Decree No. 138/2007/ND-CP dated August 28, 2007 of the Government on the organization and operation of local development investment Funds
SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom - Happiness
Hanoi, August 28, 2007
ON THE ORGANIZATION AND OPERATION OF LOCAL DEVELOPMENT INVESTMENT FUNDS
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 26, 2003 Law on Organization of Peoples Councils and Peoples Committees;
Pursuant to the December 16, 2002 State Budget Law;
Pursuant to the November 29, 2005 Investment Law;
Pursuant to the December 12, 1997 Law on Credit Institutions and the May 16, 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
At the proposal of the Minister of Finance,
Article 1. Governing scope
This Decree provides for the organization and operation of local Development Investment Funds set up by provinces or centrally run cities.
Article 2. Interpretation of terms
In this Decree, the terms below are construed as follows:
1. Operating capital means the total of owner capital and raised capital of a local Development Investment Fund at a given point of time.
2. Direct investment in projects means investment by a local Development Investment Fund of its operating capital in projects, whereby the Fund may directly manage the projects in accordance with the law on investment and construction management.
3. Syndicated lending means joint provision by a local Development Investment Fund and other organizations of loans for investment in a project, whereby the Fund or another organization acts as the major coordinating body.
Article 3. Legal status of local Development Investment Funds
1. A local Development Investment Fund is a locally based state financial institution functioning to make financial and development investments. A local Development Investment Fund has the legal person status, charter capital, its own balance sheet and seal. It may open accounts at the State Treasury and commercial banks lawfully operating in Vietnam.
2. The name of a local Development Investment Fund is Development Investment Fund combined with the name of a province or centrally run city.
Article 4. Scope of activities of local Development Investment Funds
A local Development Investment Fund may carry out the following activities:
1. To raise medium- and long-term capital from domestic and foreign organizations and individuals in accordance with law.
2. To make investment, including direct investment, in projects; to provide investment loans; to contribute capital to setting up enterprises engaged in socio-economic infrastructure development.
3. To entrust others to provide investment loans and recover debts; to be entrusted to manage investment capital, provide investment loans, recover debts, allocate investment capital and issue local administration bonds in order to raise capital for local budgets under authorization of Peoples Committees of provinces or centrally run cities (below referred to as provincial-level Peoples Committees for short).
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