Circular No. 37/2019/TT-BTC: Capital of microfinance programs/projects in Vietnam

MF programs/projects are established and operating in Vietnam as prescribed in Decision No. 20/2017/QĐ-TTg of the Prime Minister of Vietnam. According to Circular No. 37/2019/TT-BTC of the Ministry of Finance of Vietnam, capital of MF programs/projects includes:

First of all, capital of MF programs/projects

* Capital intended for implementation of an MF program/project includes:

- Capital allocated, granted to MF program/project by political organizations, socio-political organizations, and/or non-governmental organizations;

- Contributed capital of organizations and individuals (if any);

- Aids, grant aids of organizations and individuals.

* Difference upon asset revaluation means a difference between the book value of asset and value of asset revaluation under a decision made by the regulatory body or determined under other evaluations as per the law.

* A fund allocated for preparation and implementation of MF program/project and other funds built up as prescribed.

* Cumulative retained profits; unsettled cumulative losses (if any).

* Other capital under legal ownership of MF program/project as per the law.

Second, capital raised in certain forms:

- Taking compulsory saving deposits, voluntary saving deposits from microfinance clients as prescribed of the MF program/project. Total voluntary saving deposit may not exceed 30% of total allocated capital of the MF program/project.

- Capital from entrustment for lending given by the Government, organizations or individuals as per the law.

- Borrowed capital of credit institutions, financial institutions, other organizations as per the law.

- Aids, grant aids, concessional loans of the Government, local and foreign organizations or individuals.

Third, other capital as per the law.

View relevant provisions at Circular No. 37/2019/TT-BTC of the Ministry of Finance of Vietnam, effective from August 09, 2019.

Thu Ba

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