DIRECTIVE

DIRECTING THE OPERATION OF THE BANK FOR SOCIAL POLICIES

In furtherance of the Prime Minister's Decision No. 131/2002/QD-TTg of October 4, 2002, the Bank for Social Policies has been set up on the basis of reorganizing the Bank for the Poor and separated from the system of the Bank for Agriculture and Rural Development of Vietnam. The Bank for Social Policies has officially opened and been put into operation since March 11, 2003, but due to expansion of its eligible subjects as well as the necessity to build up its organizational apparatus and arrange personnel while formulating and finalizing mechanisms for its operation, its work volume has been extremely great, requiring great efforts.

In order to create conditions for the Bank for Social Policies to soon stabilize its organization and operation and smoothly implement the 2003 plan within its entire system, the Prime Minister requests the ministries, the People's Committees of various levels and the Bank for Social Policies to immediately perform the following tasks:

1. On the transfer of capital and policy beneficiaries from other organizations to the Bank for Social Policies:

a) The Ministry of Finance shall assume the prime responsibility and coordinate with the concerned ministries and organizations and the Bank for Social Policies in immediately setting up an inter-branch team according to the Prime Minister's direction in order to inventory and evaluate capital, assets and debts previously provided as preferential loans by other units to subjects now entitled to the Bank's services; on that basis, to unify handling measures and direct the completion of procedures for transferring capital to the Bank for Social Policies within the prescribed time limits.

b) Pending the complete transfer, in order to ensure the smooth policy-loan provision, the concerned ministries, branches as well as central and local units are requested to continue lending capital to poor households and policy beneficiaries according to the current regimes as usual until the transfer thereof to the Bank for Social Policies is completed, concretely:

- The Ministry of Finance shall direct the State Treasury system to continue performing the tasks of providing loans to, and retrieving debts from, subjects borrowing capital for job creation until the inter-branch team completes the inventory, re-evaluation and transfer of capital and assets to the Bank for Social Policies.

...

...

...

- Vietnam State Bank shall direct commercial banks to inventory and re-evaluate capital, assets and preferential loan debts of policy beneficiaries now entitled to loan provision by the Bank for Social Policies, so as to hand over them within the time limits prescribed by the Prime Minister. Particularly for loan provision to poor households and guarantee for loan provision to poor households, the State Bank shall direct the Bank for Agriculture and Rural Development of Vietnam to continue lending capital to poor households according to previous stipulations of the Bank for the Poor until new documents are issued by the Bank for Social Policies to replace them, absolutely not interrupting the loan provision to poor households.

c) By the end of June 30, 2003, if the inventory and re-evaluation of capital, assets and old debts are not yet completed, the Bank for Social Policies shall provide new loans strictly according to the Prime Minister's Decision No. 131/2002/QD-TTg of October 4, 2002. Units currently providing loans to policy beneficiaries being subjects to be handed over to the Bank for Social Policies shall have to take initiative in preparing all relevant dossiers on loan provision and other necessary conditions, so as to well serve the work of capital and asset inventory and re-evaluation by the inter-branch team.

2. On the consolidation of the Bank's organizational system and personnel:

- The Bank for Social Policies shall concentrate efforts on directing the prompt formulation of its organizational apparatus, arrange adequate personnel from central to local level, especially in branches and transaction bureaus at grassroots; so as to put its entire organizational system into stable operation soon.

- The commercial banks, especially the Bank for Agriculture and Rural Development of Vietnam, shall have to transfer officials who have been engaged in policy credit activities and a number of officials having capability, good morality as well as heart and mind for the poor to the Bank for Social Policies.

- The People's Committees of various levels shall create the most favorable conditions, including material foundation such as offices, traveling and working facilities, for the operation of the Bank for Social Policies, especially branches and transaction bureaus in deep-lying and remote areas meeting with difficulties, and at the same time take initiative in coordinating with the Bank for Social Policies in directing the perfection of the organizational system and the completion of procedures for appointment of people to hold leading posts of the Bank's branches and transaction bureaus in their localities as soon as possible.

3. The Bank for Social Policies shall quickly mobilize capital in order to expand the provision of loans to the poor and other policy beneficiaries; ensuring that policy credit is lent continuously and smoothly, without harming citizens' legitimate interests. To soon concretize the Government's policies and mechanisms into specific professional regulations, especially the lending mechanisms and interest rates, applicable to social beneficiaries; the mechanism of entrusted loan provision and the signing of entrustment contracts; to accelerate the reception and use of transferred capital sources and assets in an efficient manner; to appoint leading officials of high professional capability and good morality so as to be able to fulfill its assigned tasks and better serve policy beneficiaries.

The Bank for Social Policies shall have to enhance the inspection and control of loan provision activities at all levels with a view to promoting its role and obtaining high efficiency right from the early days of its establishment; to take initiative in coordinating with various branches, levels, economic organizations and socio-political organizations in consolidating and expanding savings and capital borrowing groups at the grassroots, suitable to new subjects entitled to loan provision.

4. The administrations of various levels and socio-political organizations in localities shall have to jointly take responsibility for the provision of loans to policy beneficiaries in their localities, ensuring that loans are provided to the poor and policy beneficiaries and able to bring into full play their efficiency: the borrowers are able to develop production, improve their living conditions and repay bank debts. The Managing Board's representations at all levels shall have to draw up their operation programs and regularly inspect the loan provision by the Bank for Social Policies and the use of capital by the borrowers.

...

...

...

PRIME MINISTER




Phan Van Khai