Management and use of capital and assets of microfinance program/project in Vietnam

The MF program/project is responsible for managing and using its capital and assets as per the law and in accordance with specific guidelines in Circular No. 37/2019/TT-BTC of the Ministry of Finance of Vietnam. Some notable contents on management and use of capital and assets of MF program/project are as follows:

- Monitor and do bookkeeping of these capital and assets independently of other capital and assets of the political organization, socio-political organization, or non-governmental organization.

- The MF program/project shall do bookkeeping as prescribed by the Ministry of Finance; sufficiently, accurately, and promptly reflect the use and fluctuations of the capital and assets during the business process; stipulate liabilities and actions to be taken against each department and individual if they cause damage or loss to the capital and assets of the MF program/project.

- With respect to leased assets, MF program/project is responsible for managing, maintaining or using as agreed in accordance with laws and regulations.

- The loan loss reserves of the MF program/project shall be set aside and used in accordance with regulations applicable to microfinance institutions.

Besides, Circular No. 37/2019/TT-BTC also specifies revenues of the MF program/project, including:

- Revenue from interests and similar income, including:

+ Interests on deposits at credit institutions.

+ Interests on loans taken out by microfinance clients.

+ Other revenues from credit activities as per the law.

- Revenue from services activities, including:

+ Revenue from entrustment for lending services.

+ Revenue from consulting services, support and training provided for microfinance clients related to area of microfinance activities.

+ Revenue from agents providing insurance products.

- Revenue from exchange differences as prescribed in accounting standards and applicable regulations and laws.

- Revenue from voluntary contribution, legal sponsorships of local and foreign organizations and individuals to be included in the income as per the law.

- Other revenues as per the law, including:

+ Revenue from reversion of provisions.

+ Revenue from debts settled by loan loss reserves, written off debts, recovered debts creditors of which are lost or unidentifiable.

+ Revenue from fines imposed on clients, damages paid by clients because of their breaches of contracts.

+ Revenue from insurance payout subtracting the payment of insurance premiums.

+ Revenue from liquidation of assets.

+ Other revenues.

View other 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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