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Univ. ------------------------------------------------------------ GOVERNMENT SOCIALIST REPUBLIC OF VIETNAM No. 14-CP Independence-Freedom-Happiness Hanoi, 02 March 1993 ENACTMENT OF GOVERNMENT Promulgating the regulation for producing household crediting to develop agro-forestry, aquaculture, salt career and rural economy GOVERNMENT Based on the law of government organisation dated 30 September 1992; Based on Decree on Bank, credit cooperative and financing company dated 24 May, 1990; Based on the result and experience drawing after one year try to credit to producing household under instruction No. 202-CT dated 28 June 1991 of President of Council of Ministers (now be known as prime minister); According to suggestion of state bank governor; ENACTMENT Article 1. Promulgating together with this enactment the Regulation of policy to credit to producing household a loan to develop agro-forestry, aquaculture, salt career and rural economy. Article 2. The ministers, heads of institutions equal ministry, heads of institutions belong to government, president of people's committee of provinces, cities at central level will be responsible to implement this enactment. Article 3. This enactment is in effective since the signing date, all previous stipulation in contrary of this enactment will be cancelled. On behalf of GOVERNMENT Prime Minister Vo Van Kiet (signed) ------------------------------------------------ GOVERNMENT SOCIALIST REPUBLIC OF VIETNAM Independence-Freedom-Happiness Hanoi, 02 March 1993 STIPULATION Of Policy For Producing Household To Credit A Loan To Develop Agro-forestry, Aquaculture, Salt Career And Rural Economy (promulgating combined with Enactment No. 14-CP dated 02 March 1993 of Government) GENERAL CONDITIONS Article 1. The producing household in this stipulation includes the farmer household, private household, individual, holding company, the cooperatives and state entrepreneurs, member of cooperatives, producing group and state entrepreneurs operating in production, trading and providing service in agricultural, forestry, aquaculture, salt career and small industry in rural area. Article 2. The producing household which has demand to get a loan and of sufficient conditions will be credited by bank or credit organisation for additional capital for producing, trading, providing services. Article 3. The bank and credit organisations expand the form of short term credit providing directly to producing household, gradually extend middle term and long term credit to develop perennial tree, husbandry, purchasing equipment and machine, renew technology, promoting rural industry, etc... Article 4. Implement direct credit to household, ensure the social and economic efficiency, unidentify economic constituents, priority given to implement project instructed by the government; emphasis credit to poor household, the household in high mountainous region and island, remote place, new economical precinct, concentrated Khme ethnic group region. SCOPE AND CONDITION TO CREDIT Article 5. The loan credited for following purpose: - Producing in agriculture, forestry, salt career and aquaculture - Providing service in agriculture, forestry, salt career and aquaculture. - Develop processing industry for agriculture products and small and craft industry in rural region. - Market the products of agriculture, forestry, salt and aquaculture and small, craft industry in rural area. Article 6. The bank and credit organisation based on economic situation of every household apply for credit to stipulate rate and form of pledge, credit endorse or guarantee properly. For poor farmer household without property for pledge, it can apply the credit endorse by people's committee of commune or village or social organisation, career groups, inter-familial group, etc... The state bank instructs the stipulation of pledge, credit endorse, facilitate to farmer household get loan in time of crop. FUND, FORM AND INTEREST RATE Article 7. Credit fund including following major resources: - Mobilise from people, economic organisation, social organisation in the country and overseas by suitable form. - Annual fund for credit of government subsidised to project invest in developing rural agriculture. - Receive trust fund from non government organisation in the country and overseas, support fund invest in developing agriculture and rural region under identify programme. - The fund mobilising from other credit form. - The fund re collecting from previous credit by difficult to receive back. - Fund self accumulated of bank and credit organisation. Article 8. Annually, state planning committee collaborate with ministry of finance, state bank, ministries and people's committees of relating provinces and cities to submit to government adopt the fund to credit for developing agriculture and rural region so as hand over the concerned state bank to conduct credit under project or direction of government. Article 9. Depended on the fund available, the bank and credit organisation to conduct credit with short term, middle term or long term. - Short term credit apply for production expenses: the term rely on production interval, for short interval we can apply the term overlap crop but maximum could not over 12 months. - Middle term credit apply for new planting non cash crop, husbandry of cattle, breeding poultry and fish, renew technology... the maximum term is 36 months. - Long term credit apply for planting and taking care perennial tree, forestry tree, husbandry of basic species, building new boat, purchasing boat, equipment, processing agricultural and aquatic products, expanding production unit, renew production technology... the term credit is over 36 months. Article 10. Interest rate: - Apply the system non identify economic constituent. State bank stipulate minimum rate for mobilising fund, maximum rate for credit, the bank and credit organisation will declare the concrete rate for each object, each economic region with the time suitable to demand and supply law, ensure the benefit for borrower and lender. The basic to calculate maximum rate is mean rate to mobilise fund plus reasonable management fee, risk rate, tax and accumulate rate. For investment fund of government for developing agriculture and rural region, conduct programme greening bare land and hill, the credit rate identify by the government. - The producing household situated in high mountainous region, island, new economic precinct, Khme ethnic group habitation will enjoyed favourable interest rate; reduce 15% of normal rate. CREDIT ORGANISATIONS Article 11. Strengthening, improving the operation capacity of agriculture bank, encourage other commerce banks, holding bank, credit cooperative, branches of foreign bank operating in Vietnam to credit directly to producing household in rural region. Banks, credit organisations to credit capital for producing, trading, operating under the enactment for banking, credit cooperative and financing company. Article 12. Stimulate to expand form of compensation counter establishing by people and mass organisation to. support each other in production and life ie. long live maintain fund, women saving group, gardener group... These organisation should self support and responsible for materials and will be supported by bank in respect of career. - The credit to state entrepreneur implement under prevailing policy. ENFORCEMENT CONDITION Article 13. State Bank Governor, minister of finance, chairman of state planning committee based on his own function, task and power will prepare circulation to instruction implementing this Stipulation. Article 14. This stipulation is public awareness. On behalf of GOVERNMENT Prime Minister Yo Van Kiet (signed) Justice duplicate pp. minister, chairman of government office Vice chairman Vu Dinh Thuan (signed) ----------------------------------------------------------------------- End of File