Vietnam: What is the operation capital source of the Peasant Assistance Fund used for?

According to Article 4 of Circular No. 69/2013/TT-BTC of the Ministry of Finance of Vietnam, the operation capital source of the Peasant Assistance Fund shall be used to assist peasants, in formulating and expanding models of economic development for hunger elimination, poverty reduction, raising production scale and goods productions, development of trades; contributing in economic restructuring and development of rural collective economic forms; creating jobs, promoting application of technical advances and new technologies in agricultural production, exploiting potentials and strength of area to create the agricultural products, goods and services that meet quality and are high effective.

Capital shall be provided as assistance to peasants in form of interest-free refundable assistance loans (within given limits and terms), and with fee collection. The Peasant Assistance Fund shall have to manage and use capital for the right purposes, the right subjects and with efficiency, promptly and fully recover capital amounts lent as assistance to peasants in order to preserve its capital, and then refund fully and promptly to organizations and individuals financed capital for the Peasant Assistance Fund.

Notably, the Peasant Assistance Fund must not use its operation capital for the business purpose of earning profits from monetary trading, securities investment, real estate trading, financial investment and other business activities.

The Executive Board of the Vietnam Peasants Association’s Central Committee shall guide mechanism so that Peasant Assistance Funds provide refundable assistant loans to peasants, in which clearly defining the loan subjects and conditions, duration and loan capital level, returning of loan capital.

View relevant 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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