Sources of finance for loans for ex-convicts in Vietnam

Sources of finance for loans for ex-convicts in Vietnam (Internet image) 

1. Who are ex-convicts under the law in Vietnam?

According to the provisions of Point a, Clause 1, Article 3 of Decision 22/2023/QD-TTg, ex-convicts, including persons who have fully served their prison sentences and are granted certificates of completion of prison sentences prescribed in the Law on Criminal Judgment Enforcement 2019 and persons who are granted pardons and certificates thereof prescribed in the Law on Pardon 2018

2. Sources of finance for loans for ex-convicts in Vietnam

Regulations on sources of finance for loans for ex-convicts in Vietnam are stipulated in Article 11 of Decision 22/2023/QD-TTg as follows:

- Financial sources from annual local government budgets entrusted to the VBSP for giving loans.

- Subsidies on interest rate differences and management fees granted by the State budget mobilized by the VBSP in accordance with regulations.

- Other financial sources.

3. Regulations on the organization providing credit packages for ex-convicts in Vietnam

According to Article 14 of Decision 22/2023/QD-TTg, the competent agencies and organizations providing credit packages for ex-convicts in Vietnam include:

Customers taking out bank loans shall be responsible for using them for the right purposes and repaying them adequately and timely to the VBSP.

- The Ministry of Public Security

+ Direct detention centers to disseminate policies specified in Decision 22/2023/QD-TTg;

+ Direct police authorities of provinces and districts to cooperate with departments and local authorities and districts and relevant authorities of provinces in counseling the People's Councils and the People’s Committees of provinces and districts to allocate financial sources from local government budgets entrusted to the VBSP for giving loans to ex-convicts. Closely cooperate with the VBSP during the supervision of grant of loans and debt recovery;

+ Direct police authorities of communes to, on the 5th of every month, prepare and provide lists of ex-convicts wishing to and qualified for taking out bank loans (using Form No. 01 enclosed with Decision 22/2023/QD-TTg) to the VBSP as the basis for granting loans;

+ Take charge and cooperate with ministries, central authorities, relevant authorities and the VBSP in organization and implementation of Decision 22/2023/QD-TTg; propose handling of issues arising and difficulties during the implementation thereof and amendments to this Decision (if necessary).

- The Ministry of National Defense

Direct detention centers affiliated to the Ministry of National Defense to disseminate policies specified in Decision 22/2023/QD-TTg.

- The VBSP

+ Provide guidance on the contents specified in Article 13 of Decision 22/2023/QD-TTg;

+ Manage, mobilize and use financial sources, give loans to qualified entities according to regulations in Decision 22/2023/QD-TTg;

+ Cooperate with ministries and central authorities in submitting reports to competent authorities for promptly solving difficulties during the lending period in accordance with regulations in Decision 22/2023/QD-TTg.

- Ministries, ministerial agencies, Governmental agencies shall cooperate with the Ministry of Public Security, the Ministry of National Defense and the VBSP during the implementation of this Decision under their jurisdiction.

- The People’s Committees of provinces and districts

+ Annually consider allocation of local government budgets entrusted to the VBSP for giving loans in accordance with regulations of law;

+ Direct departments, local authorities and relevant units to propose to competent authorities to approve and entrust annual local government budgets to the VBSP for giving loans;

+ Direct the People’s Committees of communes to confirm the borrowers' eligibility for receiving policies specified in Article 3 of Decision 22/2023/QD-TTg;

+ Cooperate with Vietnamese Fatherland Front, socio-political organizations and the VBSP in disseminating policies; organize and supervise the implementation of Decision 22/2023/QD-TTg.

Vo Tan Dai

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