JOINT CIRCULAR No. 02/1996/TTLT/BTC-BLDTBXH-BKHĐT OF THE MINISTRIES OF LABOR - SOCIAL WELFARE AND VETERANS AFFAIRS - FINANCE - PLANNING AND INVESTMENT GUIDING THE DELEGATION OF MANAGEMENT OF LOAN FUNDS UNDER THE HUMANITARIAN ASSISTANCE PROGRAM OF THE CZECH AND SLOVAK FEDERAL REPUBLIC (BEFORE SPLITTING INTO TWO STATES)

JOINT CIRCULAR

of the Ministry of Labour - Invalids and Social Affairs - Finance - Planning and Investment No. 02/1996/TTLT/BTC-BLDTBXH-BKHĐT dated February 2, 1996 guiding the delegation of management authority over loans under the humanitarian aid program of the Government of the Czech Republic and Slovakia (former)

Pursuant to Circular Joint No. 03/TT-LB dated March 18, 1993 and Circular Joint No. 02/TT-LB dated February 10, 1995 of the Ministry of Labour - Invalids and Social Affairs - Ministry of Finance - State Planning Commission guiding the implementation of the Humanitarian Aid Program of the Government of the Federal Republic of Czechoslovakia (former) to support job creation and vocational training for Vietnamese workers returning ahead of schedule.

To decentralize responsibility, create autonomy for localities in managing, directing, and operating loan projects under the humanitarian aid program of the Government of the Federal Republic of Czechoslovakia (former) within their jurisdictions to ensure proper use of funds according to objectives and target groups, and to unify the management and supervision of loan funds; the Joint Ministries of Labour - Invalids and Social Affairs - Finance - Planning and Investment hereby guide the delegation of management authority over loan funds from the humanitarian aid program of the Government of the Federal Republic of Czechoslovakia (former) as follows:

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

The loan funds for job creation from the Humanitarian Aid Program of the Government of the Federal Republic of Czechoslovakia (former) are centrally managed and directed at the central level.

The Joint Ministries delegate management authority over loan funds to the People's Committees of Provinces and Cities directly under the Central Government for projects where the project owners are enterprises established and licensed to operate by the locality.

Loan projects under the management of Ministries and sectors continue to be implemented in accordance with previous guidelines.

II. SPECIFIC PROVISIONS

1. Allocation of credit limits and delegation of management authority over loan funds

Annually, on a quarterly basis, based on the ability to recover capital from projects due for repayment under the Program, and the demand for loan funds from eligible entities in each locality, the People's Committee of the Province or City shall guide relevant sectors within their jurisdiction to prepare plans for recovery and lending, which shall be submitted to the Joint Ministries. On this basis, the Ministry of Labour - Invalids and Social Affairs will coordinate with the Ministry of Finance, the Ministry of Planning and Investment to balance and announce credit limits for each Province and City directly under the Central Government for the People's Committee of the Province or City to use as a basis for reviewing and issuing lending decisions for projects eligible for loan funds as stipulated in Point 1, Section I of Circular Joint No. 02/TT-LB dated February 10, 1995.

Within the announced credit limit, the Chairman of the People's Committee of the Province or City directly under the Central Government shall organize reviews and issue approval decisions for projects, which shall be sent together with a summary table of approved projects in the locality to the Joint Ministries for reallocation of loan funds according to prescribed procedures. If a Province has not issued an approval decision for lending projects or has not exhausted the credit limit within three months from the date of announcement of the credit limit, the unused funds will be reallocated to other localities.

2. Construction of loan projects

- Follow the guidance document No. 1979/LDTBXH dated July 11, 1992; Circular No. 962/VL dated April 3, 1993 of the Ministry of Labour - Invalids and Social Affairs.

- Approved project files must be kept at the Department of Labour - Invalids and Social Affairs and the local State Treasury, ensuring the following procedures are complete:

+ The project must have confirmation from the local government where the project owner resides. (For state-owned enterprises, the project must have confirmation from the State Capital and Asset Management Bureau at the enterprise).

+ Confirmation from the Department of Labour - Invalids and Social Affairs regarding the project's ability to attract labor; from the State Treasury of the Province or City regarding the feasibility of the project's collateral and its ability to repay principal and interest.

+ Must have business registration certificates, establishment permits, and return-to-work documents of the project owner (certified by the Vietnam Labour Management Board in Czechoslovakia (former) or a transfer decision from the International Cooperation Department).

+ All related permits and certificates in the project file must be originals or certified copies.

- The Department of Labour - Invalids and Social Affairs shall cooperate with the State Treasury to review and assess projects presented for approval by the People's Committee of the Province or City, and issue lending decisions.

- For projects that have received loans and are due for repayment, if there is a genuine need, they may be re-loaned subject to the following conditions:

+ The project owner has used the loan funds for the approved purpose, has attracted the required number of workers as planned;

+ Production and business operations are effective, maintaining the previous number of workers and attracting at least 50% more new workers than before;

+ Re-lending projects shall be carried out in accordance with Clause 1, Section I of Circular Joint No. 02/TT-LB dated February 10, 1995. For re-lending projects, the People's Committee of the Province or City shall send the Decision and a separate summary table to the Joint Ministries for monitoring and management.

3. Interest rates for loans, management fees, and costs for lending and recovery

Interest rates for loans, management fees, costs for lending, and recovery shall be applied according to current guidance documents for small projects funded from the National Fund for Employment Resolution pursuant to Resolution No. 120/HĐBT dated April 11, 1992 of the Council of Ministers (now the Government).

4. Process for transferring loan funds

After receiving the People's Committee of the Province or City's Decision approving the project along with a summary table of approved projects, based on the progress of capital recovery, the Ministry of Labour - Invalids and Social Affairs will examine and verify the eligibility, purpose of fund usage, labor absorption targets, loan period, and amount to issue a letter requesting the Ministry of Finance and the Central State Treasury to allocate funds according to the approved projects.

Pursuant to the request letter of the Ministry of Labor, Invalids and Social Affairs, if it is new capital, the Ministry of Finance shall transfer the capital for the State Treasury to proceed with lending. If it is recovered capital, the Central State Treasury shall reallocate it to the State Treasury where the project is located for lending. The lending shall be carried out by the local State Treasury and the Department of Labor, Invalids and Social Affairs in accordance with the progress of using funds for their intended purpose and attracting labor as committed by the project owner. Within a maximum of two months from the date when there is a balance in the loan fund account (Czechoslovak aid fund - Account No. 873.01), the local State Treasury must release the funds according to regulations.

The Central State Treasury shall provide guidance on the relevant provisions above for implementation.

5. Recovery of Loan Capital

- Projects must repay the full principal and interest to the State Treasury system upon maturity.

- Quarterly, the Central State Treasury has the responsibility to report to the Joint Board on the recovery plan and the amount of capital recovered for the basis of allocating capital.

6. Handling Projects That Cannot Be Implemented

In principle, approved projects must be implemented in accordance with their effective objectives. For projects that cannot be implemented, they will be handled as follows:

- For projects that cannot be implemented due to objective reasons, if the project owner wishes to adjust the project content to suit actual conditions, they must redevelop the project. Relevant agencies will review and appraise the substitute project, which will then be submitted to the People's Committee of the Province/City for consideration and decision on changing the project. Within three months, if there is no adjusted project, the People's Committee of the Province/City will issue a decision to recover the capital and report to the Joint Board.

- For projects that use loan capital for purposes other than those intended, are ineffective, have low efficiency, fail to attract the required number of workers as committed in the project, or lack the necessary conditions to ensure repayment of capital and interest to the state, the State Treasury will coordinate with the Department of Labor, Invalids and Social Affairs to compile and submit a proposal to the People's Committee of the Province/City to suspend lending and recover the capital ahead of schedule for the project.

7. Supervision and Inspection of Project Implementation

The People's Committee of the Province/City shall direct competent agencies: the Department of Labor, Invalids and Social Affairs and the State Treasury where the project is located to periodically inspect the use of capital and labor in approved projects. Any violations should be promptly corrected and dealt with, ensuring that projects are implemented in accordance with their intended purpose, target group, and effectiveness. At the same time, reports should be sent to the Joint Board. The Ministry of Labor, Invalids and Social Affairs shall cooperate with relevant ministries and agencies to conduct regular and spot inspections to serve management of the Program.

III. IMPLEMENTATION

1. Based on the Circular guiding the Joint Board and accompanying documents, ministries, sectors, and localities shall instruct competent agencies to implement the Program quickly, effectively, in line with its objectives and target groups.

2. The Ministry of Labor, Invalids and Social Affairs shall inspect the implementation of the Program, compile results, report to the Joint Board, and inform the Czech Republic and Slovakia (former).

3. This Circular takes effect from the date of issuance and replaces relevant points in Circular No. 03/TT-LB dated March 18, 1993 and Circular No. 02/TT-LB dated February 10, 1995 of the Joint Board. During implementation, any issues encountered should be reported promptly to the Joint Board for resolution.