Circular No. 84/2025/TT-BTC amends and supplements certain provisions of Circular No. 11/2017/TT-BTC on the management and use of local government budget funds entrusted to the Vietnam Bank for Social Policies for lending to the poor and other policy beneficiaries. This document provides more detailed regulations on sources of funding, loan amounts, interest rates, risk reserve fund contributions, and reporting procedures.
Scope of application
The provincial branch of the Vietnam Bank for Social Policies and the specialized agencies assigned by the Provincial People's Committee to sign entrustment contracts with the provincial branch of the Vietnam Bank for Social Policies.
Key points
- The Provincial People's Council decides on the source of local government budget funds allocated annually for lending (Article 3).
- Specialized agencies assigned by the Provincial People's Committee to sign entrustment contracts with the provincial branch of the Vietnam Bank for Social Policies (Article 5, Clause 1).
- Loan amounts, loan terms, and interest rates are determined by the Provincial People's Council in accordance with local conditions (Article 5, Clause 3).
- Risk reserve fund contributions are made in accordance with the regulations of the Vietnam Bank for Social Policies and the Ministry of Finance (Article 5, Point a, Clause 7).
- The Provincial People's Committee decides on the authority to examine and handle risky debts (Article 5, Point b, Clause 8).
🌐 Social impact of this document
- Enhance the management and effective use of local government budget funds entrusted to the Vietnam Bank for Social Policies.
- Minimize credit risks through the establishment of a risk reserve fund.
- The beneficiaries are the poor and other policy recipients who can access loans more easily.
- Local administrative agencies have additional responsibilities in monitoring and supervising lending activities.
❓ Frequently asked questions
What does the Provincial People's Council decide regarding the source of local government budget funds?
The Provincial People's Council decides on the source of local government budget funds allocated annually for lending (Article 3).
Who determines the loan amounts, terms, and interest rates?
The loan amounts, terms, and interest rates are determined by the Provincial People's Council in accordance with local conditions (Article 5, Clause 3).
Risk reserve fund contributions are made according to which regulations?
Risk reserve fund contributions are made according to the regulations of the Vietnam Bank for Social Policies and the Ministry of Finance (Article 5, Point a, Clause 7).
Who decides on the authority to examine and handle risky debts?
The Provincial People's Committee decides on the authority to examine and handle risky debts (Article 5, Point b, Clause 8).
Which agency signs entrustment contracts with the provincial branch of the Vietnam Bank for Social Policies?
Specialized agencies assigned by the Provincial People's Committee to sign entrustment contracts with the provincial branch of the Vietnam Bank for Social Policies (Article 5, Clause 1).
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIET NAM |
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Number: 84/2025/TT-BTC |
Hanoi, August 19, 2025 |
CIRCULAR
AMENDING AND COMPLEMENTING CERTAIN PROVISIONS OF CIRCULAR NO. 11/2017/TT-BTC DATED FEBRUARY 8, 2017 OF THE MINISTRY OF FINANCE ON MANAGEMENT AND USE OF LOCAL GOVERNMENT BUDGET FUNDS DELEGATED THROUGH THE SOCIETY POLICY BANK FOR LOANS TO POOR PEOPLE AND OTHER TARGET GROUPS
On the basis of Law on State Budget Management dated June 25, 2015; Law Amending and Supplementing Certain Provisions of the Securities Law, Accounting Law, Independent Audit Law, State Budget Law, Management and Use of Public Assets Law, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Administrative Violation Handling Law on November 29, 2024;
On the basis of Investment Law on November 29, 2024;
Pursuant to Law No. 90/2025/QH15 dated June 25, 2025 amending and supplementing certain provisions of The Bidding Law, The Public-Private Partnership Investment Law, The Customs Law, The Value Added Tax Law, The Export Tax, Import Tax Law, The Investment Law, The Government Investment Law, The Management and Use of Public Assets Law;
On the basis of Law on Legislative Decrees dated February 19, 2025;
Decree No. Decree No.
Decree No. 166/2025/NĐ-CP dated June 30, 2025 of the Government amending and supplementing certain provisions of Decree No. 29/2025/NĐ-CP dated February 24, 2025 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Decree No. 29/2025/NĐ-CP dated February 24, 2025 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for poor people and other target groups;
Decree No. 125/2025/NĐ-CP dated June 11, 2025 of the Government stipulating the division of authority between two levels of local government in the field of state management by the Ministry of Finance:
1. Scope of Regulation:
The Minister of Finance promulgates this Circular amending and supplementing certain Articles of Circular No. 150/2025/NĐ-CP dated June 12, 2025 of the Government stipulating the organization of specialized agencies under provincial People's Committees and district-level People's Committees and special economic zones under provincial People's Committees;
Article 1. Amend and supplement certain Articles of Circular No. 11/2017/TT-BTC dated February 8, 2017 of the Ministry of Finance on management and use of local government budget funds delegated through the Society Policy Bank (SPB) for loans to poor people and other target groups as follows:
1. Amend and supplement Clause 2, Article 3 as follows:
“2. Annual provincial budget funds allocated (depending on the actual situation of each locality and budget balancing capacity) delegated through the SPB branch at the provincial level for loans to poor people and other target groups shall be decided by the Provincial People's Council.”
2. Amend and supplement Clause 1, Article 5 as follows:
“1. The specialized agency assigned by the Provincial People's Committee to sign the delegation contract with the SPB branch at the provincial level.”
3. Amend and supplement Clause 5, Article 5 as follows:
"The loan amount, loan term, and loan interest rate shall be determined by the Provincial People's Council based on current SPB regulations and the actual situation in the locality."
4. Amend the content of the first bullet point and the second bullet point under Point a, Clause 7, Article 5 as follows:
“- Establish a general credit risk reserve fund according to the financial management regulation of the SPB and related guidelines from the Ministry of Finance. In cases where the overdue debt ratio and non-performing debt ratio is lower than 0.75% at the time of establishing the credit risk reserve fund, the credit risk reserve fund will be set at 0.75% of the outstanding loan balance (excluding overdue and non-performing debts);
- Deduct management fees for delegated funds to the SPB branch at the provincial level based on the average outstanding loan balance. The minimum management fee must equal the management fee set by the Prime Minister for the SPB during each period. If the interest income after deducting the credit risk reserve fund is insufficient to cover the management fee for the SPB as prescribed, the provincial budget will make up the shortfall for the SPB branch receiving the delegation.”
5. Amend and supplement Points a, b, and d, Clause 8, Article 5 as follows:
“a) For debts at risk due to external factors: The debtor subject to risk assessment, the external factor causing direct damage to the capital and assets of the borrower, measures to address the risk, and legal documentation for reviewing and handling risky debts shall be carried out according to the Prime Minister’s regulations on mechanisms for handling risky debts at the SPB;
For debts at risk outside the scope of subjects and external factors specified in the Prime Minister’s regulations on mechanisms for handling risky debts at the SPB, the Provincial People's Council shall specify the handling mechanism.”
“b) Authority to review and handle risky debts shall be decided by the Chairman of the Provincial People's Committee.”
“d) In cases where the credit risk reserve fund is insufficient to cover losses, depending on the actual situation of the risky loan, the specialized agency assigned by the Provincial People's Committee to sign the delegation contract shall take the lead, coordinate with relevant departments and the SPB branch at the provincial level to report to the Provincial People's Committee for additional provincial budget allocation to address the issue, or directly reduce the delegated provincial budget funds transferred to the SPB branch at the provincial level.”
6. Amend and supplement Clause 9, Article 5 as follows:
“9. Reporting system: Semi-annually, annually, or upon urgent request, the SPB branch at the provincial level shall report the total source of funds and loan results from delegated funds to the Provincial People's Committee and the specialized agency assigned to sign the delegation contract.”
Article 2. Implementation clause
1. This Circular takes effect from August 19, 2025.
2. For provincial government budget funds delegated through the SPB before being transferred to the SPB branch at the provincial level for continued lending, the specialized agency assigned by the Provincial People's Committee to sign the delegation contract with the SPB branch at the provincial level shall continue to monitor and manage. Specifically, for amounts deducted from interest income that have not been used before this Circular takes effect, they shall be added to the provincial government budget delegated funds through the SPB branch at the provincial level for continued lending as prescribed.
3. In cases where laws and regulations cited in this Circular are amended, supplemented, or replaced by other laws and regulations, the provisions of the amended, supplemented, or replacing laws and regulations shall apply.
4. During the implementation process, if there are difficulties or obstacles, agencies and units are requested to report to the Ministry of Finance for research and resolution.
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DEPUTY MINISTER |
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