THE PRIME MINISTER OF GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 193/2001/QD-TTg
Hanoi, December 20, 2001
 
DECISION
ISSUING THE REGULATION ON THE SETTING UP, ORGANIZATION AND OPERATION OF CREDIT GUARANTEE FUNDS FOR SMALL- AND MEDIUM-SIZED ENTERPRISES
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Government’s Decree No.90/2001/ND-CP of November 23, 2001 on support for development of small- and medium-sized enterprises;
At the proposal of the Finance Minister,
DECIDES:
Article 1.- To issue together with this Decision the Regulation on the setting up, organization and operation of credit guarantee funds for small- and medium-sized enterprises.
Article 2.-The Finance Minister shall have to guide the implementation of this Decision.
Article 3.-This Decision takes effect 15 days after its signing.
The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities and the General Director of the Development Assistance Fund shall have to implement this Decision.
 
REGULATION
ON THE SETTING UP, ORGANIZATION AND OPERATION OF CREDIT GUARANTEE FUNDS FOR SMALL- AND MEDIUM-SIZED ENTERPRISES
(Issued together with the Prime Minister’s Decision No.193/2001/QD-TTg of December 20, 2001)
Chapter I
GENERAL PROVISIONS
Article 1.-This Regulation prescribes the setting up, organization and operation of credit guarantee funds (CGFs) for small- and medium-sized enterprises (SMEs) in the provinces and centrally-run cities (hereafter referred to as CGFs for short).
CGFs shall be set up and managed by the People’s Committees of the provinces and centrally-run cities in order to grant credit guarantee to SMEs.
Article 2.-Each CGF is a financial institution operating for non-profit purposes, ensuring the recovery of capital and self-payment of expenses. It has legal person status, charter capital, balance sheet and its own seal and may open accounts at the State Treasury and domestic commercial banks.
CGFs shall be exempt from tax payment and State budget remittances for their activities of granting credit guarantee to SMEs.
Article 3.-A CGF’s operation capital shall be created from the following sources:
1. Charter capital, including:
a/ Capital allocated from the budget of a province or centrally-run city, which must not exceed 30% of the minimum charter capital prescribed in Article 4 of this Regulation;
b/ Capital contributed by credit institutions;
c/ Capital contributed by enterprises;
d/ Capital contributed by production and/or business associations, organizations representing and supporting SMEs.
2. Lawful aid capital (including ODA capital) provided by organizations and individuals inside and outside the country for the purpose of developing SMEs, cooperatives as well as agricultural, forestry and fishery development programs.
3. Capital supplemented from the results of operation of CGFs as prescribed.
Chapter II
SETTING UP OF CGFS
Article 4.-Setting-up conditions
1. Having enough charter capital of at least VND 30 billion.
2. Having a list of the expected Management Council, Control Board and Executive Board members with full civil act capacity and professional qualifications suitable to operation requirements of the CGF.
 
  FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Nguyen Tan Dung