Directive No. 05/2003/CT-TTg On directing the activities of the social policy bank

DIRECTIVE

On directing the operations of the social policy bank

Implementing Decision No. 131/2002/QĐ-TTg dated October 4, 2002 of the Prime Minister, the Social Policy Bank was established based on restructuring the Poverty Alleviation Bank and separating it from the Agricultural and Rural Development Bank of Vietnam system. Although the Social Policy Bank officially commenced operations from March 11, 2003, due to expanding the service target; simultaneously building the organizational structure, arranging staff, and establishing and perfecting operational mechanisms, the workload is very large requiring significant efforts.

To create conditions for the Social Policy Bank to stabilize its organization and operations, smoothly implement the 2003 plan throughout the system, the Prime Minister requests that all Ministries, People's Committees at all levels, and the Social Policy Bank immediately carry out the following tasks:

1. On handling the transfer of capital and policy targets from other organizations to the Social Policy Bank:

a) The Ministry of Finance shall take the lead, coordinate with relevant Ministries, organizations, and the Social Policy Bank to promptly establish a multi-disciplinary team as directed by the Prime Minister to inventory, assess capital, assets, and previous debts from units providing preferential loans now under the service targets of the Social Policy Bank; based on this, unify measures for handling and direct the completion of procedures for transferring capital to the Social Policy Bank according to the specified time frame.

b) During the period before the handover is completed, to ensure continuous policy lending without interruption or obstruction, it is required that Ministries, sectors, and related units at central and local levels continue to provide loans to poor households and policy targets normally according to current regulations until the handover is completed to the Social Policy Bank, specifically:

- The Ministry of Finance shall instruct the State Treasury system to continue performing loan disbursement and debt collection duties for job creation loan recipients until the multi-disciplinary team completes the inventory and assessment of capital and assets and finishes the handover process to the Social Policy Bank.

- The Ministry of Labor, Invalids, and Social Affairs shall organize the implementation of the loan allocation plan for job creation in 2003 and instruct localities to implement the job creation loan plan according to current regulations. The Social Policy Bank shall be responsible for disbursing job creation loans for the 2003 plan.

- The State Bank of Vietnam shall instruct commercial banks to conduct the inventory and assessment of capital, assets, and preferential loans given to policy targets now under the lending scope of the Social Policy Bank to complete the handover according to the specified time frame set by the Prime Minister. Specifically, for poor household loans and entrusted poor household loans, instruct the Agricultural and Rural Development Bank of Vietnam to continue providing poor household loans according to previous regulations of the Poverty Alleviation Bank until new regulations from the Social Policy Bank are issued, absolutely not allowing interruptions in poor household lending activities.

c) By June 30, 2003, if the inventory of capital, assets, and old debts has not been completed, the Social Policy Bank shall immediately implement new loans according to Decision No. 131/2002/QĐ-TTg dated October 4, 2002 of the Prime Minister. Units currently providing loans to policy targets now under the handover to the Social Policy Bank must proactively prepare full loan-related files and other necessary conditions to serve the inventory and assessment of capital and assets by the multi-disciplinary team.

2. On improving the organizational structure and personnel of the Social Policy Bank:

- The Social Policy Bank shall focus on directing the immediate formation of the organizational structure, arranging sufficient staff from central to local levels, especially branches and transaction offices at the grassroots level; to bring the entire Social Policy Bank system into stable operation as soon as possible.

- Commercial banks, particularly the Agricultural and Rural Development Bank of Vietnam, have the responsibility to transfer staff who participated in policy credit activities and prioritize some other capable, virtuous, and passionate staff for the Social Policy Bank.

- People's Committees at all levels shall create the most favorable conditions for the operation of the Social Policy Bank, including physical facilities such as office space, transportation, and working tools, especially branches and transaction offices in remote and difficult areas; while actively coordinating with the Social Policy Bank to direct the completion of organizational structure improvement and the completion of leadership position appointment procedures for branches and transaction offices of the Social Policy Bank in the locality within the shortest time possible

3. The Social Policy Bank shall urgently implement capital mobilization to expand lending to poor households and other policy targets; ensuring continuous policy credit without obstruction and loss to legitimate interests of the people. Promptly concretize government policies and mechanisms into specific business regulations, particularly loan mechanisms and interest rates for policy targets; entrustment loan mechanisms and agency agreements; promote the reception and effective use of transferred capital and assets; appoint sufficient qualified and morally upright leadership positions to fulfill assigned tasks, ensuring better service to policy targets.

The Social Policy Bank must strengthen inspection and supervision of lending activities at all levels to maximize effectiveness from the very first day of establishment; take the initiative to coordinate with relevant sectors, levels, economic organizations, political-social organizations, improve and expand savings and loan groups at the grassroots level, in accordance with the new borrowing targets.

4. Local authorities and political-social organizations at all levels shall be jointly responsible for lending to policy beneficiaries within their jurisdiction, ensuring that loans reach the poor and other policy beneficiaries, and achieving the goal that borrowers develop production, improve living standards, and repay bank loans. The Boards of Directors at all levels need to have an operational program, regularly inspecting the Social Policy Bank's lending activities and the use of funds by borrowers.

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and municipal People's Committees under the central government, and the Social Policy Bank are responsible for implementing this Directive.