Decision No. 525-TTg Regarding the establishment of a Bank for the Poor

Pursuant to …;

ON THE ESTABLISHMENT OF A BANK TO SERVE THE POOR  

PRIME MINISTER

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

To help the poor borrow capital to develop production and contribute to achieving the goal of eliminating hunger and reducing poverty.

At the proposal of the Governor of the State Bank and the Minister of the Government's Organization and Cadre Affairs Department.

DECISION:

Article 1: Permission is granted to establish a bank to serve the poor to help the poor borrow capital to develop production, solve living conditions, and contribute to achieving the goal of eliminating hunger and reducing poverty. The Governor of the State Bank is tasked with deciding on establishment and issuing the operating license.

The bank to serve the poor is a state credit organization operating throughout the country, having legal personality, registered capital, assets, balance sheets, seals, and its main office located in Hanoi City.

The organization and operation of the bank to serve the poor shall be specifically regulated in its charter.

Article 2: The bank to serve the poor has the function of tapping various sources of capital from organizations and individuals both within and outside the country, receiving state credit funds for the poor, and other permitted capital sources to establish a fund for the poor to borrow and implement the government's program for the poor.

The activities of the bank to serve the poor aim at the goal of eliminating hunger and reducing poverty, not for profit purposes, implementing the preservation of initial capital, capital development, and cost compensation.

The bank to serve the poor directly provides loans to poor households with labor capacity but lacking capital, allowing them to borrow capital to develop production without collateral, with repayment of the loan and according to the prescribed interest rate.

The bank to serve the poor is exempted from business income tax and profit tax to reduce loan interest rates for the poor. Unforeseeable risks during the operation of the bank to serve the poor will be compensated through a risk compensation fund according to the financial regulations of the Ministry of Finance. The above policies will be specified in specific documents of the government.

Article 3: The organization of the bank to serve the poor includes:

- Board of Directors.

- Operational management center.

1. Board of Directors: The Board of Directors is the management body of the bank to serve the poor, consisting of members who are authorized representatives of the Government Office, the State Planning Commission, the Ministry of Labor, Invalids and Social Affairs, the Ethnic Minorities Committee, the Ministry of Industry and Food, the Ministry of Finance, the State Bank, the Vietnam Women's Union, the Vietnam Farmers' Association appointed by their respective agencies; representatives of some domestic organizations contributing capital to the bank to serve the poor designated by the Governor of the State Bank and the Director of the Vietnam Agricultural Bank.

Members of the Board of Directors, Chairman of the Board of Directors, Vice Chairmen of the Board of Directors, are approved by the Prime Minister after being proposed by the Governor of the State Bank and agreed upon with the Minister of the Government's Organization and Cadre Affairs Department. The Board of Directors appoints the permanent representative of the Board of Directors and the chief auditor. In provinces, centrally governed cities, districts, towns, and provincial cities, the Board of Representatives of the Board of Directors of the bank to serve the poor is decided by the Chairman of the People's Council at the same level based on the guidance of the Board of Directors of the bank to serve the poor.

2. The operational management center has a General Director. Supporting the General Director are several Deputy General Directors and specialized departments. The General Director and Deputy General Directors are appointed by the Board of Directors and approved by the Governor of the State Bank. Operational management in provinces, centrally governed cities, districts, towns, and provincial cities is handled by the Vietnam Agricultural Bank.

Article 4: The Governor of the State Bank is responsible for issuing a decision to approve the Charter of the organization and operation of the bank to serve the poor after obtaining the Prime Minister's opinion; coordinating with relevant agencies to implement this decision.

The Minister of the State Planning Commission, in conjunction with the Minister of Finance, shall submit to the Prime Minister for approval the annual and five-year plans for state budget support capital for the bank to serve the poor.

The Minister of Labor, Invalids and Social Affairs, in coordination with the Minister of Agriculture and Industry, and other related agencies, shall announce standards for classifying the poor and impoverished areas at different times as a basis for the bank to serve the poor to provide loans.

The Minister of Finance shall submit to the government for consideration and resolution certain financial policies as stipulated in Article 2 of this Decision.

Article 5: The Vietnam Women's Union, the Vietnam Farmers' Association, and other people's mass organizations shall mobilize their members to implement the state policy of providing loans to the poor for production development to contribute to achieving the goal of eliminating hunger and reducing poverty; participate in government agencies in building policies; monitor and supervise the activities of the bank to serve the poor.

Article 6: This Decision takes effect from the date of issuance.

The Governor of the State Bank, Ministers, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairmen of Provincial People's Councils, Chairmen of the Board of Directors of the bank to serve the poor are responsible for implementing this Decision./.