Decision No. 74/QD-NH14 of the Governor of the State Bank of Vietnam on establishing a preferential loan fund for poor households lacking production capital, applicable to the Agricultural Bank and the Foreign Trade Bank. The Fund has an annual interest rate of 14.4%, with an initial capital of 400 billion VND.
Scope of application
The Agricultural Bank and the Foreign Trade Bank of Vietnam
Key points
- The Governor of the State Bank approves the proposal to establish a preferential loan fund for poor households by the Agricultural Bank and the Foreign Trade Bank.
- The interest rate for loans from the Fund to poor households is 14.4% per annum (or 1.2% per month), of which the Agricultural Bank does not benefit from the interest.
- The initial capital of the Fund is 400 billion VND, including: 100 billion VND from the Agricultural Bank; 200 billion VND lent by the Foreign Trade Bank; and 100 billion VND lent by the State Bank according to designated targets.
- Other credit institutions may establish a preferential loan fund for poor households or lend funds to the Agricultural Bank at low interest rates to supplement the capital source.
- The Fund Director is appointed by the Deputy General Director of the Agricultural Bank, designated by the General Director.
🌐 Social impact of this document
- Positive impact: Financial support for poor households, contributing to poverty reduction and rural economic development.
- Negative impact: High interest costs (14.4% per annum) may impose a burden on borrowers.
❓ Frequently asked questions
Which organization established this Fund?
The Fund was established by the Agricultural Bank and the Foreign Trade Bank of Vietnam pursuant to the Decision of the Governor of the State Bank.
What is the interest rate for loans to poor households from the Fund?
The interest rate for loans to poor households from the Fund is 14.4% per annum (or 1.2% per month).
Does the Agricultural Bank benefit from the interest?
No, the Agricultural Bank only benefits from service fees, not from the interest of the Fund.
What is the initial capital of the Fund?
The initial capital of the Fund is 400 billion VND, of which the Agricultural Bank provides 100 billion VND, the Foreign Trade Bank lends 200 billion VND, and the State Bank lends 100 billion VND according to designated targets.
How can other credit institutions participate?
Other credit institutions may directly establish a preferential loan fund for poor households or lend funds to the Agricultural Bank at low interest rates to supplement the capital source for the Fund.
Full text
Pursuant to …;
OF THE HEAD OF THE STATE BANK
Regarding the establishment of a preferential loan fund for poor households lacking production capital
of the Agricultural Bank
GOVERNOR OF THE STATE BANK OF VIETNAM
Pursuant to the State Bank Law dated May 24, 1990;
Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;
To contribute to the implementation of the Party and State's policy on poverty alleviation and hunger eradication;
Pursuant to the proposal of the General Director of the Vietnam Agricultural Bank and the Head of the Credit Department of the State Bank;
DECISION:
Article 1. Approves the Project to establish the "Preferential Loan Fund for Poor Households Lacking Production Capital" (hereinafter referred to as the Preferential Loan Fund for Poor Households) of the Vietnam Agricultural Bank and the Vietnam Foreign Trade Bank, and assigns the General Director of the Vietnam Agricultural Bank to organize the implementation of this Project.
Article 2. The General Director of the Vietnam Agricultural Bank designates a Deputy General Director as the Director of the Preferential Loan Fund for Poor Households. Deputies Directors are proposed by the Director and decided upon by the General Director of the Vietnam Agricultural Bank.
Article 3. The interest rate for loans to poor households from the Fund is 14.4% per annum (equivalent to 1.2% per month). Of this, the Vietnam Agricultural Bank receives service fees but does not receive interest.
Article 4. Other credit organizations may, based on their financial capacity and sources of funds, directly establish a Preferential Loan Fund for Poor Households or lend funds to the Vietnam Agricultural Bank at low interest rates to supplement the capital for the Preferential Loan Fund for Poor Households under this Project.
Article 5. The initial capital of the Fund is 400 billion VND, of which the Vietnam Agricultural Bank contributes 100 billion VND, the Vietnam Foreign Trade Bank lends 200 billion VND (according to the agreement between the Vietnam Foreign Trade Bank and the Vietnam Agricultural Bank), and the State Bank lends 100 billion VND according to designated targets for three years (the Vietnam Agricultural Bank withdraws money based on actual needs and pays interest quarterly).
Article 6. This Decision shall take effect from the date of signing.
Article 7. The Chief of the Governor's Office, Heads of the Credit Department, Accounting and Finance Department, Branch Manager of the State Bank, Heads of relevant units of the Central State Bank, Branch Managers of the State Bank in provinces and cities, General Director of the Vietnam Agricultural Bank, Vietnam Foreign Trade Bank, and other credit organizations are responsible for implementing this Decision./.
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