Amendment and supplement to Resolution No. 140/2015/NQ-HDND
dated July 11, 2015 approving the scheme on establishment of Credit Guarantee
Fund for small and medium-sized enterprises in Lam Dong province
Article 1. To amend and supplement a number of
contents of Resolution 140.2015/NQ-HDND dated July 11, 2015 approving the
scheme on establishment of Credit Guarantee Fund for small and
medium-sized enterprises in Lam Dong province
1. Clause 1, Article 1 is amended and supplemented
"1. Credit Guarantee Fund for small and medium-sized
enterprises in Lam Dong province (hereinafter called the Fund for short) is
a non-budget state financial fund established by the provincial People's
Committee, operating without a profit profit, preserve and develop capital;
perform the function of providing credit guarantees for small and
medium-sized enterprises in accordance with the Government's Decree No. 34 /
ND-CP of March 8, 2018 on establishing , organization and operation of the
credit guarantee fund for small and medium-sized enterprises (hereinafter
referred to as Decree No. 34/2018 / ND-CP) and related laws. single member
limited liability company with 100% state owned charter capital.
The Fund has legal status, charter capital, separate
financial statements, seals, is allowed to open accounts at the State
Treasury and credit institutions legally operating in Lam Dong province.
The Fund earns income from activities due to the
performance of credit guaranteeing tasks as prescribed in Decree No. 34 /
ND-CP of March 8, 2018 on establishing , organization and operation of the
credit guarantee fund for small and medium-sized enterprises. In cases where
the Fund has income from activities other than credit guarantee activities,
it must pay tax according to the tax law."
2. Clause 4, Article 1 is amended and supplemented
“4. The Fund's capital is formed from the following
- Charter capital provided by the provincial budget:
VND 100 billion;
- Additional capital from the Fund's operating
results as prescribed;
- Capital formed from grants, aids and
non-refundable contributions of domestic and foreign organizations and
individuals to the Fund;
- Other state capital as prescribed by law;
- Other capital sources of equity as prescribed by
b) Capital mobilized: Capital mobilized from
financial and credit institutions at home and abroad according to the
provisions of law and internal regulations of the Fund must ensure its
compatibility with the Fund's solvency.
b) Other capital amounts include:
- Capital entrusted by local administrations, local
financial funds, domestic and foreign organizations and individuals
(mandators) to fulfill the mandate requirements according to law provisions,
and Decree No. 34 / ND-CP of March 8, 2018.
- Other lawful capital sources as prescribed by
3. Clause 5, Article 1 is amended and supplemented
“5. Subjects to be granted credit guarantee:
a) Subjects granted by the Credit Guarantee Fund are
small and medium-sized enterprises under the provisions of the Law on
Support for Small and Medium-sized Enterprises and guiding documents, which
have development potential but have not yet qualified to access credit. use
the bank in the areas of credit priority as prescribed in Decree No. 34 /
ND-CP of March 8, 2018.
b) Small and medium-sized enterprises that borrow
capital for investment, production and business in the following fields will
be given priority to consider granting credit guarantees:
- Fields of priority given credit under the guidance
of the State Bank of Vietnam in each period;
- Fields or projects in the local socio-economic
development priority domains promulgated by the provincial People's
Committees in each period. "
4. Clause 6, Article 1 is amended and supplemented
"6. Conditions for a credit guarantee:
Subjects entitled to credit guarantee prescribed in
Clause 5 of this Article shall be considered and granted by the Fund to
fully meet the following conditions:
a) Having an effective investment project,
production and business plan that is capable of repaying the loan.
b) Investment projects, production and business
plans appraised by the Fund and guaranteed under the provisions of
c) There is a plan on equity of at least 20%
participating in investment projects, production and business plans at the
time of appraisal of the Fund for consideration of guarantee.
d) At the time of applying for guarantee, the
enterprise does not have tax debts of 1 year or more under the Law on Tax
Administration and bad debts at credit institutions. In case of tax
liability due to objective reasons, enterprises must obtain certification of
the direct tax administration agency.
e) Measures are taken to ensure loan guarantees:
- Property rights, existing assets or future assets
belonging to the enterprise's ownership are considered for credit guarantee
or existing third party's assets;
- Feasible investment projects, feasible production
and business plans, ensuring the enterprise's solvency, shall be considered
for credit guarantee according to the Fund's assessment;
- Credit rating of an enterprise shall be considered
for granting a credit guarantee according to the Fund's assessment that it
is an enterprise that ensures its solvency for a loan at the lending
4. Clause 7, Article 1 is amended and supplemented
"7. Scope of credit guarantee
a) The fund considers granting credit guarantee to
small and medium-sized enterprises up to 100% of the loan value (including
working capital and medium, long-term capital) at the lending organization.
Based on the feasibility, risk level of the enterprise, investment project,
production and business plan and financial capacity of the Fund, the Fund
shall consider and decide on the guarantee level for the enterprise.
b) Guarantee of the Fund includes one of the
- Guarantee of debt repayment obligations of the
guaranteed party at the lending organization;
- Guarantee of loan interest payment obligations of
the guaranteed party at the lending organizations;
- Guarantee for repayment of loan principal and
interest of the guaranteed party at the lending institution and must be
specified in the credit guarantee contract.
e) Based on the Fund's financial capability,
management and operation, feasibility and risk level of investment projects,
production and business plans, the Fund shall consider and decide on the
scope of credit guarantee prescribed specified at Point b, Clause 7 of this
Article and specified in credit guarantee contracts, "
4. Clause 8, Article 1 is amended and supplemented
8. Credit guarantee limits:
a) Limit on investment loan guarantee: The Fund's
total credit guarantee is based on the Fund's actual charter capital but
does not exceed 15% for a customer and no more than 20% for a customer and
b) Working capital guarantee limits: In addition to
the provisions on loan guarantee limits at Point a, Clause 8 of this
Article, the Fund's working capital guarantee limit must not exceed the
owner's equity. The line of sales represents the main report of the
enterprise that is submitted to the tax administration in the previous year
and the following year.
c) The Fund's total credit guarantee to the
guaranteed parties specified at Points a and b, Clause 8 of this Article
must not exceed 3 times the Fund's actual charter capital."
11. Clause 11 Article 1 is amended and supplemented
"11. The organizational structure, operation scope
and scope of the Fund include:
a) Chairman of the Fund.
c) Executive board.
The provincial People's Committee shall decide the
force of organization and operation of the Fund in accordance with the
actual situation in the locality, ensuring efficiency and approving the
Fund's Organization and Operation Regulation according to regulations. "
Article 2. Organization of implementation
1. Assigning the provincial People's Committee to
organize the implementation of this Resolution; in which, allocate the
provincial budget to provide additional charter capital to the Fund within
the time limit specified in Clause 4, Article 64 in Decree No. 34 / ND-CP of
March 8, 2018.
2. The Standing Committee of the provincial People's
Council, the Committees of the provincial People's Council, the Delegate
Groups of the provincial People's Council and the provincial People's
Council delegates supervise the implementation of the Resolution in
accordance with law.
This Resolution is adopted by Lam Dong People's
Council Session XI, the 8th session on July 10, 2019 and takes effect after
July 20, 2019./.