Article 2.- The Social Policy Bank may mobilize capital from domestic and foreign organizations and individuals, and receive capital sources from the Government and the People�s Committees at all levels in order to provide loans for the poor and other policy beneficiaries.

Article 3.- The Social Policy Bank shall operate for non-profit purposes, its solvency shall be guaranteed by the State, the compulsory reserve rate shall be 0% (zero percent), it shall not have to participate in deposit insurance and be exempt from taxes and State budget remittances.

Article 4.- The organizational structure of the Social Policy Bank consists of:

- The head-office located in Hanoi capital;

- Branches located in the provinces and centrally-run cities;

- Transaction bureaus located in rural and urban districts as well as provincial cities. Where necessary, the district-level branches of the Social Policy Bank may be set up, which shall be decided by the Managing Board of the Social Policy Bank.

The tasks, powers and organizational structures of the head office, branches and transaction bureaus shall be decided by the Managing Board of the Social Policy Bank.

Article 5.- Management and administration of the Social Policy Bank

1. Administering the Social Policy Bank shall be the Managing Board.

2. Managing the operation of the Social Policy Bank shall be the general director.

Article 6.- Managing Board of the Social Policy Bank

1. The Managing Board is composed of 12 members, including 09 part-time members and 03 full-time members. 09 part-time members include the Governor of Vietnam State Bank being the Managing Board�s chairman, and vice-ministers or persons of equivalent post of the Ministry of Finance, the Ministry of Planning and Investment, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Agriculture and Rural Development, the Nationalities Committee, and the Government�s Office, vice-president of Vietnam Peasants� Association and vice-president of Vietnam Women�s Union being the 08 other part-time members; 03 full-time members include 01 member being the standing vice-chairman, 01 member being the general director, and 01 member being the head of the Control Board.

2. The term of office of the Social Policy Bank�s Managing Board members is 5 years, and they may be re-appointed.

3. The Prime Minister shall appoint and dismiss the chairman, the vice-chairman and members of the Managing Board, and the general director.

4. In the provinces and centrally-run cities; urban and rural districts as well as provincial towns and cities, the Managing Board�s representative boards shall be set up with presidents or vice-presidents of the People�s Committees of the same level as their heads. The presidents of the People�s Committees of the same level shall decide on personnel of the Managing Board�s representative boards.

5. The tasks and powers of the Managing Board and its representative boards of various levels shall comply with the Organization and Operation Charter of the Social Policy Bank.

6. The Managing Board and its representative boards of various levels may use the apparatuses and seals of the Social Policy Bank�s offices of the same level in order to perform their tasks.

7. Part-time members of the Managing Board, the Managing Board�s representative boards of various levels, the commune-level officials and other individuals working for the Social Policy Bank shall be entitled to remuneration and other interests as prescribed by the Ministry of Finance.

Article 7.- Managing the operation of the Social Policy Bank is the general director. The general director is the legal person representative of the Social Policy Bank. The general director shall be assisted by a number of deputy general directors.

The Managing Board�s Chairman shall sign the appointment and dismissal of deputy general directors.

The tasks and powers of the general director shall comply with the Organization and Operation Charter of the Social Policy Bank.

Article 8.- Financial, salary and allowance regimes for officials and employees, as well as the setting up and use of the Social Policy Bank�s funds shall be decided by the Prime Minister.

1. The ministries, the ministerial-level agencies and the socio-political organizations named in Clause 1, Article 6 of this Decision shall have to appoint their officials to participate in the Managing Board of the Social Policy Bank.

2. The Ministry of Planning and Investment shall guide the operation registration of the Social Policy Bank and coordinate with the Ministry of Finance in submitting to the Prime Minister the allocation of charter capital to the Social Policy Bank according to the provisions in Article 1 of this Decision.

3. The Minister of Finance shall submit to the Prime Minister for promulgation the Regulation on financial management of the Social Policy Bank, loan capital plan and loss-offsetting allocation plan in the annual and 5-year State budget estimates.

4. The Minister of Labor, War Invalids and Social Affairs shall submit to the Prime Minister for promulgation the salary and allowance regimes for officials and employees of the Social Policy Bank.

5. The Minister of the Interior shall submit to the Prime Minister the appointment and dismissal of the chairman, the vice-chairman, the general director and members of the Managing Board.

Article 10.- This Decision takes effect after its signing, annulling the Prime Minister�s Decision No. 525/TTg of August 31, 1995, the Vietnam State Bank Governor�s Decision No. 230/QD-NH5 of September 1, 1995 and relevant documents� provisions contrary to this Decision.

Article 11.- The Governor of Vietnam State Bank shall direct Vietnam Bank for Agriculture and Rural Development and the Bank for the Poor to transfer the task of lending capital to poor households; hand over capital, property, relevant documents and officials currently working on a full-time basis for the Bank for the Poor to the Social Policy Bank in order to ensure that the latter shall commence its operation on January 1, 2003.

The Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Agriculture and Rural Development, the People�s Committees of all levels and State commercial banks shall have to inventory and evaluate capital, property and preferential loan debts of policy beneficiaries, and transfer them to the Social Policy Bank before June 30, 2003. When the transfer is not completed the above-said agencies and organizations shall continue providing loans to social policy beneficiaries according to current regulations.

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 chairman of the Managing Board of the Social Policy Bank shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI