Fund for Preservation Used to Provide Loans to Support People’s Credit Funds

21:20, 10/07/2024

This is the content mentioned in Circular 03/2014/TT-NHNN which stipulates the Fund for Ensuring the Safety of the People's Credit Fund System issued by the Governor of the State Bank of Vietnam.

Circular 03/2014/TT-NHNN stipulates the reasonable use of the Safety Fund to support the safety of the operations of the people’s credit fund system. The use of the fund must:

- The Safety Fund shall be used to lend support to the people's credit funds when they face financial difficulties and payment issues to restore normal operations.- Based on ensuring the safety of the capital source and meeting the lending support requirements for the people's credit funds, the temporarily idle capital of the Safety Fund can be:

- Deposited at the cooperative bank or commercial banks in accordance with the regulations in the Management and Use Regulation of the Safety Fund;- Used to purchase Government of Vietnam bonds, Treasury bills, and State Bank of Vietnam bills.

The dossier, procedures, time limits, and interest rates for support lending shall be implemented according to the Management and Use Regulation of the Safety Fund issued by the cooperative bank.

Additionally, Circular 03/2014/TT-NHNN also provides that the termination and liquidation of the Safety Fund shall be carried out by the decision of the State Bank of Vietnam.

See more regulations at Circular 03/2014/TT-NHNN effective from March 15, 2014.

Thu Ba

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