capital include:

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.-

1. To set up the Social Policy Bank so as to provide preferential credits for poor people and other policy beneficiaries on the basis of reorganizing the Bank for the Poor, which was set up under the Vietnam State Bank Governor’s Decision No.230/QD-NH5 of September 1, 1995.

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.