On the morning of May 13, the National Assembly Standing Committee continued its 23rd meeting to give opinions on granting additional charter capital to the Bank for Agriculture and Rural Development (Agribank) by an additional VND 17,100 billion.

Presenting the Government's proposal, Deputy Governor of the State Bank Doan Thai Son said that the additional capital for Agribank will be taken from the 2023 central budget expenditure estimate approved by the National Assembly, over VND6,753 billion. The remaining amount of nearly VND10,347 billion will be allocated from the State budget and transferred in 2024.

The proposed additional capital of VND 17,100 billion corresponds to the remaining interest after setting aside funds for the expected period of 2021-2023 that Agribank will pay to the State budget.

According to the Deputy Governor, in the past 5 years, the growth rate of Agribank's charter capital has been lower than the growth rate of total assets, causing the minimum safety ratio to decrease and not reach the prescribed level.

Currently, Agribank's charter capital by the end of 2022 is 34,446 billion VND, the lowest in the group of State-owned commercial banks and there is no difference, lower than other commercial banks such as Techcombank (35,172 billion), MB (45,339 billion), VPBank (67,434 billion VND).

Therefore, the additional VND 17,100 billion will help Agribank ensure the minimum capital safety ratio (8%), expand credit, and meet capital needs in the agricultural and rural sectors.

Mr. Son warned that if Agribank is not allowed to increase its capital, it will not be able to ensure its leading role and orientation in the banking market, especially for banks operating mainly in the agricultural and rural sectors.

Chairman of the Economic Committee Vu Hong Thanh requested the Government to report and clarify the feasibility of the proposal in the context of the current economic and business difficulties. This will cause the budget collection, revenue and profit of Agribank to not reach expectations.

In addition, the Government needs to determine the specific source of the remaining budget allocation (VND 10,347 billion), the handling plan in case Agribank's budget payment in 2023 does not meet the expected level, as well as the ability to meet the capital safety ratio of 8%.

Previously, Agribank was approved by the National Assembly to add charter capital in 2020 with an amount equal to the after-tax profit paid to the budget in the year, up to 3,500 billion VND.

Need to explain more clearly the plan to increase charter capital

Concluding this content, Vice Chairman of the National Assembly Nguyen Duc Hai said that the National Assembly Standing Committee agreed to add to the 2023 law and ordinance program, and submit to the National Assembly to supplement charter capital for Agribank at the 5th session.

However, the National Assembly Standing Committee requested the Government to promptly complete the dossier for the National Assembly agencies to review. In particular, the Government needs to explain more clearly the plan to increase charter capital according to the requirements of Resolution 43, the feasibility of the additional capital, sources of additional capital and assess the impact on the State budget, the amount of after-tax profit in 2021 - the first quarter of 2023 already paid into the budget.

The Vice Chairman of the National Assembly assigned the Economic Committee to further examine the content of the Government's report. The contents submitted to the National Assembly for decision must clearly state the responsibilities of the Government and Agribank.

At the same time, the Government carefully assessed the impact on budget balance, revenue sources, and expenditure tasks to develop the 2024 budget estimate to submit to the National Assembly to allocate the remaining capital compared to the total capital decided by the National Assembly.

Consider reducing VAT on stocks and real estate

National Assembly Chairman Vuong Dinh Hue noted to consider expanding the 2% VAT reduction for banks, securities, and real estate because budget collection in 2023 is expected to be very difficult.

Not all officials and civil servants in Ho Chi Minh City have their income increased by 1.8 times.

National Assembly Chairman Vuong Dinh Hue noted that with the 1.8-fold increase in income, not all officials and civil servants in Ho Chi Minh City will be paid equally, but must depend on their contributions, dedication, and achievements.

Over 1,200 civil servants and public employees had their recruitment and appointment decisions revoked due to incorrect recruitment and appointment decisions.

The Minister of Finance said that from 2020 to June 2022, nearly 100,000 cases were reviewed and handled, including revoking recruitment decisions in over 1,200 cases of violations in the recruitment and appointment of civil servants and public employees.

Gold price today, May 13: Pressure from USD, gold price decreases Gold price today, May 13, on the world market decreased in the context of USD recovery and increasing US treasury bond yields.