CIRCULAR

GUIDING THE LENDING WITHOUT ASSETS SECURITY IN ACCORDANCE WITH THE RESOLUTION NO. 02/2003/NQ-CP DATED 17 JANUARY, 2003 OF THE GOVERNMENT

Pursuant to point 13 Section III of the Resolution No. 02/2003/NQ-CP dated 17 January, 2003 of the Government on several essential policies and measures to concentrate in conducting the implementation of social-economic development task of the year 2003, The Governor of the State Bank provides the guidance for the implementation of the lending without assets security by credit institutions to borrowing customers as follows:

1. Credit institutions shall take the initiative of choosing, deciding and taking self-responsibility for the lending, which is not be obliged to apply assets security measures in accordance with provisions of the Decree No. 85/2002/ND-CP dated 25 October, 2002, Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government on loans security of credit institutions and the guidance of the State Bank of Vietnam.

2. For co-operatives, farmer's households, owners of farms which do not yet satisfy sufficient conditions for the consideration of lending without assets security by credit institutions in accordance with paragraph 18 Article 1 of the Decree No. 85/2002/ND-CP dated 25 October, 2002 of the Government, credit institutions are entitled to consider, decide and self-responsibility for the lending without assets security as follows:

a. For farmer's households, owners of farms engaging in the production of agriculture, forestry, aquaculture and salt area in the nature of goods productions, having feasible investment projects, production and business plan in schemed zones, which have been invested with infrastructure, entered into a contract of product consumption with enterprises, credit institutions shall consider and lend up to VND 30 millions without applying the assets security measure, but the borrowers are required to submit to credit institutions the certificate of the land use right or the written confirmation of people committees of villages, wards, towns proving that the land being used is not involved in any dispute.

b. For co-operatives engaging in the supply services of materials, plants, breeding animals for agriculture, forestry, aquaculture and salt production, which have feasible, effective production plan, a contract of product consumption, credit institutions shall consider and lend up to VND 100 millions without applying the assets security measure.

c. For co-operatives engaging in export goods production, traditional industry, which have feasible investment projects and production plan in accordance with social-economic development program, plan and the transfer of local economic structure, entered into the export contract or gained a feasible order, credit institutions shall consider and lend up to VND 500 millions without applying the assets security measure.

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a. This Circular shall be effective from the date of signing.

b. Provisions on the lending without assets security for farmer's households, owners of farms stipulated in point 4 Section I of the Circular No. 10/2000/TT-NHNN1 dated 31 August, 2000 of the Governor of the State Bank guiding the implementation of loans security measures of credit institutions in accordance with the Resolution No. 11/2000/NQ-CP dated 31 July, 2000 of the Government shall cease their effectiveness.

c. Heads of units of the State Bank; Managers of the State Bank branches in provinces, cities under the central Government's management, the Chairpersons of the Board of Directors, General Directors (Directors) of credit institutions shall be responsible for the implementation of this Circular.

FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Phung Khac Ke