Add 300 billion VND to the Cooperative Development Support Fund
Deputy Prime Minister Vuong Dinh Hue assigned the Ministry of Finance to complete the draft Decision amending and supplementing Decision No. 246/2006/QD-TTg dated October 27, 2006 of the Prime Minister on the establishment of the Cooperative Development Support Fund and guidance on the credit guarantee mechanism.
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| Many agricultural service cooperatives in Nghe An boldly invest in agricultural machines to provide services to farmers. Illustration photo: Thanh Le |
Including the addition of the credit guarantee and post-investment interest rate support mechanism of the Fund to the Prime Minister in December 2016. This is the content of the Conclusion Notice of Deputy Prime Minister Vuong Dinh Hue on the contents related to the Cooperative Development Support Fund.
The announcement stated that the amendment and supplement to Decision No. 246/2006/QD-TTg dated October 27, 2006 of the Prime Minister is necessary to effectively implement the Resolutions of the Central Committee and the National Assembly on agriculture, farmers and rural areas. The Fund operates on the principle of a focused and key market with the main subjects being cooperatives in the agricultural sector, producing key regional products and key national products.
| Support should be based on specific programs and projects developed by the Fund and approved by the Fund Management Board (no widespread support). Regarding the Fund's charter capital, it should be supplemented so that the Fund's charter capital reaches VND500 billion in 2018 and VND1,000 billion in 2020. The Deputy Prime Minister assigned the Ministry of Finance to preside over and coordinate with the Ministry of Planning and Investment to submit to the Prime Minister a decision to advance VND300 billion from the central budget to supplement the Fund's charter capital in 2017. |
» Nghe An: 30 billion VND to support cooperative development
The Fund focuses on credit guarantee activities and post-investment interest rate support. Working capital lending is carried out in accordance with Government regulations. Regarding credit guarantee, 100% of loans are guaranteed for selected projects. Appropriate guarantee fees are prescribed to ensure marketability and accountability of participating parties; the Fund Management Board considers and decides on cases of free guarantee fees.
Regarding post-investment interest rate support, the study stipulates an appropriate level of support. The source for post-investment interest rate support comes from the state budget and other legal sources, not from the Fund's annual revenue-expenditure difference.
The Deputy Prime Minister assigned the Ministry of Finance to be responsible for guiding, inspecting and supervising the Fund in implementing credit guarantees and post-investment interest rate support; presiding over and coordinating with the Ministry of Planning and Investment to arrange resources to supplement the Fund's charter capital according to the above roadmap, reporting to the Prime Minister; presiding over and coordinating with ministries, agencies and localities to develop regulations for the Fund for Supporting the Development of Cooperatives in localities, reporting to the Prime Minister in the fourth quarter of 2017.
PV
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