The Fund may use up to 10% of its equity to construct new fixed assets

To be specific, the management and use of operating capital of the Fund are regulated by Circular 28/2014/TT-BTC as follows:

- The Fund is allowed to use its operating capital to perform the functions stipulated in Decree 138/2007/ND-CP and Decree 37/2013/ND-CP, including: direct investment, lending, and capital contribution to establish economic organizations. The use of capital must ensure the principle of correct purpose and safety. Lending, direct investment, and capital contribution to establish enterprises are carried out according to contracts signed with the relevant parties in accordance with the operational regulations approved by the Fund's Board of Management.- The Fund is allowed to use a maximum of 10% of its equity capital for new construction investment, procurement, and repair of fixed assets. The authority to approve the investment limit for construction and asset procurement is stipulated in the Fund's organization and operation charter.- The Fund is responsible for implementing measures to preserve operating capital, including:

- Managing and using capital and assets in accordance with the law;- Purchasing property insurance, business risk insurance, and other types of insurance as prescribed by law;

- Setting up the following reserves:

- Risk reserves for lending activities are implemented in accordance with the provisions of Article 18 of Decree 138/2007/ND-CP;- Risk reserves for direct investment activities, reserves for bad debts are implemented according to the current regulations applicable to enterprises;

- Complying with the limits on direct investment, lending, and capital contribution to establish enterprises as stipulated in Clause 9, Article 1 of Decree 37/2013/ND-CP.- ...

For details, see Circular 28/2014/TT-BTC effective from April 12, 2014.

Thu Ba

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