Decision 20/2017-QD-TTg, date 12/6/2017 on regulations on activities of microfinance programs and projects
On June 12, 2017, the Prime Minister issued Decision No. 20/2017 / QD-TTg regulating the activities of microfinance programs and projects of political organizations, society, non-governmental organization.
Subjects of application under the Decision are political organizations, socio-political organizations and non-governmental organizations; The ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and cities, the organizations and individuals involved in the operation of microfinance programs and projects of political organizations, Socio-political organizations and non-governmental organizations.
1. Conditions for registration of microfinance program or project
Political organizations, socio-political organizations and non-governmental organizations must register according to the provisions of this Decision when implementing microfinance programs or projects.
Political organizations, socio-political organizations and non-governmental organizations which are granted certificates of registration of microfinance programs or projects (hereinafter referred to as registration certificates) when ensuring the conditions as follows: Having lawful microfinance capital in accordance with the law; Having organizational structure of the microfinance program or project as provided for in Article 10 of this Decision; Managers of microfinance programs and projects with at least one university degree in one of the fields of economics, banking, finance, accounting, business administration or at least 01 years of experience in banking operations or microfinance operations; Having internal regulations for the implementation of microfinance programs and projects; The Ministry of Foreign Affairs and the Ministry of the Interior agree to the implementation of microfinance programs and projects for non-governmental organizations licensed by the Ministry of Foreign Affairs and the Ministry of the Interior; To be authorized by the people’s committee of a province or city under central authority or a people’s committee of a district or ward at the ward or commune level under the authority of the people’s committee of a province or city under central authority. called the competent People’s Committee) to agree on the implementation of the microfinance program or project in the locality.
2. Dossiers of registration of microfinance program or projects
The decision also states that the application file for registration of a microfinance program or project shall comprise: 1. A written record of registration of the microfinance program or project shall be made according to Form No. 01 issued together with Decision this; 2. Documents on the establishment and operation of political organizations, socio-political organizations and non-governmental organizations; A written explanation of the origin of capital for implementation of the microfinance program or project; 4. The organizational structure, management management and tentative control of the microfinance program or project; 5. Curriculum vitae of the proposed manager and executive, and dossiers evidencing that the manager or executive meets the criteria prescribed at Point c, Clause 2, Article 4 of this Decision; 6. Drafting of internal regulations as stipulated in Article 11 of this Decision.
3. Implement microfinance programs and projects
With regard to the implementation of microfinance programs and projects, the Decision stipulates the following: At least 30 days before the implementation of microfinance program or project, political organization socio-political organizations, non-governmental organizations must: Have an organizational structure as stipulated in Article 10 of this Decision; To have documents on allocation and allocation of micro-finance; appointment of manager or executive; To issue internal regulations for microfinance programs and projects; Having working offices, means and necessary equipment, ensuring the convenience and safety for the operation of microfinance program or project.
To publicly announce at headquarters of microfinance programs and projects and announce them on the mass media or radio means in the localities where the microfinance program or project is operating. The operation scope, scope of operation, area of operation, microfinance clients of the microfinance program or project shall be at least 03 working days before the operation day.
4. Contents of operations of microfinance programs and projects
Fund raising activities of the microfinance program or project shall be implemented in the following forms: receiving grants, non-refundable aid, refunded by the Government, organizations and individuals in domestic and foreign; Accepting compulsory savings deposits, voluntary savings deposits of microfinance clients. The total amount of voluntary savings deposits shall not exceed 30% of the total allocated capital of the microfinance program or project; Borrow from credit institutions, financial institutions, domestic and foreign organizations in accordance with the provisions of law.
The lending activities of the microfinance program or project shall be effected as follows:
Loans to microfinance clients on the principle of: autonomy in lending activities and take responsibility for their lending decisions; As agreed between the program, microfinance project and microfinance client, ensure safety in accordance with the law. Loan agreement content between microfinance programs, microfinance projects and microfinance clients must be documented in which at least one.
Please find the detailed document in the attached below: Decision 20_2017_QD-TTg_120617_CP_English Version
