GOVERNMENT'S DECREE NO. 14/CP on MAY 2-3-1993 ISSUED a REGULATION on POLICY for HOUSEHOLDS BORROWING to DEVELOP PRODUCTION of agriculture-forestry-FISHERIES-MATCH INDUSTRY and RURAL ECONOMY.
The GOVERNMENT pursuant to the law on Government Organization, 30 September 1992;
The Banking Ordinance base, credit cooperatives and financial companies on May 24, 1990;
Based on the results and the experience of the following year to try for loans to households under Directive 202/CT dated 28 June 1991 by the President of the Council of Ministers (the Prime Minister);
According to the proposal of the Governor of the State Bank, the DECREE: article 1. Attached to this decree a regulation on policy for households borrowing to develop production of agriculture-forestry-fisheries-match industry and rural economy.
Article 2. The Ministers, heads of ministerial agencies, heads of government agencies, the Chairman of the people's committees of provinces and cities under central authority responsible for the implementation of this Decree.
Article 3. The Decree has effect from the date of signing, the previous provisions contrary to this Decree are repealed.
RULES on POLICY for HOUSEHOLDS BORROWING to DEVELOP PRODUCTION of agriculture-forestry-FISHERIES-MATCH INDUSTRY and RURAL ECONOMY.
(Attached to Decree No. 14-2-3-1993 of the Government).
GENERAL PROVISIONS article 1. Households produce in this Regulation include farmers, private household, individual, Corporation, cooperative organizations and State enterprises, members of cooperatives, corporations and production enterprises of State business activity in the service sector agriculture-forestry-fisheries-match career and the U.S. , rural craft.
Article 2. the production of household demand for loans and eligible shall be the banking and credit institutions additional lending capital to production, business and services.
Article 3. Banks and credit organizations to extend short-term loan forms directly to the households of production, gradually expanding the medium-term and long-term loans to grow trees, livestock, machinery, technological innovation, the development of rural industry, etc.
Article 4. Make direct loans to households of production, ensure effective principles of social-economic, irrespective of economic sectors, lending priority to implementation of the project by the Government appointed; focus on loans for poor households, households in high mountain areas, Islands, remote areas, the new economic areas, the ethnic Khmer me focus.
The SCOPE and CONDITIONS of the LOAN Capital 5. The loan was used for the following purposes:-agriculture-forestry-fisheries-match career.
Production services-agriculture-forestry-fisheries-match career.
-Development of processing industry of agricultural products and primary, rural craft.
-Product consumption of agriculture-forestry-fisheries-match career and minor products, rural craft.
Article 6. Banks and credit institutions must base on the economic conditions of each type of households borrowing rules to please the level and form of trust, mortgage or guarantees. For those poor farmers do not have collateral then can apply the trust form of communal people's Committee, the hamlet or the socio-economic institutions, the professional associations, related groups, the unions mass. .. State Bank guide the rules of mortgage, trust, facilitate the timely loans for farmers.
Resources, FORMS and LOAN INTEREST article 7. Loan capital includes the following principal sources:-capital mobilization of the people, the organizations, the civil society organizations in the country and abroad with the appropriate form.
-Funding of the Government's annual lending for investment projects in agriculture and rural development.
-Receive capital mandated by the non-governmental organization in the country and abroad, capital investment grants, assistance for the development of agriculture and rural development under the program.
-Capital Source from other credit institutions.
-Capital recover debts standing from the previous provision, Khe.
-Self-accrue Capital of banks and credit institutions.
Article 8. Every year, the State Planning Committee chaired jointly with the Ministry of finance, Central Bank, ministries and people's committees, the relevant city government approval of investment loan for agricultural and rural development to delivery to the proper business of Bank loan project or has been appointed Government.
Article 9. Custom resource properties, banks and credit institutions for the production of household borrowing short term, medium term and long term:-short term loan for production costs; loan term according to production cycles, with short production cycle can apply for loan save time, but must not exceed 12 months.
-Medium-term loans to plant tree save modern farming, new livestock breeding, poultry raising, fish-breeding, technology innovation of production etc. loan term must not exceed 36 months.
-Long-term loans for planting and care of trees, deciduous trees, livestock, new boats, shops, boats manufacturing machinery, agricultural-forestry-seafood, expand production facilities, technological innovation of production etc. the loan term on 36 minutes.
Article 10. Loan interest rate: the interest rate mechanism-regardless of the economic component. State Bank regulations interest rate financing, lowest interest rates for loans, banks and credit organizations announced a specific interest rate for each object, each economic region during the match the supply and demand relationship of capital, guaranteed benefits for both the borrower and the lender.
Pursuant to norm the highest lending rate is the interest rate on the average mobilization of sources, plus (+) with a reasonable management fee, rates, tax risks and has accrued.
With regard to the Government's capital investment to agriculture and rural development, made vacant land greening program, Bare hills and mountains, the Government regulation for loan interest rates.
-Production of Household loans in high mountain areas, Islands, the new economy, the ethnic Khmer me concentrate enjoy preferential loan policies: be reduced 15% normal interest rate loan of the same type.
CREDIT INSTITUTIONS article 11. Consolidate, enhance the operational capacity of the Bank of agriculture, encourage other commercial banks, joint-stock banks, credit cooperatives, foreign bank branches, joint ventures with foreign banks operating in Vietnam for direct loans to households in rural production.
The Bank, the credit organization for the production of household loans to business and production operations under the Banking Ordinance, the cooperative credit and finance companies.
Article 12. Encourage the expansion of forms of organized reciprocity by the people and institutions of mass voluntary unions established to support each other in production and life as life Foundation, save women group, gardening etc. This organization works to take responsibility and help guide the Bank business.
-Agricultural cooperatives, enterprises, mass organizations, professional associations, etc. are agents for banks and credit institutions make to households loans to manufacturing production and rural economic development.
-The loans of the State-owned enterprises carried out under current policies.
TERMS OF IMPLEMENTATION of article 13. The State Bank Governor, the Finance Minister, the Chairman of the State Planning Committee according to the functions, duties and powers of his own, issued circulars implementing rules.
Article 14. This provision was widely popular among the people.