Decision No. 32/2007/QĐ-TTg On providing loans for production development to households of ethnic minority groups in particularly difficult areas

Pursuant to …;

Regarding lending capital for production development to households

 of particularly disadvantaged ethnic minority groups

_________________

PRIME MINISTER

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

Considering the proposal of the Minister, Chairman of the National Ethnic Minorities Committee,

DECISION:

Article 1. Implement lending capital to households of particularly disadvantaged ethnic minorities to develop production, stabilize living conditions, and quickly overcome poverty.

1. Borrowers

Households of ethnic minorities (including households where either spouse is an ethnic minority) residing in communes (communes, wards, towns) located in difficult areas as defined in Decision No. 30/2007/QD-TTg dated March 5, 2007 of the Prime Minister on the list of administrative units in difficult areas, meeting all three criteria:

 a) Having an average monthly income per capita below VND 60,000;

 b) The total value of household assets does not exceed VND 3 million (excluding the value of land use rights, the value of huts on mountain fields, houses supported by the state and organizations);

 c) Having production directions but lacking or having no production capital.

2. Principles of lending

 a) The assessment of particularly disadvantaged ethnic minority households shall be conducted based on public and democratic review at the grassroots level, ensuring the correct target group; lists are compiled by commune; annually, these lists are reviewed to update and remove households that no longer qualify;

 b) Lending must be based on specific production plans and commitments made by each household or group of households, linked with guidance from authorities and political-social organizations at various levels; priority is given to households with greater difficulties;

 c) The State Bank of Vietnam implements lending and may delegate part of this responsibility to grassroots-level political-social organizations for lending and debt recovery.

3. Implementation period for phase 1 from 2007 to 2010.

In 2010, a summary and evaluation of results will be conducted, followed by adjustments and supplements to the policy to suit subsequent phases.

Article 2. Main content of the lending policy

1. Conditions for receiving loans

 a) Households of particularly disadvantaged ethnic minorities as stipulated in Clause 1, Article 1 of this Decision, who have legal residence and are included in the list established by the Commune People's Committee and approved by the District People's Committee;

 b) Having a plan for using borrowed capital for production and business activities confirmed or assisted in preparation by the local authority and political-social organizations of the village or hamlet;

2. Forms and amounts of loans

 a) May borrow once or multiple times;

 b) The total amount borrowed in multiple instances shall not exceed VND 5 million per household; no collateral is required, and administrative fees for borrowing procedures are waived.

For households requiring additional capital beyond the specified limit, the policy for lending to poor households as stipulated in Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy targets shall apply.

3. The loan term is determined based on the purpose of the borrowed capital, the borrower's ability to repay, and is set by the State Bank of Vietnam. If the loan repayment deadline is reached and the borrower still qualifies as a particularly disadvantaged household and requires continued use of the capital, the State Bank of Vietnam will consider extending the loan term.

4. The interest rate for loans is 0%.

5. Risk management

In cases where households encounter risks due to natural disasters, fires, epidemics, or other unforeseeable difficulties and cannot repay their debts, the Commune People's Committee will prepare a Record of Confirmation and send it to the State Bank of Vietnam at the district level for consolidation and reporting to the District People's Committee for approval, then forwarded to the Provincial State Bank for consolidation and submitted to the Provincial People's Committee for consideration and decision to write off the debt.

Article 3. Regarding sources of capital

1. For regions unable to balance their budgets: the central government budget will allocate funds to the State Bank of Vietnam to implement lending according to this Decision.

2. For regions able to balance their budgets: the implementation costs will be included in the regional budget. Annually, the People's Committees at all levels will allocate this funding in the regional budget draft for approval by the People's Councils and transfer to the State Bank of Vietnam for lending.

Article 4. Implementation

1. The Ministry of Ethnic Affairs is responsible for:

 a) Leading and coordinating with relevant ministries, agencies to issue Circulars guiding the implementation of this Decision;

b) Leading annual reviews, supplements, and planning of capital needs, submitting them to the Ministry of Planning and Investment and the Ministry of Finance for inclusion in the national budget draft; for 2007, the two ministries of Planning and Investment and Finance will seek funding sources and propose to the Prime Minister for consideration and decision;

 c) Leading and coordinating with relevant ministries and agencies to inspect, supervise the implementation of the borrowing policy, and compile reports annually to the Prime Minister.

2. The Social Policy Bank:

 a) Responsibilities:

- Guiding the lending process and procedures to ensure simplicity, clarity, and ease of implementation; implementing lending, debt recovery, and advising local People's Committees on risk management;

- Preparing disbursement progress plans and sending them to the Ministry of Finance (for concurrent submission to the Ministry of Planning and Investment and the Ministry of Ethnic Affairs for coordination);

- Reporting quarterly on the implementation results to the Prime Minister (for concurrent submission to the Ministry of Ethnic Affairs, the Ministry of Planning and Investment, and the Ministry of Finance).

 b) Benefits: receiving a subsidy for management costs equal to 0.3% of the average annual outstanding debt.

3. The Ministry of Planning and Investment is responsible for: leading and coordinating with the Ministry of Finance and the Ministry of Ethnic Affairs to develop capital plans and submit them to the Prime Minister.

4. The Ministry of Finance is responsible for: allocating capital and management costs to the State Bank of Vietnam according to the implementation schedule.

5. The Provincial People's Committee is directly and comprehensively responsible for directing and organizing lending and debt recovery in the locality, specifically:

 a) Elaborating guidance documents in line with local circumstances (if necessary);

 b) Directing the integration of funds for implementing other policies in the area (Program 134, Program 135, price and freight subsidies, agricultural and forestry promotion policies, etc.) to enhance the effectiveness of capital usage and minimize risks.

c) Assign responsibilities to provincial agencies and units (Departments, bureaus, sectors, organizations...) to carry out tasks related to organizing guidance for borrowing households on how to operate businesses and effectively use borrowed capital, thereby repaying debts to the Social Policy Bank; the local ethnic affairs agency shall be the permanent body assisting all levels of People's Committees in implementing this loan policy.

d) Issue decisions to write off debts based on the proposal of the People's Committee of the district submitted by the Branch of the Social Policy Bank in the province.

đ) Inspect and evaluate the implementation of lending and the use of capital at the local level and report to the Ethnic Committee as prescribed.

6. The People's Committee of the district shall be responsible for:

a) Directing the People's Committee of the commune and supporting the Social Policy Bank in organizing lending and debt recovery;

b) Approving the list of beneficiaries and the scope of borrowing annually for each commune to report to the People's Committee of the province;

c) Reviewing reports on risks in the use of borrowed capital from communes sent to the Branch of the Social Policy Bank in the province for consolidation and submission to the People's Committee of the province to issue decisions on handling;

d) Reporting periodically every six months on the results of implementation to the People's Committee of the province.

7. The People's Committee of the commune shall be responsible for:

a) Widely disseminating to the entire population the regulations and guidelines for lending to households of particularly disadvantaged ethnic minorities; organizing public reviews, prioritizing, and compiling lists of beneficiaries annually to submit to the People's Committee of the district for approval, and assigning individuals and organizations to directly assist and guide households of particularly disadvantaged ethnic minorities on how to operate businesses and reduce poverty, to be submitted to the People's Committee of the district for approval;

b) Supporting the Social Policy Bank in disbursing funds; regularly monitoring, inspecting, urging, and assisting households during the process of using capital and repaying loans;

c) Directing the Steering Committee for Poverty Alleviation Programs at the commune level to coordinate with political and social organizations to supervise the review of households of particularly disadvantaged ethnic minorities eligible for loans to ensure democracy and transparency, confirming lists of borrowing households; coordinating with lending organizations and savings and credit groups to inspect the use of borrowed capital and urge the collection of debts;

d) Reporting periodically every six months on the results of implementation to the People's Committee of the district.

Article 5. This Decision shall take effect fifteen days after its publication in the Official Gazette. Decree No. 166/2001/QĐ-UBDT dated September 5, 2001, issued by the Minister and Head of the Ethnic Minorities and Mountainous Areas Committee regarding the issuance of criteria for particularly disadvantaged ethnic minority households, and Circular Joint No. 912/2001/TTLT/UBDTMN/BTC/BKHĐT dated January 16, 2001, jointly issued by the Ethnic Minorities and Mountainous Areas Committee, Ministry of Finance, and Ministry of Planning and Investment guiding the implementation of support policies for particularly disadvantaged ethnic minority households, are hereby abolished.

Article 6. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of Provincial People's Committees, Chairmen of the Management Board, and General Directors of the Social Policy Bank are responsible for enforcing this Decision./.