Joint Circular No. 03/1996/TTLT/BLDTBXH-BTC-BKHDT of the Ministry of Labor, War Invalids and Social Affairs, Ministry of Finance, and Ministry of Planning and Investment guiding supplementary and amended policies on loans for small projects to create jobs pursuant to Resolution No. 120/HDBT dated April 11, 1992 of the Council of Ministers (now the Government).

JOINT CIRCULAR

of the Ministry of Labour - War Invalids and Social Affairs, Ministry of Finance, and the Ministry of Planning and Investment No. 03/1996/TTLT/MLDTBXH-MF-MPI JOINT CIRCULAR dated February 3, 1996 guiding supplementary and amended policies on loans for small projects to create jobs pursuant to Resolution No. 120/HDBT dated April 11, 1992 of the Council of Ministers (now the Government)

--------------------------------

Implementing Resolution No. 120/HDBT dated April 11, 1992 of the Council of Ministers (now the Government) on policy directions and measures to solve employment issues in the coming years; the Joint Ministries of Labour - War Invalids and Social Affairs, Finance, and the State Planning Commission (now the Ministry of Planning and Investment) issued Joint Circulars No. 10/TT-LB dated April 1, 1994; No. 03/TT-LB dated February 10, 1995 and Circular No. 30/LDTBXH-TT dated November 11, 1995 guiding policies on loans for small projects to create jobs.

Up to now, some provisions of the above-mentioned Circulars are no longer appropriate, and implementing Decree No. 72/CP dated October 31, 1995 of the Government detailing and guiding implementation of certain articles of the Labour Code, the Joint Ministries of Labour - War Invalids and Social Affairs, Finance, and Planning and Investment guide supplementary and amended provisions as follows:

1. Borrowers

- Individuals and households borrowing capital to develop production and self-create jobs, including households of workers and civil servants who have been unemployed for a long time, and households of military personnel residing stably in military villages;

- Members of mass organizations;

- Production establishments, small-scale industrial cooperatives, construction, and transportation enterprises attracting additional labour, especially those accepting jobless workers;

- Production establishments of war invalids, disabled persons; volunteer youth; production establishments combining treatment and education for social delinquents.

Among borrowers, priority should be given to households and production establishment heads under policy support, and production establishments attracting many policy-supported workers. When these entities need to borrow capital, they must prepare project plans according to the guidelines set out in Document No. 1979/LDTBXH dated July 11, 1992 of the Ministry of Labour - War Invalids and Social Affairs.

2. Loan interest rates

From March 1, 1996, interest rates for loans from the National Fund for Employment through small projects shall be stipulated as follows:

a. For approved loan projects with different terms, a unified interest rate of 0.9% per month applies. Interest is paid once based on the amount borrowed and the actual borrowing period; interest is not compounded into the principal; principal and interest are repaid upon maturity.

Loans made before March 1, 1996 shall apply the interest rate prescribed in Decision No. 364 TC/CĐTC dated June 18, 1993 of the Minister of Finance.

b. Overdue interest rates are set at 200% of the basic interest rate mentioned above.

Project leaders and borrowers, in addition to interest and principal, do not have to pay any other fees.

3. Management and operational expenses

A portion of management and operational expenses, compensating for costs serving loans of the Treasury system, provincial steering committees, district, county, project area leaders, mass organizations, central organization mass organizations, and central guidance agencies is deducted from the interest received.

The Ministry of Finance will issue detailed regulations after reaching consensus with the Ministry of Planning and Investment and the Ministry of Labour - War Invalids and Social Affairs.

4. Loan term

Three loan terms are specified: 12 months, 24 months, and 36 months. The loan term depends on the purpose of using capital, industry characteristics, and the growth cycle of each type of crop or animal. (Appendix attached).

Projects that perform well and have a need for further loans may be considered for a second round of loans or extension of the loan term for projects with longer production cycles than the originally granted term. Procedures and conditions for a second round of loans or term extension follow the provisions of the Joint Circular (Labour - War Invalids and Social Affairs, Finance, State Planning Commission) No. 12/TT-LB dated April 1, 1994.

5. Implementation Organization

- Provincial State Treasuries implement lending and recovery of capital according to the lending decisions of the People's Committees of provinces or heads of central mass organizations, without arbitrarily extending loan terms.

- Monthly and quarterly, provincial treasuries report promptly on lending situations (according to the guidelines of the Central State Treasury) to the provincial steering committees and the Central State Treasury. On this basis, the Central Treasury compiles and reports to the Joint Ministries (according to Appendix No. 2, 3).

- At the end of each quarter and year, provincial people's committees and heads of central mass organizations report in detail on lending situations to create jobs to the Joint Ministries (according to Appendix No. 4 attached to this Circular).

This Circular takes effect from the date of issuance and replaces corresponding points in previous Joint Circulars that are no longer appropriate. During implementation, if there are difficulties, localities, sectors, and mass organizations are requested to reflect them to the Joint Ministries of Labour - War Invalids and Social Affairs, Finance, and Planning and Investment for study and resolution./.