DECIDES:

Article 1.- To allow the establishment of the Bank for the Poor to assist the poor in taking loans to develop production and improve their living standard, helping to materialize the goal of hunger elimination and poverty alleviation. To empower the Governor of the State Bank to issue the decision to establish this bank and license its operation.

The Bank for the Poor is a credit organization of the State which shall operate throughout the country and have the status of a juridical person, its statutory capital, asset, table of balance and seal. Its head office is located in Hanoi City.

The organization and operation of the Bank for the Poor are stipulated in details in its Statute.

Article 2.- The Bank for the Poor has the function of raising capital from organizations and individuals at home and abroad; receiving State credit for the poor and credits from other sources permitted by the State in order to set up funds to lend to the poor to implement the Government programs for the poor.

The Bank's operation is to help the poor and materialize the goal of hunger elimination and poverty alleviation, not to make profit, and is based on the preservation and development of the initial capital and self-coverage of all expenses.

The Bank for the Poor provides direct loans for poor households which have labor but lack capital, so as to help them develop production. The loans require no collateral and are to be repaid at fixed interest rates.

The Bank for the Poor shall be considered for exemption of turn-over and profit taxes so as to lessen its interest rates on the poor. The unavoidable risks which occur in the course of the operation of the Bank for the Poor are to be compensated with risk funds as provided for by the Financial Regulation of the Ministry of Finance. The said policies shall be stipulated in the related documents of the Government.

Article 3.- The organization of the Bank for the Poor is composed of:

- The Managing Board.

- The Transaction Center.

1. The Managing Board: The Managing Board is the managerial body of the Bank for the Poor, the membership of which comprises authorized representatives assigned by the Office of the Government, the State Planning Committee, the Ministry of Labor, War Invalids and Social Affairs, the State Committee for Nationalities and Mountainous Areas, the Ministry of Agriculture and Food Industry, the Ministry of Finance, the State Bank, the Vietnam Women's Union and the Vietnam Farmers' Association; the representatives of a number of domestic organizations which contribute capital to the Bank for the Poor, who are appointed by the Governor of the State Bank, and the General Director of the Vietnam Bank of Agriculture.

The members of the Managing Board, the President of the Board and the Vice-President of the Board are to be recommended by the Governor of the State Bank upon consultation with the Minister-Chairman of the Government Commission on Organization and Personnel, to the Prime Minister for approval. The Managing Board shall nominate its standing members and a General Inspector. In provinces and cities directly under the Central Government, and at districts and provincial towns and cities, there shall be representatives of the Managing Board of the Bank for the Poor who shall be appointed by the Presidents of the People's Committees at the same level, under the guidance of Managing Board of the Bank for the Poor.

2. The Transaction Center is headed by the General Director. The General Director is assisted by a staff that includes a number of Deputy General Directors and a number of specialized bureaus. The General Director and the Deputy General Directors shall be recommended by the Managing Board and appointed by the Governor of the State Bank. The operation of the transactions at provinces and cities directly under the Central Government, and at districts, provincial towns and cities, shall be conducted by the Vietnam Bank of Agriculture.

The Governor of the State Bank is responsible for approving the statute on organization and operation of the Bank for the Poor, after consulting with the Prime Minister; and for coordinating with the concerned offices in the implementation of this Decision.

The Minister-Chairman of the State Planning Committee shall have to discuss with the Minister of Finance on a plan subject to approval by the Prime Minister to mobilize capital support from the State budget for yearly and five-yearly periods for the Bank for the Poor.

The Minister of Labor, War Invalids and Social Affairs shall, in coordination with the Minister of Agriculture and Food Industry and the Heads of other concerned offices, publicize norms for classifying poor persons and areas at each period of time to serve as basis for the Bank for the Poor to make loans.

The Minister of Finance shall submit to the Government a plan for solutions of a number of financial issues as described in Article 2 of this Decision.

Article 5.- The Vietnam Women's Union, the Vietnam Farmers' Association and the other people's organizations should mobilize their members to join in the implementation of the State decision to avail loans to the poor to help them develop production, so as to realize the goal of hunger elimination and poverty alleviation; to contribute to the efforts of the specialized agencies of the Government in working out policies; and to monitor and supervise the operation of the Bank for the Poor.

Article 6.- This Decision takes effect from the date of its signing.

The Governor of the State Bank, the Ministers, the Heads of the Agencies at ministerial level, the Heads of the Agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government, and the President of the Managing Board of the Bank for the Poor, are responsible for the implementation of this Decision.-

Prime Minister