THE MINISTRY OF FINANCE
Circular No. 94/2013/TT-BTC dated July 08, 2013 of the Ministry of Finance guiding the financial regime for People Credit Funds
Pursuant to the Law on Credit Institutions dated June 16, 2010;
Pursuant to the Law on Cooperatives November 20, 2012
Pursuant to Decree No. 118/2008/ND-CP dated November 27, 2008 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to Decree No. 57/2012/ND-CP dated July 20, 2012 of the Government on the financial regime for credit institutions and foreign bank branches;
At the proposal of the Director of Department of Finance and financial institutions;
The Minister of Finance issues Circular guiding the financial regime for People Credit Funds,
Chapter I
GENERAL PROVISIONS
Article 1. Scope of adjustment
1. This Circular guides the financial regime for People Credit Funds;
2. The financial activities of the People's Credit Fund comply with the provisions of Decree No. 57/2012/ND-CP dated July 20, 2012 of the Government on the financial regime for credit institutions, foreign bank branches (hereinafter called Decree No. 57/2012/ND-CP); the guidance contents in this Circular and other relevant legal documents on financial management.
Article 2. Subject of application
People Credit Funds are established, organized and operating under the provisions of the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010 and the Law on Cooperatives No. 23/2012/QH13 dated November 20, 2012.
Chapter II
SPECIFIC PROVISIONS
Article 3. Owner’s equity of People Credit Funds
1. Charter capital is the contributed capital of the members stated in the charter of People Credit Funds.
2. Differences of exchange rate (if any) arising during the unfinished capital construction investment are accounted in the owner’s equity in accordance with regulations of law.
3. Difference upon asset revaluation is the difference between the book value of assets with the revaluation value of assets upon the state decision.
4. Additional reserve funds of charter capital, funds for professional development and financial reserve funds.
5. Undistributed profit.
6. Other capital owned by People Credit Funds.
Article 4. Use of capital and assets
1. People Credit Funds are responsible for the management, use and monitoring of all assets and capital available, performing the accounting in accordance with the current accounting regime, fully, accurately and promptly reflecting changes in capital and assets in the course of business, placing the responsibility and forms of treatment for each department or individual in case of damage or loss of assets and capital of funds.
2. People Credit Funds may use working capital for business operation under the provisions of the Law on Credit Institutions, the Decree No.57/2012/ND-CP and specific guidance in this Circular under the principle of safety assurance and capital development.
a) During operations, the People Credit Funds have to maintain the limit of construction investment, fixed asset purchase to directly serve the business operation on the principle that the residual value of fixed assets does not exceed 50% of the charter capital and additional reserve funds of charter capital.
b) For real estate held by the loan settlement as prescribed in Clause 3, Article 132 of the Law on Credit Institutions:
- For the real estate temporarily held by People Credit Funds for sale or transfer to recover capital, the People Credit Funds will not account to increase property, and not deduct depreciation.
- For the real estate re-purchased by People Credit Funds to directly serve the business operation, the People Credit Funds will account to increase property, and deduct depreciation as prescribed by law and ensure the limit of construction investment, purchase of fixed assets as specified at Point a, Clause 2 of this Article.
