Circular No. 104/2001/TT-BTC guides the amendment of Point 1, Part IV of Circular No. 85/1998/TT-BTC issued by the Ministry of Finance regarding the use of the social insurance fund for investment and lending. This provision aims to ensure safety, minimize risks, and increase the value of the fund.
Key points
- The Social Insurance of Vietnam may use idle funds from the social insurance fund for investment or lending in the following forms: prioritizing loans to the state budget, purchasing treasury bills/bonds issued by the State Treasury and state commercial banks, lending to the Development Support Fund and state commercial banks, investing in large state-owned projects/businesses.
- For loans under one year → apply the interest rate of demand deposits of commercial banks.
- For loans of one year or more → apply the interest rate prescribed by the Prime Minister, or follow the interest rate of the Development Support Fund's loan with the same term if the Prime Minister has not prescribed.
- Idle funds from the social insurance fund must be prioritized for the above purposes and must ensure safety, minimizing risks to the lowest extent possible.
- Investment or lending requires approval from the Prime Minister for large projects/businesses.
🌐 Social impact of this document
- Positive impact: Enhance the efficiency of social insurance fund usage, ensuring safety and increasing its value.
- Negative impact: It could impose a burden on the state budget if borrowing is not strictly managed.
❓ Frequently asked questions
How can the social insurance fund utilize its idle funds?
The Social Insurance of Vietnam may use idle funds to prioritize loans to the state budget, purchase treasury bills/bonds issued by the State Treasury and state commercial banks, lend to the Development Support Fund and state commercial banks, invest in large state-owned projects/businesses approved by the Prime Minister.
What is the interest rate applied to loans under one year?
The interest rate applied to loans under one year is the interest rate of demand deposits of commercial banks.
If the Prime Minister has not prescribed the interest rate, how will the interest rate for loans of one year or more be applied?
If the Prime Minister has not prescribed the interest rate, the interest rate for loans of one year or more will be applied according to the interest rate of the Development Support Fund's loan with the same term.
Who needs to approve investment or lending?
Investment or lending into large state-owned projects/businesses requires approval from the Prime Minister.
When does this circular take effect?
This circular takes effect from December 1, 2001.
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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Number: 104/2001/TT-BTC |
Hanoi, December 26, 2001 |
CIRCULAR
Amending Point 1 of Part IV of Circular No. 85/1998/TT-BTC dated June 25, 1998 of the Ministry of Finance on guiding the Financial Management Regulation Social Insurance of Vietnam.
Pursuant to Decision No. 20/1998/QĐ-TTg dated January 26, 1998 of the Prime Minister on promulgating the Financial Management Regulation for the Social Insurance of Vietnam.
The Ministry of Finance guides the amendment and supplementation of Point 1 of Part IV of Circular No. 85/1998/TT-BTC dated June 25, 1998 of the Ministry of Finance on guiding the Financial Management Regulation for the Social Insurance of Vietnam as follows:
"1. The Social Insurance of Vietnam may use temporarily idle funds from the social insurance fund to implement measures for value preservation and growth. The use of the social insurance fund for investment must ensure safety, minimize risks to the lowest possible level, preserve value, and be economically and socially effective.
- Idle funds from the social insurance fund shall be prioritized for loans to the State budget to address urgent spending needs and shall be paid interest as follows:
+ For loans under one year, apply the interest rate for non-term deposits at commercial banks.
+ For loans of one year or more, apply the interest rate prescribed by the Prime Minister. In cases where the Prime Minister does not prescribe, it shall apply the interest rate for loans to the Development Support Fund (on the same term).
- Purchase treasury bills and bonds issued by the State Treasury and state-owned commercial banks.
- Lend to the Development Support Fund and state-owned commercial banks.
- Invest in certain projects and large state-owned enterprises approved and supported by the Prime Minister."
This Circular takes effect from December 1, 2001. Any difficulties encountered during implementation should be reported to the Ministry of Finance for timely resolution./.
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DEPUTY MINISTER DEPUTY MINISTER (Signed) Nguyễn Thị Kim Ngân |
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