PEASANT ASSISTANCE FUND IS NOT ALLOW TO USE CAPITAL RESOURCES FOR DOING BUSINESS
On May 21, 2013, the Ministry of Finance issues the Circular No. 69/2013/TT-BTC dated May 21, 2013 of the Ministry of Finance guiding the financial management regime applicable to the Peasant Assistance Fund of Vietnam Peasants’ Association.
According to this Circular, the Peasant Assistance Fund shall operate not for the profit-making purpose, support and assist peasants in developing the rural production; has the legal entity, its own stamps, balance sheet, and is entitled to open the account at the State Treasury, domestic commercial banks in accordance with the Law; shall take self-responsibility for its operations before law, enjoy the financial autonomy, ensure the capital safety; make up the expenses and risks in the operation according to the Law and under this regulation. Besides, the management capital activities, the financial revenue and expenditure activities of the Peasant Assistance Fund shall be subject to the direction and management by the Executive Board of the Vietnam Peasants Association Central Committee at the same level and the Executive Board of the Vietnam Peasants Association Central Committee.
Additionally, the Peasants Association Fund is deducted for setting up the risk reserve to make up the loss due to the subjective causes arising during the process of lending to help the members of the Fund such as natural disasters (storm, flood, and drought), fire, and epidemic diseases and other causes. The reserve fund shall be at most equal to 0.9% of the debit balance by December 31 each year.
This Circular takes effect on July 15, 2013 and replaces the Circular No. 36/2002/TT-BTC.
