Decision No. 62/1999/QĐ-NHNN21 On Amending and Supplementing Certain Articles of the Regulation on "Management and Utilization of the Rural Development Fund" issued together with Decision No. 47/QĐ-NH21 dated February 28, 1997 of the Governor of the State Bank of Vietnam.

Pursuant to …;

Amending and supplementing some articles of the Regulation on "Management and Use of the Rural Development Fund" issued together with Decision No. 47/QĐ-NH21 dated February 28, 1997 of the Governor of the State Bank.

__________________

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997;

Based on the Development Credit Agreement No. 2855 - VN dated July 19, 1996 between the Socialist Republic of Vietnam and the International Development Association, World Bank;

Based on Decision No. 5551/QHQT dated October 2, 1995 of the Government regarding the World Bank's Rural Finance Project;

Based on Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and agencies at the ministerial level;

At the proposal of the Head of the Board of Management of International Credit Projects.

Pursuant to …;

Article 1. Amending and supplementing some articles of the "Regulation on Management and Use of the Rural Development Fund" issued together with Decision No. 47/QĐ-NH21 dated February 28, 1997 of the Governor of the State Bank (hereinafter referred to as this Regulation) as follows:

1. The introductory section of this Regulation is amended as follows:

"The International Development Association (IDA) has allocated a development credit for the Rural Finance Project aimed at supporting the development of production and business activities in agriculture and rural economic development. A portion of this development credit is allocated to the Rural Development Fund (RDF Fund) established, managed, and utilized by the State Bank. Loans to sub-loan projects of end borrowers (individuals, households, cooperatives converted according to the Law on Cooperatives, non-state-owned enterprises, small and medium-sized state-owned enterprises) are implemented through selected financial institutions participating in the Rural Finance Project."

2. Article 1 is supplemented with new Clause 1.9 as follows:

"Clause 1.9. Revolving Fund: Is a part of the RDF Fund, formed based on the collection of principal debts from loans made from the RDF Fund. This fund is recorded separately and used to continue lending and gradually repay the principal debt received from the initial capital of the RDF Fund to the Ministry of Finance over 30 semi-annual periods on March 1 and September 1 each year, starting from March 1, 2002."

3. Supplementing a new Article 1A as follows:

"Article 1A: The purpose of use, criteria for selecting financial institutions to participate, criteria for determining valid sub-projects, lending, debt collection, loan terms, interest rates, collateral, pledge, insurance, and measures for monitoring and controlling lending from the revolving fund shall be carried out in accordance with the provisions for lending from the initial capital of the Rural Development Fund in this Regulation."

4. Article 2 is supplemented with new Clause 2.5 as follows:

"2.5. The management and use of the RDF Fund also aim to ensure the safety of loans, maintain the ability to fully and timely fulfill debt repayment obligations as stipulated in the Capital Transfer Agreement between the Ministry of Finance and the State Bank signed on January 14, 1997."

5. Article 6 is supplemented with new Clause 6.6 as follows:

"6.6. Annually, the Head of the Board of Management of International Credit Projects is responsible for drafting and submitting to the Governor for approval the plan for using the RDF Fund capital including all stages: lending, debt collection, debt repayment (for both the initial capital and the Revolving Fund) to ensure effective use, increase turnover, avoid capital stagnation, and ensure the ability to fully and timely repay maturing debts as recorded in the Capital Transfer Agreement between the Ministry of Finance and the State Bank."

Article 2. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

Article 3. The Director of the Office, the Head of the Board of Management of International Credit Projects, Heads of relevant units under the State Bank of Vietnam, Directors of Provincial and Municipal Branches of the State Bank, General Managers (Directors) of selected financial organizations participating in the Rural Finance Project funded by the World Bank are responsible for implementing this Decision.