Decision No. 51/1998/QĐ-TTg On establishing a training credit fund

Pursuant to …;
Regarding the establishment of the Education Credit Fund

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Government Decree No. 15/CP dated March 2, 1993 on the tasks, powers, and responsibilities of state management of ministries and ministerial-level agencies;

Considering the proposal of the Governor of the State Bank, the Minister of Finance, and the Minister of Education and Training;

DECISION:

Article 1. Establish the Education Credit Fund to provide loans with preferential interest rates to students and pupils currently studying at universities, colleges, vocational high schools, and vocational training institutions.

Entrust the State Bank to designate a state-owned commercial bank to manage the Education Credit Fund.

Article 2. The initial capital of the Education Credit Fund upon establishment is 100 billion VND, including the following sources:

The state budget allocates 30 billion VND.

The remainder will be contributed voluntarily by commercial banks and loans provided by the State Bank according to the designated objectives of the Government, along with contributions and support from organizations and individuals both domestically and internationally.

Annually, the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Education and Training, and the State Bank shall calculate the necessary additional funding from the state budget for the Education Credit Fund to cover the interest rate differential and risks associated with the fund, and submit this to the Prime Minister for decision.

Article 3. The maximum lending interest rate of the Fund shall be 50% of the ceiling for short-term lending interest rates or the average normal lending interest rate published by the State Bank. The specific interest rate shall be determined by the Governor of the State Bank based on consensus with the Minister of Education and Training. The maximum loan term is 15 years, with the period of study at school being the grace period. During the grace period, the borrower does not need to repay the principal or pay interest.

Article 4. Entrust the Governor of the State Bank to issue regulations governing the operation and lending procedures of the Education Credit Fund; simultaneously, coordinate with the Minister of Finance to establish financial management mechanisms for the Fund.

Article 5. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Article 6. The Governor of the State Bank, the Minister of Finance, the Minister of Education and Training, and the Minister of Planning and Investment are responsible for guiding and implementing this Decision; the Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, and Chairpersons of Provincial People's Committees directly under the Central Government are responsible for enforcing this Decision./.