Decision No. 28/2015/QD-TTg dated July 21, 2015, on credit policy for housedholds escaping poverty

DECISION

ON CREDIT POLICY FOR HOUSEDHOLDS ESCAPING POVERTY

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

Pursuant to the Law on the State bank of Vietnam dated June 16, 2010;

Pursuant to the Law on credit institutions June 16, 2010;

Pursuant to National Assembly’s Resolution No. 76/2014/QH13 dated June 24, 2014 on promoting the implementation of sustainable poverty reduction until 2020;

Pursuant to the Government’s Decree No. 78/2002 / ND-CP dated October 4, 2002 on credits for the poor and other beneficiaries of incentive policies;

At the request of the Governor of the State bank of Vietnam,

The Prime Minister promulgates the Decision on credit policy for household escaping poverty.

Article 1. Scope of application

This Decision prescribing credit loans from the Bank for social Policies for household escaping poverty to develop production and business in order to have a stable life and make sustainable poverty reduction.

Article 2. Regulated entities

Households escaping poverty under the provisions of this Decision includes households that used to be poor, households living near poverty which have annual per capita income higher than the standard of households living near poverty through investigation and review under the provisions of the current law, are recognized by the People’s Committees of communes and of which names have been deleted from the list of poor households, households living near poverty for a maximum of 3 years.

Article 3. Loan fund

Loan fund is stipulated in the Government’s Decree No. 78/2002 / ND-CP dated October 4, 2002 on credits for the poor and other beneficiaries of incentive policies.

Article 4. Loan size

Loan size shall be agreed by the Bank for social policies and households escaping poverty which does not exceed the loan size of the same type for production and business for poor households stipulated in each period.

Article 5. Loan term

Loan term shall be agreed by the Bank for social Policies and households escaping poverty based on production, business cycle and solvency customers which shall be within 5 years.

Article 6. Lending interest rates

1. Lending interest rate applied to households escaping poverty is equal to 125% of the lending interest rate applied to poor households defined in each period.

2. Overdue loans shall be charged at the rate of 130% oflending interest rate.

Article 7. Loan extension

Loan extension applied to households escaping poverty shall comply with provisions on loan extension applied to poor households of the Government’s Decree No. 78/2002 / ND-CP dated October 4, 2002 on credit policy for the poor and other beneficiaries of incentive policies.

Article 8. Applications and procedures for lending and settlement of risk debt

1. Applications and procedures for lending applied to households escaping poverty shall comply with provisions on applications and procedures applied to poor households.

2. Settlement of risk debt applied to debts of households escaping poverty shall comply with the mechanism for settlement of risk debt of the Bank for Social Policies.

Article 9. Responsibilities of relevant units

1. Bank for Social Policies:

a) Issue provisions on applications and procedures for lending applied to households escaping poverty which comply with provisions on applications and procedures applied to poor households and are simple, clear and easy to implement.

b) Permit lending to households escaping poverty under the provisions of this Decision.

c) Formulate an annual plan for funds to lend for credit policy program, including lending to households escaping poverty and request the competent authority for approval.

d) Monthly (not later than the 15th of next month), report to the State Bank of Vietnam on the results of lending to households escaping poverty.

2. The State Bank of Vietnam:

Take charge and cooperate with relevant Ministries, department in the implementation of credit policy for households escaping poverty and request for handling arising issues and problems during the implementation.

b) Assess, learn from experience, report to the Prime Minister on the results of the implementation of credit policy for households escaping poverty and propose solutions of next years.

3. The Ministry of Finance:

Take charge and cooperate with relevant Ministries, departments to report the Prime Minister on funding provided for the Bank for Social Policies by central budget to lend to policy credit programs, including credit policy for households escaping poverty as prescribed.

b) Cooperate with the State Bank of Vietnam in the implementation of credit policy for households escaping poverty and request for handling arising problems during the implementation.

4. The Ministry of Labor, War Invalids and Social Affairs:

a) Declare the number of households escaping poverty annually and periodically as a basis for People’s Committees at all levels to implement this Decision.

b) Cooperate with the State Bank of Vietnam in the implementation of credit policy for households escaping poverty and request for handling arising problems during the implementation.

5. Relevant Ministries, departments shall base on the assigned functions and tasks to cooperate together to implement this Decision.

6. People’s Committee of central-affiliated cities and provinces direct:

People’s Committees of communes to compile the list of households escaping poverty and to report to the People's Committees at district level for approval which is the basis for the Bank for social Policies to lend under this Decision.

b) Functional agencies, People’s Committees at all levels shall cooperate with the Bank for social Policies to implement this Decision.

Article 10. Implementing provisions

1. This Decision takes effect from September 5, 2015 and is made disbursement to the end of December 31, 2020.

2. Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the President of the People’s Committee of central-affiliated cities and provinces, President of the Board of Directors, and General Director of Bank for social Policies shall be responsible for the implementation of this Decision ./.