Deputy Prime Minister Vuong Dinh Hue directed to supplement the fund to support cooperative development.

On the afternoon of November 14, Politburo member, Deputy Prime Minister Vuong Dinh Hue and leaders of ministries and branches listened to and gave opinions on the draft Decision amending and supplementing Decision No. 246/2006/QD-TTg on the establishment of the Cooperative Development Support Fund and the draft Decision of the Prime Minister on the Regulations on credit guarantees and post-investment interest rate support of this fund.

The drafting agency, the Ministry of Finance, said that the drafting of the above two decisions aims to implement Decree No. 193/2013/ND-CP of the Government detailing a number of articles of the Law on Cooperatives.

Deputy Prime Minister Vuong Dinh Hue speaks at the meeting. Photo: VGP/Thanh Chung

At the meeting, relevant ministries and branches gave their opinions on the contents of supplementing charter capital for the Cooperative Development and Support Fund; funding for implementing post-investment interest rate support and free credit guarantee support; subjects eligible for credit guarantees and post-investment interest rate support; debt classification, risk provisioning, risk handling; post-investment interest rate support, sources for implementing interest rate support and responsibilities of the State Bank.

Concluding the working session, Deputy Prime Minister Vuong Dinh Hue emphasized the necessity of the Cooperative Support Fund in implementing the Central Resolutions on the development of cooperative economy, agriculture, rural areas and farmers.

Regarding the amendment and supplementation of Decision No. 246 of the Prime Minister, Deputy Prime Minister Vuong Dinh Hue requested the Ministry of Finance and relevant agencies to clearly identify the focus and key points of the fund's support, according to the principle of the State and the people working together, focusing on investing in cooperatives operating in the agricultural sector, with products bearing national and regional brands.

In particular, the fund only builds and supports cooperatives according to specific programs and projects approved by competent authorities.

The Government leader also requested the Ministry of Finance to coordinate with the Ministry of Planning and Investment to find sources (from the State budget, ODA, State-owned enterprise equitization fund and other legal sources) to supplement the charter capital for the fund, and propose the Prime Minister to decide.

Regarding the proposal of the Vietnam Cooperative Alliance on supplementing the Fund's working capital lending mechanism, Deputy Prime Minister Vuong Dinh Hue said it was not appropriate because lending working capital could easily lead to risks and loss of State capital if the fund did not have the capacity to manage and monitor the activities and cash flow of borrowers...

Deputy Prime Minister Vuong Dinh Hue requested the Fund to perform well the two tasks of credit guarantee and post-investment interest rate support in accordance with the spirit of Decree No. 193 of the Government; build a three-party credit guarantee process between cooperatives, banks and the Fund; and pay credit guarantee fees to enhance the operational responsibility of cooperatives participating in borrowing capital.

Along with amending the operations of the Central Cooperative Development Support Fund, the Government leader assigned the Ministry of Finance to preside over the guidance, inspection, supervision, and early development of regulations on the Cooperative Development Support Fund of localities.

In order to ensure convenience and consistency in the fund's operations, Deputy Prime Minister Vuong Dinh Hue also requested the Ministry of Finance to combine the two draft decisions into one decision of the Prime Minister.

According to Thanh Chung/chinhphu.vn