Directive No. 01/2004/CT-NHNN on rectifying the handling of bank loans for coffee growers, caretakers, buyers, and processors at credit institutions

DIRECTIVE OF THE GOVERNOR OF THE STATE BANK

Regarding the rectification of bank loan debt handling for coffee growers, caretakers, purchasers, and processors at credit institutions

Implementing Decision No. 1127/QD-TTg dated August 27, 2001 of the Prime Minister on the handling of bank loan debts for coffee growers, caretakers, purchasers, and processors; the Governor of the State Bank of Vietnam issued Circular No. 10/2001/TT-NHNN dated October 19, 2001, and specific directives to direct state-owned commercial banks, joint-stock commercial banks, and people's credit funds to handle debts for coffee growers, caretakers, purchasers, and processors in accordance with the Prime Minister's instructions.

Generally, the handling of debts for coffee growers, caretakers, purchasers, and processors has been carried out promptly, ensuring legality and correct targets as directed by the Prime Minister. However, according to reports from some provinces, cities, and credit institutions, in some areas, debt handling has not been fully implemented as prescribed in Decision No. 1127/QD-TTg dated August 27, 2001 of the Prime Minister, Circular No. 10/2001/TT-NHNN dated October 19, 2001, and specific decisions of the Governor of the State Bank of Vietnam.

To strictly implement the Prime Minister's Decision, the Governor of the State Bank requests the Chairmen of the Board of Directors, General Managers (Directors) of state-owned commercial banks, joint-stock commercial banks, and people's credit funds (referred to as credit institutions) to implement the following contents:

1. Credit institutions that have been instructed by the Prime Minister and the Governor of the State Bank to handle debt write-offs for coffee growers, caretakers, purchasers, and processors must strictly comply with the relevant directives of the Prime Minister and the Governor of the State Bank regarding the handling of bank loan debts for coffee growers, caretakers, purchasers, and processors.

2. Credit institutions shall review the handling of debt write-offs for coffee growers, caretakers, purchasers, and processors to ensure that write-offs are made to the correct targets within the specified time frame. At the same time, they must closely monitor the amounts that have been written off.

When the write-off period expires, the written-off debts must be transferred to regular loans, and credit institutions must urge repayment in accordance with the lending regulations for customers issued pursuant to Decision No. 1627/2001/QD-NHNN dated December 31, 2001 of the Governor of the State Bank.

3. The State Bank of Vietnam Trading Center, State Bank of Vietnam branches in centrally governed cities and provinces which have provided loans to credit institutions to implement debt write-offs for coffee growers, caretakers, purchasers, and processors must monitor and urge credit institutions to repay the loans within the timeframes stipulated in the Governor's directives.

4. Heads of Departments, Bureaus, units at the State Bank of Vietnam, Directors of State Bank of Vietnam branches in centrally governed cities and provinces, Chairmen of the Board of Directors, General Managers (Directors) of related credit institutions are responsible for implementing this Directive seriously.

This Directive takes effect fifteen days after its publication in the Official Gazette.