| THE PRIME MINISTER OF GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No: 108/2006/QD-TTg | Hanoi, May 19, 2006 |
DECISION
ESTABLISHING THE VIETNAM DEVELOPMENT BANK
THE PRIME MINISTER
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 16, 2002 Law on the State Budget;
Pursuant to the December 12, 1997 Law on Credit Institutions and the June 15, 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the Government's Resolution No. 06/2006/NQ-CP of May 4, 2006, on the Government's April 2006 regular meeting;
Considering the proposal of the Minister of Finance,
DECIDES:
Article 1.- To establish the Vietnam Development Bank (hereinafter referred to as the Development Bank) on the basis of reorganizing the Development Assistance Fund (established under the Government's Decree No. 50/1999/ND-CP of July 8, 1999) to implement state policies on development investment credit and export credit.
International transaction name: The Vietnam Development Bank
Acronym name: VDB
The Development Bank has the legal person status, charter capital and a seal. It is allowed to open accounts at the State Bank of Vietnam, the State Treasury, and domestic and foreign commercial banks, and to join the system of payment with banks and provide payment services according to the provisions of law. The Development Bank takes over all the rights and responsibilities of the Development Assistance Fund.
Article 2.- The Development Bank shall operate on a not-for-profit basis. Its compulsory reserve ratio shall be 0% (zero per cent). The Development Bank shall not have to buy deposit insurance.
The Development Bank's payment capacity shall be guaranteed by the Government. It shall be exempted from taxes and state budget contributions according to the provisions of law.
The Development Bank's charter capital shall be VND 5,000 billion (five thousand billion dong) which shall come from the current charter capital of the Development Assistance Fund.
Adjustments to the charter capital of the Development Bank shall depend on its specific requirements and tasks, ensure the capital adequacy ratio, and be considered and decided by the Prime Minister.
The organization and operation of the Development Bank are prescribed in this Decision and in its Charter on organization and operation, which is approved by the Prime Minister.
The operation term of the Development Bank shall be 99 years from the date this Decision takes effect.
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