Decision No. 131/2002/QĐ-TTg On the establishment of the Social Policy Bank

DECISION

Regarding the establishment of the Social Policy Bank

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

This Decision is based on Decree No. 63/1998/ND-CP dated August 17, 1998 of the Government on foreign exchange management and Decree No. 05/2001/ND-CP dated January 17, 2001 of the Government amending and supplementing certain provisions of Decree No. 63/1998/ND-CP dated August 17, 1998 of the Government on foreign exchange management;

Pursuant to Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy beneficiaries;

Considering the proposal of the Minister of Home Affairs, Governor of the State Bank of Vietnam, Minister of Finance, Minister of Planning and Investment, Minister of Labor, Invalids and Social Affairs, and Chairman of the Office of the Government.

 DECISION:

Article 1.Establish the Social Policy Bank to implement credit policies for the poor and other policy beneficiaries based on restructuring the People's Credit Bank established pursuant to Decision No. 230/QĐ-NH5 dated September 1, 1995 of the Governor of the State Bank of Vietnam.

The Social Policy Bank shall have a unified management and operation system nationwide, be a legal entity, have charter capital, seals, assets, and a transaction system from central to local levels. Its main office shall be located in Hanoi, the capital city.

Initial charter capital is 5,000,000,000,000 VND (five trillion VND) and will be supplemented appropriately according to operational requirements at different periods.

The organization and operations of the Social Policy Bank shall be regulated by this Decision and the Charter on the organization and operations of the Social Policy Bank approved by the Prime Minister.

The term of operation of the Social Policy Bank is 99 years.

Article 2. The Social Policy Bank may mobilize funds from domestic and foreign organizations and individuals, accept government and provincial people's committee funds to lend to the poor and other policy beneficiaries.

Article 3. The activities of the Social Policy Bank are not for profit purposes, and the State guarantees its payment capacity, with a zero percent (0%) mandatory reserve ratio, no need to participate in deposit insurance, exempted from taxes and other payments to the state budget.

Article 4.The organizational structure of the Social Policy Bank includes:

- Main office located in Hanoi, the capital city;

- Branches located in provinces and centrally-administered cities;

- Transaction offices located in districts and towns within provinces. Where necessary, district-level branches of the Social Policy Bank shall be established and decided upon by the Board of Directors of the Social Policy Bank.

Tasks, powers, and organizational structure of the main office, branches, and transaction offices shall be defined by the Board of Directors of the Social Policy Bank.

Article 5. Management and Operation of the Social Policy Bank

1. The management of the Social Policy Bank is the Board of Directors.

2. The operation of the Social Policy Bank is directed by the General Director.

Article 6.The Board of Directors of the Social Policy Bank

2. The term of office of the members of the Board of Directors of the Social Policy Bank is five years and can be reappointed.

3. The Prime Minister appoints, dismisses the Chairman, Vice Chairmen, Board Members, and General Director.

4. In provinces and centrally-administered cities; districts, counties, towns, and cities under provinces, representative councils of the Board of Directors shall be established, headed by the Chairman or Vice Chairman of the provincial people's committee at the same level. The Chairman of the provincial people's committee at the same level decides the personnel of the representative council of the Board of Directors.

5. The tasks and powers of the Board of Directors and representative councils at all levels shall be carried out in accordance with the Charter on the organization and operations of the Social Policy Bank.

6. The Board of Directors and representative councils at all levels may use the organizational structure and seals of the Social Policy Bank at their respective levels to perform their duties.

7. Part-time members of the Board of Directors and representative councils at all levels, grassroots-level officials, and other individuals working for the Social Policy Bank shall receive remuneration and other benefits as stipulated by the Ministry of Finance.

Article 7. The operation of the Social Policy Bank shall be managed by the General Director. The General Director is the legal representative of the Social Policy Bank. The Deputy General Directors assist the General Director.

The Chairman of the Board of Directors signs the appointment and dismissal of the Deputy General Directors.

The duties and powers of the General Director shall be implemented in accordance with the Charter on the organization and operation of the Social Policy Bank.

Article 8. The financial system, salary and allowances for officials and employees, and the establishment and use of funds of the Social Policy Bank shall be decided by the Prime Minister.

Article 9.

1. Ministries, ministerial-level agencies, and political-social organizations listed in Clause 1 of Article 6 of this Decision shall have the responsibility to nominate persons to participate in the Board of Directors of the Social Policy Bank.

2. The Ministry of Planning and Investment shall guide the registration of activities for the Social Policy Bank and coordinate with the Ministry of Finance to submit to the Prime Minister for approval of the Charter capital for the Social Policy Bank as stipulated in Article 1 of this Decision.

3. The Minister of Finance shall submit to the Prime Minister for issuance of the Financial Management Regulations for the Social Policy Bank, the loan capital plan, and the loss compensation plan in the annual State budget and five-year plan.

4. The Minister of Labor, War Invalids and Social Affairs shall submit to the Prime Minister for issuance of the salary and allowance regulations for officials and employees of the Social Policy Bank.

5. The Minister of Home Affairs shall submit to the Prime Minister for appointment and dismissal of the Chairman, Vice Chairmen, General Director, and members of the Board of Directors.

Article 10. This Decision takes effect from the date of signature, abolishing Decision No. 525/TTg dated August 31, 1995 of the Prime Minister, Decision No. 230/QĐ-NH5 dated September 1, 1995 of the Governor of the State Bank of Vietnam, and any provisions of related documents that conflict with this Decision.

Article 11. The Governor of the State Bank of Vietnam directs the Vietnam Agricultural Development Bank and the Poverty Service Bank to transfer the task of lending to poor households; hand over capital, assets, relevant documents, and current dedicated staff to the Social Policy Bank to ensure its commencement of operations from January 1, 2003.

The Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Agriculture and Rural Development, people's committees at all levels, and state-owned commercial banks shall be responsible for inventorying, evaluating capital, assets, and preferential loans to policy beneficiaries, and transferring them to the Social Policy Bank before June 30, 2003. Until the transfer is completed, these agencies and organizations shall continue to provide loans to policy beneficiaries according to current regulations.

Ministers, heads of ministerial-level agencies, heads of government agencies, chairpersons of provincial and centrally-administered city people's committees, and the Chairman of the Board of Directors of the Social Policy Bank are responsible for implementing this Decision./.