Decision No. 28/2015/QĐ-TTg on credit for newly poverty-exited households

Pursuant to …;

On credit for households newly escaped from poverty

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

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010;

Pursuant to Resolution No. 76/2014/QH13 dated June 24, 2014 of the National Assembly on accelerating the implementation of the goal of sustainable poverty reduction by 2020;

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

At the proposal of the Governor of the State Bank of Vietnam,

The Prime Minister issues this Decision on credit for households newly escaped from poverty.

Article 1. Scope of Application

This Decision stipulates credit for households newly escaped from poverty at the Vietnam Bank for Social Policies for production and business development purposes with the aim of gradually stabilizing their lives and achieving sustainable poverty reduction.

Households newly escaped from poverty as defined in this Decision are families that were previously poor or near-poor households, whose average per capita income has exceeded the current legal standard for near-poor households after annual surveys and reviews, confirmed by the People's Committee of the commune, and have been out of the list of poor and near-poor households for a maximum period of three years.

Article 3. Sources of loan capital

The sources of loan capital shall be governed by Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy beneficiaries.

Article 4. Loan amount

The loan amount shall be agreed upon between the Vietnam Bank for Social Policies and households newly escaped from poverty but shall not exceed the loan amount for similar purposes serving production and business for poor households as prescribed during each period.

3. The overdue interest rate is 130% of the interest rate prescribed in Clauses 1 and 2 of this Article.

The loan term shall be agreed upon between the Vietnam Bank for Social Policies and households newly escaped from poverty based on the production and business cycle and the borrower's debt repayment capacity, but shall not exceed five years.

Article 6. Interest rate on loans

1. The interest rate on loans applied to households newly escaped from poverty shall be 125% of the interest rate on loans for poor households as prescribed during each period.

Article 10. Guarantee for loans

Article 7. Extension of debt and conversion of overdue debt

Extension of debt and conversion of overdue debt for debts of households newly escaped from poverty shall be carried out in accordance with the provisions for poor households under Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy beneficiaries.

Article 8. Loan application documents, procedures, and risk management

1. Loan application documents, procedures, and processes for households newly escaped from poverty shall be implemented similarly to those for poor households.

2. Risk management for debts of households newly escaped from poverty shall be carried out according to the risk management mechanism of the Vietnam Bank for Social Policies.

Article 9. Responsibilities of Related Units

1. Social Policy Bank:

a) To stipulate loan application documents, procedures, and processes for households newly escaped from poverty similarly to those for poor households, ensuring simplicity, clarity, and ease of implementation.

b) To implement loans for households newly escaped from poverty in accordance with this Decision.

c) To develop annual plans for funding to provide loans for policy credit programs, including loans for households newly escaped from poverty, and submit them for approval by competent authorities.

d) To report monthly (no later than the 15th day of the following month) to the State Bank of Vietnam on the results of implementing loans for households newly escaped from poverty.

2. The State Bank of Vietnam:

a) To take the lead and coordinate with relevant ministries and sectors in organizing and implementing credit for households newly escaped from poverty, and to propose solutions to address issues arising during implementation.

b) To organize evaluations, draw lessons learned, and report.

3. Ministry of Finance:

a) To take the lead and coordinate with relevant ministries and sectors to submit to the Prime Minister proposals regarding central government budget funds allocated to the Vietnam Bank for Social Policies for implementing credit programs, including credit for households newly escaped from poverty, as prescribed.

b) To coordinate with the State Bank of Vietnam in organizing and implementing credit for households newly escaped from poverty, and to propose solutions to address issues arising during implementation.

4. The Ministry of Labor - Invalids and Social Affairs:

a) To announce annually the number of households newly escaped from poverty and regularly provide the basis for provincial-level People's Committees to implement this Decision.

b) To coordinate with the State Bank of Vietnam in organizing and implementing credit for households newly escaped from poverty, and to propose solutions to address issues arising during implementation.

5. Relevant ministries and sectors shall cooperate in implementing this Decision based on their assigned functions and tasks.

6. Provincial-level People's Committees shall direct:

a) Commune-level People's Committees to compile lists of households newly escaped from poverty, aggregate and report to district-level People's Committees for approval, and serve as the basis for confirmation for the Vietnam Bank for Social Policies to provide loans in accordance with this Decision.

b) Functional agencies and People's Committees at all levels to coordinate with the Vietnam Bank for Social Policies in implementing this Decision.

Article 10. Provisions on implementation

2. The Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial-level People's Committees, Chairman of the Board of Directors, and General Director of the Vietnam Bank for Social Policies are responsible for enforcing this Decision./.