Decision No. 319/QD-TTg on credit funds for students according to Decision No. 157/2007/QD-TTg.

 Pursuant to …;

On the credit fund for students and trainees pursuant to Decision No. 157/2007/QĐ-TTg

____________

PRIME MINISTER

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

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 Decision No. 157/2007/QĐ-TTg dated September 27, 2007 of the Prime Minister on credit for students and trainees;

Considering the proposal of the Minister of Finance and the conclusion of the meeting of the Government's Standing Committee on March 14, 2008,

DECISION:

Article 1. Focus on mobilizing approximately VND 30,000 to 35,000 billion to establish a revolving fund for a five-year study cycle (on average, one cycle is five years including four years of study and one year of grace period) to provide loans to students and trainees from difficult backgrounds under Decision No. 157/2007/QĐ-TTg dated September 27, 2007 of the Prime Minister on credit for students and trainees (hereinafter referred to as Program 157), aiming to bring the loan rate for this program to about 30% of the number of students and trainees enrolled each year.

Article 2.The Ministry of Finance shall proactively allocate sources from government bond issuance, temporary advances from idle funds of the State Treasury, and other lawful sources to ensure sufficient provision to the Social Policy Bank for one cycle of student and trainee loans with the requirement to minimize the lowest level of budget subsidy.

Article 3. The Social Policy Bank shall be responsible for recovering the loaned capital in the initial cycle to create a revolving fund for subsequent cycles. In cases where the revolving fund capital does not meet the demand for capital according to the regulations in subsequent cycles, the Social Policy Bank shall be responsible for organizing the issuance of government bonds and mobilizing other sources of capital from the community, educational funds, individuals, and economic and social organizations both domestically and internationally to make up the shortfall.

Article 4. The Ministry of Planning and Investment shall take the lead and coordinate with the State Bank and the Ministry of Finance to incorporate the credit plan of Program 157 into the socio-economic development plan and the interest subsidy plan (if any) into the annual state budget estimate for approval by the Government and the National Assembly.

Article 5. The Ministry of Labor, Invalids and Social Affairs shall guide the criteria for determining poor households, low-income households, and households facing sudden financial difficulties as stipulated in Article 2 of Decision No. 157/2007/QĐ-TTg dated September 27, 2007 of the Prime Minister; at the same time, coordinate with the Ministry of Education and Training to determine the number of students and trainees eligible for loans, providing information to the Social Policy Bank as a basis for lending.

Article 6. The Ministry of Finance shall have the following responsibilities:

1. Based on fluctuations in living costs and the capacity of the revolving fund, calculate and submit to the Prime Minister for consideration the adjustment of the maximum loan amount prescribed in Decision No. 157/2007/QĐ-TTG dated September 27, 2007 of the Prime Minister on credit for students and trainees.

2. Based on the annual plan and the disbursement plan for each semester of the Social Policy Bank, transfer funds to the Social Policy Bank for the initial loan cycle as prescribed in Article 2 of this Decision (approximately VND 6,500 to 7,000 billion per year).

Article 7. The People's Committees of provinces and centrally-administered cities shall direct the People's Committees of communes to verify the correct loan recipients, supervise the use of borrowed funds, and monitor the repayment of loans by borrowers in accordance with the regulations.

Article 8. Organizations entrusted with lending shall be responsible for coordinating with the Social Policy Bank and local authorities to fully and promptly implement the entrusted procedures.

Article 9. This Decision takes effect from the date of signature.

Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of the Provincial People's Committees, Chairmen of the Management Board, and General Directors of the Social Policy Bank are responsible for implementing this Decision./.