Joint Circular No. 04/2004/TTLT/NHNN-BTP on guiding the establishment of the Valuation Board to handle loans for distant-sea fishing vessels to mitigate the consequences of Typhoon No. 5 in 1997.

JOINT CIRCULAR

Regarding guidance on establishing the Valuation Council to handle loans for distant-sea fishing vessel construction to mitigate the aftermath of Typhoon No. 5 in 1997

On the basis of Decisions No. 144/2002/QĐ-TTg dated October 24, 2002 and Decision No. 172/2002/QĐ-TTg dated November 28, 2002 of the Prime Minister regarding certain measures to handle loans for repairing, constructing new vessels, and purchasing fishing gear from preferential credit sources under Decision No. 985/TTg dated November 20, 1997 of the Prime Minister;

Implementing the directives of the Prime Minister in Circular No. 548/CP-NN dated May 5, 2003 of the Government and Circular No. 502/VPCP-NN dated February 4, 2004 of the Government Office regarding the establishment of the Valuation Council to handle loans for distant-sea fishing vessel construction to mitigate Typhoon No. 5 in 1997;

Based on the actual situation regarding the handling of loans to mitigate the aftermath of Typhoon No. 5 in 1997 in localities;

The National Bank of Vietnam and the Ministry of Justice jointly issue guidance on establishing the Valuation Council to handle loans for distant-sea fishing vessel construction to mitigate the aftermath of Typhoon No. 5 in 1997 as follows:

1. Scope and Objectives

The establishment of the Valuation Council to handle loans for distant-sea fishing vessel construction to mitigate the aftermath of Typhoon No. 5 in 1997 (hereinafter referred to as the Valuation Council) shall apply to the following cases:

1.1. For localities that do not have a Property Auction Service Center or a professional auction enterprise as stipulated in the Auction Regulations issued pursuant to Decree No. 86/CP dated December 19, 1996 of the Government (hereinafter referred to as a professional auction organization): Establish the Valuation Council to handle loans for distant-sea fishing vessel construction to mitigate the aftermath of Typhoon No. 5 in 1997 (hereinafter referred to as the Valuation Council) to appraise and auction assets.

1.2. For localities that have professional auction organizations but during the implementation of the directives of the Prime Minister in Decisions No. 144/2002/QĐ-TTg dated October 24, 2002 and No. 172/2002/QĐ-TTg dated November 28, 2002, Circular No. 548/CP-NN dated May 5, 2003 of the Government, and the guidance of the Governor of the National Bank at Circular No. 02/2003/TT-NHNN dated February 11, 2003 and Circular No. 547/NHNN-TD dated May 28, 2003, difficulties arise when borrowers must transfer ownership of vessels to repay debts through public asset auctions but between the commercial bank branches lending and the borrowers cannot agree on the starting price to put the assets up for auction, and the commercial bank branch in the province/city requests the Chairman of the People's Committee of the province/city to establish the Valuation Council to appraise assets: Establish the Valuation Council to appraise assets and hand over assets to the professional auction organization to conduct the auction.

The valuation process conducted by the Valuation Council established in both cases specified in points 1.1 and 1.2 above must follow a uniform procedure and process as prescribed by the Chairman of the Council in accordance with the law.

2. Composition of the Valuation Council

- Deputy Chairman of the People's Committee of the province/city - Chairman of the Council,

- Representative of the leadership of the National Bank of Vietnam branch in the province/city directly under the central government - Vice Chairman in charge;

- Representative of the Department of Justice - Vice Chairman of the Council;

- Representative of the Provincial Department of Finance and Prices - Member of the Council;

- Representative of the Department of Fisheries - Member of the Council;

- Representative of the Department of Agriculture and Rural Development - Member of the Council;

- Representative of the Fishery Resources Protection Agency - Member of the Council

3. Rules of organization and operation of the Valuation Council

The Council operates according to the Rules issued by the Chairman of the Council based on the principle:

- For localities without professional auction organizations, the Valuation Council conducts auctions according to the Auction Regulations issued together with Decree No. 86/CP dated December 19, 1996 of the Government; In case the commercial bank branches lending and the borrowers cannot agree on the starting price to put the assets up for auction, the Valuation Council determines the starting price based on the market price at the time of appraisal;

- For localities with professional auction organizations, the task of the Council is to determine the starting price based on the market price at the time of appraisal to transfer it to the professional auction organization to conduct the auction according to the Auction Regulations issued together with Decree No. 86/CP dated December 19, 1996 of the Government.

- Commercial bank branches lending and owners of vessels subject to loan security guarantees are invited by the Valuation Council to attend meetings and express opinions when the Council meets to appraise to ensure objectivity and protect the interests of all parties related to the loan.

- The Chairman of the Council specifies the operating budget of the Council in accordance with the current expenditure regulations of the Ministry of Finance and the laws on fees and charges.

The Council terminates its operations after completing the sale of vessels through auctions to recover loans.

This Circular takes effect 15 days after its publication in the Official Gazette.

5. Implementation

5.1. Chairmen of the People's Committees of the provinces/cities: Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Binh Thuan, Ba Ria-Vung Tau, Ho Chi Minh City, Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau, and Kien Giang shall issue decisions to establish the Valuation Council along with its operational rules.

5.2. Auctions need to be promptly carried out immediately after the vessels have been appraised.

Any difficulties encountered during implementation should be reported to the National Bank of Vietnam for consolidation and reporting to the relevant ministries for resolution./.