Decision No. 54/2012/QD-TTg Issuing the Policy on Loaning Capital for Production Development for Particularly Difficult Ethnic Minority Households during the Period 2012-2015

Pursuant to …;

Issuing policies for loans to develop production for households of ethnic minorities in special difficulties during the period of 2012-2015

Policies for loans to develop production for households of ethnic minorities in special difficulties during the period of 2012-2015

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

At the proposal of the Minister, Head of the Committee for Ethnic Minorities;

The Prime Minister issues policies for loans to develop production for households of ethnic minorities in special difficulties during the period of 2012-2015,

Article 1. Scope of application

Implementing loans for households of ethnic minorities in special difficulties to develop production, stabilize living conditions, and achieve sustainable poverty reduction.

Households of ethnic minorities (including households where either the husband or wife is an ethnic minority) residing in communes (communes, wards, towns) within difficult areas as defined in Decision No. 30/2007/QĐ-TTg dated March 5, 2007 of the Prime Minister on issuing the list of administrative units within difficult areas, must meet the following two criteria:

1. Monthly average income per capita not exceeding 50% of the current poverty line standard for households.

2. Having production plans but lacking production capital.

Article 2. Implementation Principles

1. Transparency, democracy, and accuracy in identifying eligible recipients. Annual reviews should be conducted to update lists and remove those no longer in special difficulties.

2. Loans must be based on specific usage plans and commitments from each household, with guidance provided by local authorities and social-political organizations at all levels; priority should be given to households with greater difficulties in obtaining loans.

3. The State Bank of Vietnam shall implement lending and may delegate part of this responsibility to social-political organizations at the commune level for loan disbursement and debt recovery.

Article 3. Main policy contents

1. Conditions for receiving loans

a) Households of ethnic minorities in special difficulties as defined in Article 1 of this Decision, having legal residence, listed in the registry established by the People's Committee of the commune and approved by the People's Committee of the district;

b) Having production plans or needs for capital usage for production and business activities supported by local authorities and social-political organizations at the village level in establishing or confirming these plans;

c) Must use the funds for their intended purpose and may not deposit the borrowed funds in other banks.

2. Forms and amounts of loans

a) May borrow once or multiple times;

b) Total amount borrowed shall not exceed VND 8 million per household; no collateral is required for the loan, and administrative fees for borrowing procedures are waived.

3. Loan term

Based on the production and business cycle and the borrower's ability to repay, but not exceeding five years.

4. Debt management and extension

In cases where the loan repayment deadline has been reached, but the borrower still falls under the category of households in special difficulties and requires continued use of the loan, appropriate measures should be taken based on actual circumstances:

a) If the borrower remains in special difficulties and requires continued use of the loan, the repayment period may be extended, but not exceeding five years.

b) If the borrower has exited the category of households in special difficulties but has not yet escaped poverty according to the poverty standard and encounters temporary financial difficulties without sources to repay the debt, the repayment period may be extended, but not exceeding 2.5 years.

c) If the borrower has escaped poverty according to the poverty standard, they must fulfill their debt repayment obligations. In case the borrower fails to fulfill their debt repayment obligations, an overdue interest rate of 130% of the original loan interest rate will be applied.

5. Interest rate for loans is 0.1% per month, equivalent to 1.2% per year.

6. Risk management: For households encountering risks due to natural disasters, fires, epidemics, or other unforeseeable difficulties that prevent them from repaying the debt, risk management shall be handled according to the State Bank of Vietnam's regulations on managing risky debts.

7. Implementation period: 2012-2015

8. Management expenses: Each locality shall allocate management expenses from the local budget to implement this Decision annually. The amount allocated shall be 5% of the total central budget allocation.

Article 4. Sources of funds for implementation

1. For localities that have not yet achieved budget self-balancing

The central government budget shall allocate funds to the Vietnam Bank for Social Policies to implement lending activities pursuant to this Decision.

2. For localities that have achieved budget self-balancing

Implementation costs shall be included in the local budget. Each year, the People's Committees at all levels shall allocate these funds in the local budget draft, submit it for approval by the People's Councils, and transfer them to the Vietnam Bank for Social Policies for implementation.

State-owned enterprises that have been assigned by the Ministry of Agriculture and Rural Development to conduct offshore wind power project surveys before the effective date of this Circular shall continue to implement according to the assigned documents; any new matters arising after the effective date of this Circular shall be implemented in accordance with the provisions of this Circular.

1. The Ministry of Ethnic Affairs shall take the lead and coordinate with relevant ministries and sectors to guide and direct localities in implementing this Decision.

a) Issue Circulars guiding the implementation of this Decision.

b) Annually review and develop plans for capital needs, send them to the Ministry of Planning and Investment and the Ministry of Finance for consolidation into the state budget draft; monitor and supervise the implementation of loan policies and report to the Prime Minister; organize mid-term and final reviews of policy implementation as required and report to the Prime Minister.

2. The Ministry of Planning and Investment shall take the lead and coordinate with the Ministry of Finance and the Ministry of Ethnic Affairs to develop capital plans and submit them to the Prime Minister for approval.

3. The Ministry of Finance shall be responsible for allocating funds to the Vietnam Bank for Social Policies according to the plan approved by the Prime Minister.

4. The Vietnam Bank for Social Policies shall be responsible for:

a) Directing the process and procedures for lending to ensure simplicity, clarity, and ease of implementation; implementing lending, recovering loans, extending loan usage periods, and guiding risk management as prescribed.

b) Annually preparing plans for capital needs and submitting them to the Ministry of Ethnic Affairs for consolidation and submission to the competent authority for approval.

c) Reporting on the results of implementation every six months to the Ministry of Ethnic Affairs, concurrently sending reports to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Prime Minister.

5. The provincial People's Committee shall directly and comprehensively be responsible for directing and organizing lending and loan recovery in the locality, specifically:

a) Organizing and implementing this Decision at the local level;

b) Directing the integration of funding sources for other policies in the area to enhance the effectiveness of loan usage and minimize risks;

c) Assigning responsibilities to provincial agencies and units (departments, bureaus, offices, organizations...) to carry out tasks related to guiding households in effectively using borrowed funds and repaying loans;

Entrusting the local ethnic affairs agency as the permanent body to assist the People's Committees at all levels in organizing the implementation of this policy;

d) Inspecting and evaluating the situation of lending and capital usage in the locality and reporting to the Ministry of Ethnic Affairs every six months.

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

a) Directing the People's Committee at the commune level and supporting the Vietnam Bank for Social Policies in organizing lending and loan recovery;

b) Approving lists of beneficiaries in each commune as the basis for implementation and reporting to the provincial People's Committee;

c) Reporting on the results of implementation every six months to the provincial People's Committee.

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

a) Widely disseminating regulations and guidance on lending to households of particularly disadvantaged ethnic minorities, compiling beneficiary lists according to this Decision, annually reviewing and supplementing these lists for approval by the district People's Committee, and assigning individuals and organizations to directly assist and guide households in effectively using borrowed funds and reducing poverty;

b) Supporting the Vietnam Bank for Social Policies in disbursing funds, monitoring, and inspecting the use of capital and urging repayment of loans;

c) Directing the Commune Poverty Reduction Program Steering Committee to cooperate with political and social organizations in supervising the compilation of lists of particularly disadvantaged ethnic minority households eligible for loans, ensuring transparency and public participation; confirming lists of borrowing households; coordinating with lending organizations and savings and credit groups to inspect the use of borrowed funds and urge repayment of loans;

d) Directing village chiefs to participate in urging repayment of loans.

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

Article 6. Effectiveness

This Decision shall take effect from February 1, 2013, and replace Decisions No. 32/2007/QĐ-TTg dated March 5, 2007, and No. 126/2008/QĐ-TTg dated September 15, 2008, regarding lending for production development to households of particularly disadvantaged ethnic minorities.

Article 7. Responsibility for Implementation

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