Decision No. 991/2001/QD-NHNN On the level of unsecured loans for People's Credit Funds at all levels.

Pursuant to …;

Regarding the provision on the level of unsecured loans for People's Credit Funds at all levels

for People's Credit Funds at all levels

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Organizations dated December 12, 1997;

Pursuant to Decree No. 15/CP dated February 3, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;

Pursuant to Clause 2, Article 21 of Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on loan guarantees for credit organizations;

Pursuant to the proposal of the Director of the Monetary Policy Department,

DECISION:

Article 1.

1.The Board of Directors of the Central People's Credit Fund decides the level of unsecured loan debt to borrowers and is responsible for its decision.

2.The Board of Directors of the Regional People's Credit Fund decides the level of unsecured loan debt to members which are grassroots People's Credit Funds and is responsible for its decision.

3.A grassroots People's Credit Fund may provide unsecured loans to members up to a maximum of 40% of the total unsecured loan debt of that grassroots People's Credit Fund:

a.Provide unsecured loans to members: households according to Decision No. 67/1999/QĐ-TTg dated March 30, 1999 of the Prime Minister on certain credit policies of commercial banks serving agricultural and rural development; other members borrowing funds for production, business, services, and living expenses;b.The level of unsecured loan debt to a member as stipulated in point a of this clause shall not exceed VND 10 million; any amount exceeding VND 10 million must be secured by collateral.

1.The level of unsecured loan debt of the Central People's Credit Fund, the Regional People's Credit Fund, and the grassroots People's Credit Fund as provided in Article 1 of this Decision shall be calculated based on the total loan debt of the credit organization.

Article 2.

2.The level of unsecured loan debt of the Central People's Credit Fund, the Regional People's Credit Fund, and the grassroots People's Credit Fund as provided in Article 1 of this Decision shall only apply to credit contracts established from April 19, 2000.

The Central People's Credit Fund, the Regional People's Credit Fund, and the grassroots People's Credit Fund decide to provide unsecured loans to customers based on ensuring the safety of credit operations, complying with the provisions on unsecured loans in Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on loan guarantees for credit organizations, Circular No. 06/2000/TT-NHNN1 dated April 4, 2000 of the Governor of the State Bank guiding the implementation of this Decree, and other legal provisions on loan guarantees applicable to People's Credit Funds.

Article 3.This Decision takes effect from the date of issuance and replaces Decision No. 108/2000/QĐ-NHNN1 dated April 4, 2000 of the Governor of the State Bank.

Article 4. Implementation Provisions

2.The Director of the State Bank Inspectorate is responsible for inspecting and supervising the implementation of this Decision.

3.Directors of units under the State Bank, Governors of State Bank Branches in provinces and centrally-administered cities; Boards of Directors, General Managers (Directors) of the Central People's Credit Fund, the Regional People's Credit Fund, and the grassroots People's Credit Fund are responsible for implementing this Decision.

4.Any amendments or supplements to this Decision shall be decided by the Governor of the State Bank./.

4. The amendment and supplementation of this Decision shall be decided by the Governor of the State Bank./.