Decision No. 92/2009/QD-TTg on credit for traders engaged in commerce in difficult areas

Pursuant to …;

Regarding credit for merchants engaged in trade activities in difficult areas

 ___________________________

PRIME MINISTER

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

Pursuant to the Law on Trade dated June 14, 2005;

Pursuant to Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy beneficiaries;

Pursuant to Resolution No. 20/2007/NQ-CP dated April 11, 2007 of the Government on the regular meeting of the Government in March 2007;

Considering the proposal of the Minister of Finance,

DECISION:

Article 1. Credit for merchants engaged in trade activities in difficult areas refers to the use of financial resources mobilized by the State to provide loans for developing trade in mountainous, island, and ethnic minority regions, contributing to implementing programs for agricultural and rural development, and achieving balanced economic growth across regions nationwide.

The Social Policy Bank shall implement the credit policy for merchants engaged in trade activities in difficult areas as stipulated in this Decision.

Article 2. Difficult Areas

1. Difficult areas eligible to benefit from the credit policy for merchants as provided in this Decision include communes, wards, towns (hereinafter referred to collectively as communes) listed in the Catalogue issued together with Decision No. 30/2007/QĐ-TTg dated March 5, 2007 of the Prime Minister on issuing the Catalogue of Administrative Units in Difficult Areas.

2. Communes established after the effective date of this Decision, based on the division, separation, or merger of administrative units listed in Clause 1 above, shall also be entitled to benefit from the credit policy under this Decision.

Article 3. Merchants Engaged in Trade Activities

1. Merchants include: legally established economic organizations, individuals independently and regularly engaging in trade activities and registered for business.

2. Trade activities: carried out in accordance with the provisions of the Law on Trade and guiding documents.

Article 4. Borrowers

The borrowers under this Decision are merchants regularly engaged in trade activities in difficult areas.

Article 5. Conditions for Borrowing

To be eligible for borrowing, the borrowers as specified in Article 4 of this Decision must meet the following conditions:

1. Confirmation by the People's Committee of the commune where the merchant engages in trade activities that the merchant has been regularly conducting trade activities within the area.

2. Having self-capital (including: value of materials, land use rights, cash capital) participating at least 20% of the total loan capital requirement for trade activities in the difficult area.

3. Implementing measures to secure the loan as stipulated in Article 12 of this Decision.

Article 6. Principles of Borrowing

1. Merchants borrowing funds must use the borrowed funds for the purposes specified in Article 7 of this Decision.

2. Merchants borrowing funds must repay the principal and interest according to the terms of the loan agreement.

Article 7. Purpose of Loan Usage

The Social Policy Bank provides merchants with loans to meet their capital needs for trade activities including:

1. Investment in building offices, shops, warehouses, equipment, and other assets.

2. Purchasing goods including machinery, equipment, raw materials, fuel, materials, consumer goods, and other movable assets circulating in the market.

3. Contributing capital with other organizations and individuals to implement production and business projects in the difficult areas as specified in Article 2 of this Decision.

Article 8. Maximum Loan Amount

1. For individual merchants who do not maintain accounting records and pay tax on a lump-sum basis as prescribed by tax authorities: the maximum loan amount is 30 million VND.

2. For individual merchants who maintain accounting records and declare and pay various taxes as prescribed by law: the maximum loan amount is 100 million VND.

3. For legally established economic organizations: the maximum loan amount is 500 million VND.

Article 9. Interest Rate for Loans

1. The lending interest rate is set at the same level as the lending interest rate for households engaged in production and business in difficult areas.

Article 10. Guarantee for loans

3. Adjustments to the lending interest rate are decided by the Prime Minister based on the proposal of the Board of Directors of the Social Policy Bank.

Article 10. Loan Term and Debt Extension

1. The loan term is determined according to short-term, medium-term, and long-term loans but not exceeding five years.

2. The loan term for each case is decided by the Social Policy Bank, consistent with the purpose of using the loan, the borrower's ability to repay, and the cycle of trade activities.

3. The maximum extension period for short-term loans is twelve months. The maximum extension period for medium-term and long-term loans is half the loan term stated in the loan agreement.

Article 11. Method of Providing Loans

The Social Policy Bank directly provides loans to merchants.

Article 12. Securing the Loan

1. Merchants borrowing up to 30 million VND do not need to secure the loan.

2. Merchants borrowing more than 30 million VND must secure the loan in accordance with the laws on secured transactions and guidelines of the Social Policy Bank.

Article 13. Handling Risks Due to Objective Factors

Risk handling is carried out in accordance with the laws on risk management of non-performing loans of the Social Policy Bank.

Article 14. Responsibilities of the Social Policy Bank

1. Provide detailed guidance on loan application documents, procedures, and processes, ensuring simplicity, clarity, and ease of implementation.

2. Review loan application documents of customers and provide loans to eligible borrowers who meet the borrowing conditions as stipulated.

3. Develop and implement monitoring and supervision procedures during the borrowing process, usage of funds, and repayment by merchants, suitable to the characteristics of the bank's operations and the nature of the loan, to ensure proper and efficient use of loan funds and the possibility of recovering the loan. In cases where merchants have borrowed funds but have not used them for trade activities in difficult areas, the Social Policy Bank will cooperate with the People's Committees of communes, wards, towns, and relevant agencies to recover the debt according to regulations.

Article 15. Responsibilities of Borrowing Merchants

1. Prepare loan application documents in accordance with the guidance of the Social Policy Bank and bear responsibility for the accuracy and legality of the documents submitted to the Social Policy Bank.

2. Fully comply with the principles of borrowing as stipulated in Article 6 of this Decision.

3. Fulfill all obligations and other commitments in the loan agreement.

4. Accept inspection and supervision by state management agencies and the Social Policy Bank regarding the use of funds, repayment, and payment of interest.

Article 16. Responsibilities of State Management Agencies

1. The ministries, ministerial-level agencies, and agencies under the Government shall perform their state management functions within their respective authorities regarding credit policies for traders engaged in commerce in difficult areas as stipulated herein, to facilitate the operations of the Social Policy Bank.

2. Ministry of Finance

a) Perform state financial management functions within their respective authorities; take the lead and coordinate with relevant ministries and sectors to inspect and supervise the implementation of this Decision;

b) Take the lead and coordinate with the Ministry of Planning and Investment to compile credit plans for traders engaged in commerce in difficult areas into the policy credit plan and interest rate subsidy plan, allocate them into the annual state budget estimate to be submitted to the Government for approval by the National Assembly for the Social Policy Bank to implement.

3. The Ministry of Planning and Investment shall coordinate with the Ministry of Finance to compile credit plans for traders engaged in commerce in difficult areas into the policy credit plan and interest rate subsidy plan, allocate them into the annual state budget estimate to be submitted to the Government for approval by the National Assembly.

4. The Chairpersons of the People's Committees of provinces and centrally governed cities shall be responsible for directing competent agencies to implement credit policies for traders engaged in commerce in difficult areas in accordance with the law and this Decision.

Article 17. Effectiveness

1. This Decision shall take effect from September 5, 2009.

2. For individuals belonging to households that have registered for business and have received loans under Decision No. 31/2007/QĐ-TTg dated March 5, 2007 of the Prime Minister on credit for households producing and trading in difficult areas, they are entitled to borrow funds under this Decision after fully repaying both principal and interest to the Social Policy Bank.

3. The ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairpersons of provincial and centrally governed city People's Committees, Chairpersons of the Board of Directors, General Directors, and the Social Policy Bank shall be responsible for implementing this Decision./.