Download decision of the prime minister

Biên dịch: Phạm Thị Thanh An-HTQT
THE PRIME MINISTER
________
No. 107/2006/QĐ-TTg
SOCIALIST REPUBLIC ÒF VIETNAM
Independence-Freedom-Happiness
_______________________
Hanoi, May 18th 2006
(Dịch từ Văn bản quy phạm pháp luật trên Website)
DECISION OF THE PRIME MINISTER
On credit for students
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THE PRIME MINISTER
Pursuant to the Law on Organization of the Government dated
December 25th 2001;
Pursuant to Decree No 78/2002/ND-CP dated October 4th 2002 by
the Government on Credit for the poor and other policy clients;
At the proposal of the Minister of Financial Ministry.
DECIDES:
Article 1. Target clients:
Disadvantaged students studying at Universities, colleges or
vocational training schools regulated at Article 2 of the Decree No
78/2002/ND-CP dated October 4th 2002 by the Government.
Article 2. Lending purposes:
Lending purposes are to pay tuition, buy training materials and
cover other expenses occurring during their study.
Article 3. Target clients regulated at the Article 1 of this Decision
have to get following eligibilities:
1. Disadvantaged students living in households with legal
residence or those with long-term temporary residence at their locality.
2. Disadvantaged students study fulltime at universities, colleges
and vocational training schools with over a year of training time.
Article 4. Credit Principle:
VBSP lends the disadvantaged students via their family. Their
family represent for them to directly borrow and repay loans for VBSP
and take responsibility under law’s regulations.
Article 5. Loan size:
Loan size for disadvantaged students is decided by VBSP in
accordance with financial resources of the Bank and loan demand of
the target clients. Loan size is determined according to studying month,
year or training courses and it is announced by VBSP.
Article 6. Loan term:
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Biên dịch: Phạm Thị Thanh An-HTQT
1. Loan term is period from date of receiving to repaying loans
(principal and interest) of the disadvantaged students agreed in credit
contract. Loan term includes disbursement and repayment term.
2. The disbursement term is period from date of receiving the first
loan of the target clients to graduation day, including time the students
are allowed to be legally absent from school and they are kept their
studying results (if any). The disbursement term is divided into
disbursement schedules by VBSP.
3. Loan repayment term is period from date of repaying the first
debt of total debt to repaying fully both principal and interest of the
disadvantaged students. Maximum loan repayment term is equivalent
to the disbursement term. Loan repayment term is divided into
installments by VBSP.
Article 7. Lending interest rate:
1. Lending interest rate is decided to be similar to the lending
interest one for poor households by the Prime Minister.
2. Overdue loans will be charged at the rate of 130% of the
ordinary rate.
Article 8. Borrowing dossier:
1. Target clients have to fulfill the borrowing dossier under
regulation of VBSP for poor households.
2. Borrowing students have to be confirmed in written documents
by the Universities, colleges and vocational training schools where
they are studying.
Article 9. Lending process and procedure is regulated simply,
obviously and easily in implementing by VBSP
Article 10. Principal and interest repayment:
1. In disbursement term, the disadvantaged students do not have
to repay both principal and interest. The interest is accounted from the
date of receiving the first loan to the date of repaying both principal
and interest of the disadvantaged students. For occurred interest in the
disbursement term, VBSP will come to an agreement with the
disadvantaged students to specify repayment schedules in repayment
term.
2. The borrowing students have to repay the first installment both
in principal and interest within 6 months since the graduation date.
Article 11. Adjustment, extension of repayment schedules, and
overdue loan transference.
1. On repayment schedule of both principal and interest written in
the credit contract, if the disadvantaged students are unable to repay
their debts and they give the bank a petitionary letter for considering
their debt repayment schedule, VBSP will make an examination and
adjusting the debt repayment schedule.
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Biên dịch: Phạm Thị Thanh An-HTQT
2. On final repayment schedule of both principal and interest
written in the credit contract, if the disadvantaged students are unable
to repay partially or fully their final debts and they give the petitionary
letter of considering their debt repayment schedule, VBSP will make
an examination and loan extension. Maximum loan extension term is
a half of total repayment term regulated at item 3 article 6 of this
decision.
3. In case that the disadvantaged students do not repay final debt
on due date and they do not allowed to extend their loans, VBSP will
transfer their loans into overdue loans. VBSP will coordinate with local
authority, socio-political associations to collect debt.
4. VBSP specifically regulates adjustment of loan repayment
schedule, loan extension and overdue loan transference.
Article 12. Handling risks happened by objective reasons:
Handling risky debts happened by objective reasons is
implemented under regulation of risky debt handling of VBSP.
Article 13. Responsibility of relevant agencies:
1. Ministry of Finance
a) To preside over, cooperate with relevant ministries, local
authorities to assign criterion for disadvantaged students and guide,
inspect and supervise implementing this decision.
b) To cooperate with Ministry of Planning and Investment to
formulate an annually complementary credit plan and a plan of interest
disparity subsidy to assist VBSP to do its assignment.
2. Ministry of Planning and Investment
To preside over, cooperate with Financial Ministry to formulate the
credit plan for students in total annually complementary lending funds
for VBSP to lend the poor and other policy clients and the plan of
interest disparity subsidy for VBSP to submit the Prime Minister.
3. Ministry of Training and Education
To direct universities, colleges, vocational training schools in the
whole country to confirm studying status for students simply, quickly,
and favorably to promote the Bank’s lending agreement.
4. Within its function and tasks, the State Bank of Vietnam directs
VBSP to formulate a lending process, procedure. The State Bank of
Vietnam also inspects and supervise the implementing of credit policy
for disadvantaged students of VBSP.
5. People Committee at provinces, cities under the Central
Government.
To direct functional agencies and People Committees at all levels
to implement the credit policy for disadvantaged students correctly
under the law and this decision.
Article 14. Implementation:
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Biên dịch: Phạm Thị Thanh An-HTQT
1. This Decision is effective after 15 days on official gazette date
and it replaces for the Decision No 51/1998/QĐ-TTg dated March 02nd,
1998 on Training Fund Formulating of the Prime Minister.
2. Ministers, Heads of ministerial agencies, Heads of
Government’s agencies, Chairmen of People Committee at provinces,
cities under the Central Government, Board of Directors, General
Directors of VBSP are responsible for implementation of this decision.
THE PRIME MINISTER
(Signed)
Phan Văn Khải
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