Decision No. 30/2015/QD-TTg on amending and supplementing certain articles of the Financial Management Regulation for the Social Policy Bank issued together with Decision No. 180/2002/QD-TTg dated December 19, 2002 of the Government Prime Minister.

Pursuant to …;

Regarding amendments and supplements to certain provisions of the Financial Management Regulation for the Social Policy Bank issued together with Decision No. 180/2002/QĐ-TTg dated December 19, 2002

of the Prime Minister

Decision No. 180/2002/QĐ-TTg dated December 19, 2002

of the Prime Minister

___________

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

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

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

Pursuant to Decree No. 57/2012/NĐ-CP dated July 20, 2012 of the Government on financial systems for credit organizations and foreign bank branches;

Pursuant to Decision No. 131/2002/QĐ-TTg dated October 4, 2002 of the Prime Minister on the establishment of the Social Policy Bank;

At the proposal of the Minister of Finance,

The Prime Minister promulgates this Decision amending and supplementing certain provisions of the Financial Management Regulation for the Social Policy Bank issued together with Decision No. 180/2002/QĐ-TTg dated December 19, 2002 of the Prime Minister.

Article 1. Amending and supplementing certain provisions of the Financial Management Regulation for the Social Policy Bank issued together with Decision No. 180/2002/QĐ-TTg dated December 19, 2002 of the Prime Minister as follows:

3. Article 8 shall be amended as follows:

"Article 3. The Social Policy Bank shall receive and manage government funds and local people's committee funds; implement tasks of mobilizing capital from domestic and foreign organizations and individuals to lend to poor people and other policy targets; be prioritized to borrow or temporarily use idle funds at low interest rates or without interest based on balancing sources from the state budget, ODA funds, aid sources, or other cheap sources."

2. Clause 1, Article 6 is amended and supplemented as follows:

"1. Capital and funds:

a) Charter capital provided by the state budget when established and supplemented during operation. The Social Policy Bank shall be supplemented with charter capital annually corresponding to the credit growth rate assigned by the Prime Minister;

b) Supplementary reserve funds, development investment funds, financial risk reserves, credit risk reserves, reward funds, welfare funds;

c) State budget capital (including central budget, local budget) for lending to eliminate poverty, create jobs, and implement other social policies;

d) Unallocated surplus income (if any);

đ) Non-repayable funding from domestic and foreign organizations and individuals;

e) Other capital (if any)."

3. Clause 1, Article 7 is amended and supplemented as follows:

"1. The operating capital of the Social Policy Bank shall be used to lend to poor people and other policy targets as prescribed by law.

Construction and fixed asset procurement for the operation of the Social Policy Bank shall be carried out according to the principle that the remaining value of fixed assets does not exceed 25% of the actual paid-up charter capital and in compliance with legal regulations applicable to state-owned enterprises holding 100% of the charter capital and in accordance with plans approved by the Board of Directors.

Procurement and provision of vehicles and travel means for work needs shall be implemented in accordance with regulations for state-owned companies as stipulated in the Prime Minister's Decision on standards, quotas, and management and use of travel means in state agencies, public service units, and state-owned companies."

4. Article 8 is amended and supplemented as follows:

"Article 8. Interest Rate Differential Subsidies and Management Fee Subsidies

1. Annually, the Social Policy Bank shall be responsible for balancing capital sources and capital requirements to implement loans to poor people and other policy targets according to plans approved by the Government and the Prime Minister. Loan mobilization with market interest rates must ensure the principle of only mobilizing when all non-interest-bearing or low-interest-bearing sources have been fully utilized.

2. Interest Rate Differential Subsidies

a) Annually, the Social Policy Bank shall receive interest rate differential subsidies from the State when implementing loan tasks for poor people and other policy targets as prescribed by law;

b) The annual level of interest rate differential subsidies shall be determined based on the difference between the average interest rate of various capital sources (taking into account the maximum cash reserve ratio as stipulated by the Ministry of Finance) and the interest rate for loans and outstanding loans to poor people and other policy targets as prescribed by law.

3. The State shall provide management fees for the Social Policy Bank calculated as a percentage (%) of the average outstanding balance (excluding overdue and written-off loans) of loans to poor people and other policy targets as prescribed. The Minister of Finance shall submit to the Prime Minister for consideration and decision on the management fee level for the Social Policy Bank for each period of three years or more. The management fee level for the Social Policy Bank shall be based on the results of implementing performance indicators assigned by the Government and the Prime Minister, financial conditions, state-prescribed standards and regulations, and actual needs, ensuring sufficient operational funds for the Social Policy Bank to operate proactively, taking into account the establishment of risk reserves as prescribed. In case of sudden changes, the Social Policy Bank shall report to the Ministry of Finance for submission to the Prime Minister for appropriate decision-making on management fees.

4. The Ministry of Finance shall provide detailed guidance on interest rate differential subsidies and management fee subsidies for the Social Policy Bank.”

5. Article 12 shall be amended and supplemented as follows:

"Article 12. Establishment and Handling of Credit Risk Reserve Fund

1. The Social Policy Bank may establish a Credit Risk Reserve Fund to handle credit risks related to loans to poor people and other policy targets as prescribed by law.

a) Sources of the Credit Risk Reserve Fund:

- General reserves recorded as operating expenses of the Social Policy Bank;

- Specific reserves established based on the annual revenue and expenditure balance of the Social Policy Bank.

b) The level of contribution to the Credit Risk Reserve Fund is as follows:

- The general reserve contribution rate is 0.75% of the outstanding loan balance excluding overdue and written-off loans at the time of establishing the reserve;

- The specific reserve contribution amount is decided by the Social Policy Bank based on the results of loan classification and its financial capacity.

c) The maximum balance of the Credit Risk Reserve Fund equals the total overdue debt and non-performing debt at the time of provision establishment. In cases where the balance of the Credit Risk Reserve Fund exceeds the required provision amount, the Social Policy Bank shall offset the excess balance to its income. In cases where the Credit Risk Reserve Fund is insufficient to cover the credit risk for the year, the Chairman of the Board of Directors shall report to the Ministry of Finance for consideration and decision by the Prime Minister.

2. The Credit Risk Reserve Fund may be used for the following purposes:

a) To write off bad debts according to the decision of the competent authority;

b) To handle unrecoverable debts according to the decision of the competent authority.”

6. Article 13 shall be amended and supplemented as follows:

Article 13. Income

1. The income of the Social Policy Bank includes:

a) Income from business operations:

- Interest income from loans to the poor and policy beneficiaries;

- Interest income from deposits;

- Income from agency services for lending to policy beneficiaries;

- Payment service and treasury income;

- Subsidized interest rate difference and management fee income provided by the state budget;

- Other business and service income.

b) Other income:

- Proceeds from asset liquidation and sale;

- Other income from operations.

2. The Social Policy Bank shall record receivables for the income items specified in Clause 1 of this Article. For interest income from loans to the poor and policy beneficiaries, the Social Policy Bank shall record actual income.

7. The title of Article 14 is amended and supplemented as follows:

"Expenses of the Social Policy Bank are the costs incurred during the course of operations, including:"

8. Point b and Point c of Clause 1 of Article 14 are amended and supplemented as follows:

"b) Expenses for service fees paid to organizations implementing entrusted lending to the poor and other policy beneficiaries. The level of service fee payment shall not exceed 0.125% per month based on the outstanding loan balance that earns interest, as agreed between the Social Policy Bank and the entrusted lending organization;

c) Expenses for entrusting fees paid to associations and commissions paid to savings and lending groups. The maximum total expense level shall not exceed 0.125% per month based on the outstanding loan balance that earns interest, with specific allocation ratios determined by the Social Policy Bank."

9. Article 15 is amended and supplemented as follows:

"1. The Social Policy Bank shall record income and expenses using the accrual accounting method, except for interest income from loans to the poor and other policy beneficiaries, which shall be recorded using the cash basis method. Five years after the effective date of this Decision, the Social Policy Bank shall report to the competent authorities for consideration and decision regarding the implementation of accrual accounting for interest income from loans to the poor and other policy beneficiaries. The Social Policy Bank shall be responsible under the law for the content and accuracy of all income and expenditure items and shall comply with regulations on invoice and accounting voucher systems.

2. In cases where switching from the cash basis to the accrual basis of accounting affects income and expenses, the Social Policy Bank shall report to the Ministry of Finance.

10. Clause 1 of Article 18 is amended and supplemented as follows:

"1. In cases where income exceeds expenses, after covering previous years' deficits (if any), it shall be distributed in the following order:

a) Provision of 5% into the supplementary capital reserve fund, with the maximum level of this fund not exceeding the capital reserve of the Social Policy Bank;

b) Provision of 10% into the financial reserve fund, with the maximum level of this fund not exceeding 25% of the capital reserve of the Social Policy Bank;

c) The surplus after covering previous years' deficits (if any) and subtracting the supplementary capital reserve fund and financial reserve fund provisions will be distributed as follows:

- Provision of 10% into the business development investment fund;

- Provision into the reward and welfare fund. The maximum level of these two funds shall not exceed three months' salary;

- Provision into the management staff bonus fund according to the general regulations applicable to state-owned limited liability companies, with annual classification for the Social Policy Bank conducted by the Ministry of Finance based on the completion of the annual operational plan approved by the Government, the Prime Minister, and the Board of Directors of the Social Policy Bank at the beginning of the year, including: credit growth ratio, debt recovery ratio, non-performing loan ratio, overdue loan ratio, and other indicators;

- The remaining amount after setting up the above funds shall be added to the business development investment fund.”

Article 2. Effective Date

This Decision takes effect from September 15, 2015.

This Decision shall take effect from the 2015 fiscal year of the Social Policy Bank.

This Circular takes effect from December 25, 2025/.

1. The Ministry of Finance shall be responsible for guiding the implementation of the Charter issued together with this Decision.

2. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally governed cities, Chairman of the Board of Directors, and General Director of the Social Policy Bank shall be responsible for enforcing this Decision./.