Vietnam: Responsibilities and entitlement of credit guarantee fund

Decree No. 34/2018/ND-CP of Vietnam’s Government specifies the responsibilities and entitlement of credit guarantee fund as follows:

Responsibilities of credit guarantee fund:

- Extend credit guarantees to eligible SMEs meeting conditions as prescribed;

- Use capital with proper purposes to extend credit guarantees to SMEs;

- Apply regulations on accounting, statistics and financial statements prescribed in this Decree and relevant laws;

- Be subject to inspection and audit of competent authorities as per the law;

- Provide data and publish its operation regulations, financial regime, financial plans, performance and annual financial statements that are audited as prescribed in this Decree and relevant laws;

- Buy property insurance, risk insurance in credit guarantee activities and other types of insurance as prescribed in law to maintain the safety of the credit guarantee fund;

- Strictly comply with laws of the state and relevant laws on operation of credit guarantee funds.

Entitlements of credit guarantee fund:

- Operate in conformity with its objectives and scope as prescribed in this Decree;

- Choose investment projects, business plans which are deemed feasible and efficient and conformable with the socio-economic development plan of the People's Committee of province and meet statutory conditions to extend credit guarantees;

- Recruit, employ and train employees as prescribed in this Decree, the charter of organization and operation of credit guarantee fund and relevant laws;

- Refuse any request for information disclosure and provision of resources made by any individual or organization if this request is in contravention of laws and regulations and charter of organization and operation of the credit guarantee fund.

Decree No. 34/2018/ND-CP of Vietnam’s Government takes effect from March 08, 2018.

-Thao Uyen-

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