Decision No. 246/2006/QD-TTg On the establishment of the Cooperative Development Support Fund

 

Pursuant to …;

Regarding the establishment of the Cooperative Development Support Fund

PRIME MINISTER

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

Pursuant to the Law on Cooperatives dated November 26, 2003;

Pursuant to Decree No. 88/2005/NĐ-CP dated July 11, 2005 of the Government on certain support policies to encourage cooperative development;

At the proposal of the Minister of Finance,

Pursuant to …;

Article 1The Cooperative Development Support Fund shall be established to support activities for product innovation and development; technological and technical innovation and development; market development and expanded product consumption; construction and replication of new cooperative models and exemplary advanced cooperatives.

Article 2Legal status of the Cooperative Development Support Fund

1. The Cooperative Development Support Fund is a state financial organization. The Fund has legal personality, registered capital, its own balance sheet, seal, and bank accounts at the State Treasury and commercial banks. The Vietnam Union of Cooperatives is entrusted with managing and operating the Cooperative Development Support Fund.

2. Name: Cooperative Development Support Fund. English name: Co-operative Assistance Fund (CAF).

3. The headquarters of the Cooperative Development Support Fund is located in Hanoi.

Article 3Operation methods of the Cooperative Development Support Fund

1. To mobilize and accept voluntary contributions from cooperatives, cooperative unions, and domestic and foreign financial sources in accordance with Vietnamese laws to create funds for supporting cooperative and cooperative union development.

2. To support cooperative and cooperative union activities through the following methods:

c) Post-investment interest subsidy."

b) Supporting with repayable principal.

3. To receive and manage entrusted funds from domestic and foreign organizations and individuals to support investment or sponsorship for cooperative development activities.

4. To utilize idle funds not originating from the state budget to purchase government bonds in accordance with the law and the regulations on the organization and operation of the Cooperative Development Support Fund.

Article 4Scope of support provided by the Cooperative Development Support Fund

1. To support activities for product innovation and development, technological and technical innovation and development of cooperatives and cooperative unions.

2. To support organizational activities for market development and expanded product consumption for cooperatives and cooperative unions.

3. To support the construction, development, and replication of new cooperative and cooperative union models and exemplary advanced cooperatives.

Article 5Sources of funding for the Cooperative Development Support Fund

1. The registered capital of the Fund is one hundred billion Vietnamese dong provided by the state budget from the time the Fund officially commences operations. Adjustments and supplements to the registered capital of the Fund are decided by the Prime Minister based on proposals from the Vietnam Union of Cooperatives and the Ministry of Finance.

2. Operating funds from other sources:

a) Voluntary contributions from cooperatives and cooperative unions;

b) Voluntary contributions from domestic and foreign organizations and individuals;

c) Aid and sponsorship from domestic and foreign organizations and individuals;

d) Entrusted funds from domestic and foreign organizations and individuals for cooperative development;

đ) Funds from domestic and international programs and projects supporting cooperative and cooperative union development;

e) Other funds as prescribed by law.

Article 6The management and operational structure of the Cooperative Development Support Fund includes the Management Board, Supervisory Board, and operational management staff. The tasks and powers of the Management Board, Supervisory Board, and operational management staff of the Cooperative Development Support Fund are stipulated in the Charter of Organization and Operation of the Fund.

, Clause 1, Clause 2 Article 7a of this Regulation.The Management Board of the Cooperative Development Support Fund

1. The Management Board consists of five members: the Chairman of the Management Board is a leader of the Vietnam Union of Cooperatives; four members are representatives of the Ministry of Finance, the Ministry of Planning and Investment, the State Bank of Vietnam, and the Director of the Fund. The Chairman of the Vietnam Union of Cooperatives issues decisions on appointing and dismissing the Chairman and members of the Management Board of the Cooperative Development Support Fund.

2. The Management Board operates on a part-time basis and enjoys benefits as prescribed by the State.

Article 8The Supervisory Board of the Cooperative Development Support Fund

The Supervisory Board consists of three members. The Head of the Supervisory Board is appointed and dismissed by the Management Board of the Fund. Members of the Supervisory Board are decided by the Management Board upon the recommendation of the Head of the Supervisory Board.

Article 9Operational Management Staff of the Cooperative Development Support Fund

1. The operational management staff of the Cooperative Development Support Fund includes the Director, Deputy Directors, Chief Accountant, and assisting units.

2. The Chairman of the Vietnam Union of Cooperatives appoints and dismisses the Director of the Cooperative Development Support Fund.

3. Deputy Directors and Chief Accountants are appointed or dismissed by the Management Board of the Fund upon the proposal of the Director of the Cooperative Development Support Fund.

4. Assisting units of the operational management staff are established or dissolved by the Management Board of the Fund based on the proposal of the Director of the Cooperative Development Support Fund.

Article 10Financial principles for the activities of the Cooperative Development Support Fund

a) Loan interest rates must ensure coverage of management costs and risk prevention;

2. For the method of supporting with repayable principal:

a) In line with the financial resources of the Fund;

b) The maximum repayment period for the supported amount does not exceed three years;

c) The maximum support level is 80% of the actual cost.

3. For the lending method:

c) Maximum loan term is five years;

d) Loan security: In specific cases, the Cooperative Development Support Fund decides on the form of loan security and bears responsibility according to the law.

c) The maximum loan term is five years;

d) Loan guarantee: in specific cases, the Cooperative Development Support Fund decides the form of loan guarantee and must bear responsibility according to the law.

Article 11. Implementation Provisions

This Decision takes effect fifteen days after its publication in the Official Gazette.

2. The Chairman of the Vietnam Union of Cooperatives, the Chairman of the Management Board, and the Director of the Cooperative Development Support Fund are responsible for implementing this Decision.

3. The Ministry of Finance shall be responsible:

a) Approving the Charter of Organization and Operation of the Cooperative Development Support Fund consistent with this Decision and current state regulations;

b) Determining interest rates for loans suitable for each period;

c) Issuing financial management mechanisms and performing state management functions regarding finance for the Cooperative Development Support Fund.

4. The Ministry of Planning and Investment and the State Bank of Vietnam shall be responsible for state management of the Cooperative Development Support Fund in accordance with the provisions of the law.

5. The ministers, heads of ministerial-level agencies, heads of government agencies, chairpersons of provincial People's Committees under the central city, are responsible for implementing this Decision./.