Vietnam: The Peasant Assistance Fund shall be entitled to conduct investment and procurement of fixed assets

According to Article 6 of Circular No. 69/2013/TT-BTC of the Ministry of Finance of Vietnam, the Peasant Assistance Fund shall be entitled to conduct investment and procurement of fixed assets and other assets serving activities of the Peasant Assistance Fund. The investment and asset procurement for activities of the Peasant Assistance Fund at each level shall be implemented by the director of the Peasant Assistance Fund under the plan approved by the Executive Board of the Peasants Assistance’s Committee at the same level and in the ambit of the capital source of the development investment Fund.

Orders of and procedures for construction investment, procurement and repair of fixed assets, the Peasant Assistance Fund shall be implemented in accordance with the law regulations on investment and construction management.

The Peasant Assistance Fund shall implement the management, use, depreciation, inventory, re-evaluation, liquidation, transfer or sale of fixed assets in accordance with regulations on the existing law applicable to the enterprises.

Besides, Circular No. 69/2013/TT-BTC also stipulates deductions for setting up the risk reserve and handling risks of the Peasant Assistance Fund as follows:

- The Peasant Assistance Fund may deduct for setting up the risk reserve to make up for the loss due to causes of objective and force majeure arising in the course of loaning to assist peasants such as natural disasters (storm, flood, and drought), fire, epidemic diseases and other causes of force majeure.

- The annual deduction level for credit risk reserve shall be 0.9% of the debit balance by December 31 each year.

- The credit risk reserve fund shall be used to make up for assistance loans for peasants who meet the risk due to causes of objective and force majeure. At the end of the year, if the credit risk reserve fund still remains, the remainder of the fund shall be transferred for the following year.

- The Executive Board of the Vietnam Peasants Association’s Central Committee shall elaborate the regulation on management and use of the credit risk reserve fund for the unified implementation of Peasant Assistance Funds.

View other provisions at Circular No. 69/2013/TT-BTC of the Ministry of Finance of Vietnam, effective from July 15, 2013.

Thu Ba

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