Decision No. 08/2021/QD-TTg Amending and Supplementing Certain Articles of the Regulation on Handling Risky Debts at the Social Policy Bank issued together with Decision No. 50/2010/QD-TTg dated July 28, 2010 of the Government Prime Minister.

Pursuant to …;
Amending and supplementing certain provisions of the Regulation on handling risky debts at the Vietnam Bank for Social Policies issued together with Decision No. 50/2010/QĐ-TTg dated July 28, 2010 of the Prime Minister

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.Replacing the phrase "at the Vietnam Bank for Social Policies issued together with Decision" from the original text.

Decision No. 50/2010/QĐ-TTg dated July 28, 2010 of the Prime Minister

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy targets;

At the proposal of the Minister of Finance;

The Prime Minister issues this Decision amending and supplementing certain provisions of the Regulation on handling risky debts at the Vietnam Bank for Social Policies issued together with Decision No. 50/2010/QĐ-TTg dated July 28, 2010 of the Prime Minister.

Article 1. Amending and supplementing certain provisions of the Regulation on handling risky debts at the Vietnam Bank for Social Policies issued together with Decision No. 50/2010/QĐ-TTg dated July 28, 2010 of the Prime Minister:

1. Clause 4 shall be amended and supplemented as follows:

"Article 4. Time for considering and handling risky debts and reporting results of handling risky debts

1. Considering and handling risky debts due to objective reasons shall be carried out at the actual time when the risk occurs or in batches based on the customer's proposal or the Vietnam Bank for Social Policies' proposal. The maximum time limit for considering and handling risky debts in batches is 30 working days from the date of receiving complete files as prescribed.

2. Every six months or upon urgent request, the Vietnam Bank for Social Policies shall prepare reports on the results of handling risky debts according to Model No. 01 and Model No. 02 attached to this Decision in the form of paper documents sent via postal service or electronic documents for the Ministry of Finance, the Ministry of Planning and Investment, and the State Bank of Vietnam for monitoring. The contents of the reports prepared by the Vietnam Bank for Social Policies shall be detailed according to each debt handling measure by province and centrally-administered city and by each credit program.

3. The period for finalizing data for the first half-year report is from January 1 of the reporting year to June 30 of the same year. The period for finalizing data for the second half-year report is from July 1 of the reporting year to December 31 of the same year.

4. The deadline for submitting reports by the Vietnam Bank for Social Policies is as follows:

a) For the first half-year report: no later than July 30 of the reporting year.

b) For the second half-year report: no later than January 30 of the following year after the reporting year."

a) A customs declaration form for imported goods according to the information criteria specified in Model No. 01 - Declaration Form for Imported Goods attached as Appendix I to Circular No. 39/2018/TT-BTC dated April 20, 2018, issued by the Minister of Finance.

"Article 5. Provisions on objective reasons

1. Natural disasters as defined by laws on disaster prevention and control; epidemics, fires; diseases related to livestock and crops that cause damage to capital and assets of projects or borrowing plans from the Vietnam Bank for Social Policies.

2. Changes in state policies affecting the production and business activities of customers: no longer having sources of raw materials; products produced or traded being banned or restricted under laws; customers must implement production and business conversion according to decisions of competent state agencies.

3. Political, economic, and social changes, epidemics in countries receiving Vietnamese laborers affecting overseas workers; enterprises accepting laborers going bankrupt or being dissolved; enterprises accepting laborers unilaterally terminating labor contracts with workers due to the workers' lack of health or skills or due to other objective reasons not attributable to the workers leading to the workers returning home before their term.

4. Borrowers who are individuals or have other members in their households (related by marriage, blood, adoption as stipulated by laws on marriage and family, living together at the time the borrower requests risk resolution): suffering from mental illness; suffering from serious illnesses; suffering from other illnesses leading to loss of civil capacity; having difficulties in understanding and controlling behavior; requiring long-term treatment according to regulations of the Ministry of Health; permanently losing work capacity by 81% or more; death or declared dead; declared missing; absent from residence and without verifiable information about whereabouts for two consecutive years or more, counted from the last known information about the borrower.

5. Debts recoverable according to court judgments or decisions but the judgment debtor has not yet had the conditions to execute the judgment according to notifications from enforcement agencies; debts occupied by persons who have died, disappeared, and have no remaining assets to repay; borrowers declared bankrupt or dissolved according to laws."

3. Point b, point c Clause 1 Article 6 shall be amended as follows:

"b) Conditions for extending debt repayment

Customers may be considered for extended debt repayment when affected by risks due to one of the reasons specified in Clause 1 and Clause 2 of Article 5 of this Regulation, with losses of capital and assets below 40% of the total project capital or borrowing plan.

c) Duration of extended debt repayment: The total duration of extended debt repayment includes extensions under Clause 2 of Article 17 of Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy targets, Clause 2 of Article 14 of Decision No. 16/2003/QĐ-TTg dated January 22, 2003 of the Prime Minister on the Charter of Organization and Operation of the Vietnam Bank for Social Policies, and extensions under this Regulation, with a maximum of 12 months for short-term loans; not exceeding half the loan term for medium and long-term loans (calculated from the initial loan term when signing the loan agreement), except where the Prime Minister has special provisions (if any)."

4. Point b Clause 2 Article 6 shall be amended as follows:

"b) Conditions and duration of debt write-off:

Customers facing difficult circumstances, unable to repay debts on schedule, and falling into one of the following situations may be considered for debt write-off with a maximum write-off period of three years from the date of the competent authority's decision to write off the debt:

Customers facing risks as specified in Clause 1 and Clause 2 of Article 5 of this Regulation suffer capital and asset losses from 40% to less than 80% compared to the total actual capital implemented for the project or production and business plan financed by the loan.

Customers facing risks due to one of the causes specified in Clause 3 and Clause 4 of Article 5 of this Regulation (excluding cases of absence from the place of residence and lack of verifiable information about whereabouts for two consecutive years and cases eligible for debt write-off as provided for in Point b of Clause 3 of Article 6 of this Regulation).

Customers who faced risks before 2014 due to objective causes specified in Clause 1 and Clause 2 of Article 5 of this Regulation, but failed to timely address such risks, thus unable to determine the extent of loss.

Debts that must be recovered according to court judgments and decisions, but the debtor has not yet had the conditions to execute them.

Customers with difficult circumstances, unable to repay debts on time and falling under one of the following situations shall be considered for debt moratorium with a maximum moratorium period of five years from the date of the competent authority's decision to implement the moratorium:

Customers facing risks as specified in Clause 1 and Clause 2 of Article 5 of this Regulation suffer capital and asset losses from 80% to 100% compared to the total actual capital implemented for the project or production and business plan financed by the loan.

All members participating in signing the loan contract are absent from their place of residence and there is no verifiable information about their whereabouts for two consecutive years.

In case the moratorium period expires and customers still face difficulties and are unable to repay debts, they will be considered for additional moratorium with a maximum duration not exceeding the previous moratorium period according to the competent authority's decision.

5. Point 6 of Clause 3 of Article 6 is amended as follows:

"6) Conditions for debt write-off:"

All members participating in signing the loan contract are unable to repay debts and fall under one of the following situations shall be considered for debt write-off (principal and interest):

After the moratorium period expires (including cases of additional moratoriums as stipulated in Point b of Clause 2 of Article 6 of this Regulation), customers are still unable to repay debts and the Social Policy Bank has applied all recovery measures but failed to recover the debt.

All members participating in signing the loan contract are at risk due to one of the causes specified in Clause 4 of Article 5 of this Regulation (excluding the cause of long-term illness requiring treatment as prescribed by the Ministry of Health or absence from the place of residence and lack of verifiable information about whereabouts for two consecutive years).

Customers who have been declared bankrupt or dissolved according to the provisions of the law.

Debts transferred from the Agricultural Development Bank, Industrial and Commercial Bank of Vietnam, and State Treasury which the Social Policy Bank has applied all recovery measures but failed to recover; debts occupied where the occupier has died, disappeared, and has no assets to repay the debt.

6. Add Article 7a before Article 7 as follows:

"Article 7a. Record of Request for Risk Debt Handling

1. When customers encounter risks due to objective reasons as stipulated in this Regulation, the Social Policy Bank shall take the lead and coordinate with relevant organizations and individuals to conduct audits and prepare records of requests for handling risk debts. The main contents of the record of request for handling risk debts include:

a) Reasons for requesting risk debt handling;

b) Degree of capital and asset loss. In cases where customers are considered for debt moratorium based on the reasons specified in Clause 3 and Clause 4 of Article 5 of this Regulation and individual customers who faced risks before 2014 due to objective reasons specified in Clause 1 and Clause 2 of Article 5 of this Regulation but did not promptly handle such risks, it is unnecessary to determine the degree of capital and asset loss;

c) Evaluation of the customer's ability to repay debts;

d) Proposed handling measures. In cases requesting consideration for debt write-off, the Social Policy Bank must confirm that all recovery measures have been applied but failed to recover the debt, and all members participating in signing the loan contract are unable to repay debts.

2. Regarding confirmation of the request for handling risk debts:

a) The People's Committee of the commune where the customer resides is responsible for confirming:

Objective reasons recorded in the request for handling risk debts for cases specified in Clause 1 and Clause 2 (for individual loan customers).

Individual loan customers who faced risks before 2014 but did not promptly handle such risks, have difficult circumstances, and are unable to repay debts.

Marital, bloodline, and foster relationships according to the laws on marriage and family of household members living together at the time the customer requests risk handling.

All members participating in signing the loan contract are unable to repay debts after the moratorium period expires (including additional moratoriums);

b) The commune police are responsible for confirming cases where all members participating in signing the loan contract are absent from their place of residence and there is no verifiable information about their whereabouts for two consecutive years.

3. The degree of capital and asset loss of customers for applying debt handling measures is determined by the amount of capital and assets of the project or loan plan actually lost due to objective reasons compared to the total capital (including both loans from the Social Policy Bank and other capital) to implement the project or loan plan.

4. The record of request for handling risk debts must be confirmed by the leader of the Social Policy Bank providing the loan; the Group Leader of the Savings and Loan Group for cases of loans through savings and loan groups; the leader of political social organizations entrusted with lending for cases of loans through political social organizations; the commune police for cases where all members participating in signing the loan contract are absent from their place of residence and there is no verifiable information about their whereabouts for two consecutive years; the People's Committee of the commune where the customer resides.

5. The Social Policy Bank shall issue a model record of request for handling risk debts for uniform application throughout the system.

1. Procedures for depositing money into the State Budget shall be carried out in accordance with Article 4 of Decree No. 11/2020/NĐ-CP and Article 13 of Decree No. 45/2020/NĐ-CP dated April 8, 2020 of the Government on implementing administrative procedures in an electronic environment.

"Article 7. Legal documents for handling risky debts

1. For debt extension:

a) The original customer's request for debt extension including the following main contents: cause of damage; extent of damage to capital and assets; ability to repay; repayment plan; outstanding principal and interest owed to the Social Policy Bank; amount requested for extension and time period requested for extension;

b) A copy of the loan receipt with a certified true copy from the Social Policy Bank that issued the loan;

c) The original minutes proposing the handling of risky debts;

d) In cases where the customer is an economic organization, in addition to the documents mentioned in points a, b, and c of Clause 1 of this Article, the following documents must be supplemented:

The original or certified copy of the financial report of the economic organization for the two most recent years;

The original recovery plan for production and business operations of the economic organization.

2. For debt write-off:

a) The original customer's request for debt write-off including the following main contents: cause of damage; extent of damage to capital and assets; ability to repay; outstanding principal and interest owed to the Social Policy Bank; amount requested for write-off and time period requested for write-off. In cases where all members who jointly signed the loan agreement are absent from their place of residence and there is no verifiable information about their whereabouts for two consecutive years or more, there is no need for a request for debt write-off;

b) A copy of the loan receipt with a certified true copy from the Social Policy Bank that issued the loan;

c) The original minutes proposing the handling of risky debts;

d) In cases where the customer is an economic organization, in addition to the documents mentioned in points a, b, and c of Clause 2 of this Article, the customer must supplement the documents mentioned in point d of Clause 1 of this Article;

đ) In addition to the documents mentioned in points a, b, and c of Clause 2 of this Article, the customer must supplement related documents as follows:

A certified copy of the minutes of the termination of labor contracts or notice of termination of employment contracts issued by the employer or notice from the local labor, invalidity, and social affairs authority regarding workers returning from abroad before the scheduled date. If these documents do not specify the reason for the worker's early return, a certified copy of the confirmation from the local labor, invalidity, and social affairs authority must be provided regarding this matter;

A certified copy of the Court's Decision regarding individuals having difficulties in understanding and controlling their behavior or losing civil capacity;

A certified copy of the confirmation from the initial county-level health insurance hospital or equivalent regarding cases where the borrower has family members suffering from serious illnesses; mental illness; other diseases leading to loss of civil capacity; long-term treatment required; permanent reduction in work capacity of 81% or more;

The original or certified copy of the court judgment or decision and notification from the enforcement agency regarding the execution of the judgment, the amount collected, and the amount uncollectible for cases where debts must be recovered according to court judgments but the debtor cannot execute them;

A certified copy of the death certificate or Court's Decision declaring the individual dead or missing for cases where the borrower has family members declared dead or missing according to Article 5, Clause 4 of this Regulation;

3. For debt cancellation (principal and interest):

a) The original customer's request for debt cancellation including the following main contents: cause of risk leading to inability to repay debt; extent of damage to capital and assets; ability to repay; outstanding principal and interest owed to the bank; amount of principal and interest requested for cancellation. In cases where the customer is deceased; missing; absent from their place of residence without verifiable information about their whereabouts for two consecutive years or more; having difficulties in understanding and controlling their behavior; losing civil capacity; suffering from mental illness after the debt moratorium period and no remaining joint signatories on the loan contract; and cases where the customer is declared bankrupt or dissolved according to the law, there is no need for a request for debt cancellation;

b) A copy of the loan receipt with a certified true copy from the Social Policy Bank that issued the loan;

c) The original minutes proposing the handling of risky debts;

d) In cases where the customer is dissolved according to the law, in addition to the documents mentioned in point b of Clause 3 of this Article, the original or certified copy of the Decision of the competent state agency regarding dissolution and related documents on asset disposal must be provided;

đ) In cases where the customer is declared bankrupt according to the law, in addition to the documents mentioned in point b of Clause 3 of this Article, the original or certified copy of the Bankruptcy Declaration Decision of the Court; documentation by the enforcement officer showing the amount of debt recovered or unrecovered by the Social Policy Bank; decision on suspending the execution of the bankruptcy declaration by the civil enforcement agency must be provided;

e) In addition to the documents mentioned in points a, b, and c of Clause 3 of this Article, the customer must supplement related documents as follows:

Documents specified in point đ of Clause 2 of this Article confirming mental illness, serious illness, other diseases leading to loss of civil capacity, difficulties in understanding and controlling behavior, permanent reduction in work capacity of 81% or more, death, or declaration of death, declaration of disappearance for cases where the borrower is an individual and all joint signatories on the loan contract are at risk due to one of the causes listed in Article 5, Clause 4 of this Regulation;

The original or certified copy of the death certificate or Court's Decision declaring death or disappearance, accompanied by a complete set of evidence and proof of the amount misappropriated confirmed by the commune authority for cases where the misappropriated debt belongs to someone who has died or disappeared;

The original or certified copy of the confirmation from the People's Committee of the commune or the competent state agency established for legal persons and economic organizations for cases where received debts have been subject to recovery measures but are still uncollectible;

8. Point a of Clause 2 of Article 8 is amended as follows:

"a) Chair the preparation to submit to the Prime Minister for amending and supplementing the Regulation on handling risky debts at the Vietnam Bank for Social Policies."

9. Clause 3, Clause 4 of Article 8 shall be amended as follows:

"3. The Board of Directors of the Vietnam Bank for Social Policies:

a) Issue regulations guiding loan extension business as stipulated in Clause 2 of Article 17 of Decree No. 78/2002/ND-CP dated October 4, 2002 of the Government on credit for poor people and other policy targets, Clause 2 of Article 14 of Decision No. 16/2003/QD-TTg dated January 22, 2003 of the Prime Minister on the Charter and Operation of the Vietnam Bank for Social Policies, and regulations guiding loan risk management business as stipulated in this Regulation to implement uniformly within the Vietnam Bank for Social Policies system;"

b) Decide on debt write-off for customers (in cases where the scale of each write-off batch does not exceed the Risk Reserve Fund of the Vietnam Bank for Social Policies).

4. The General Director of the Vietnam Bank for Social Policies

a) Decide on loan extension for customers. In cases where loan extension is delegated, it must be specified in the regulations guiding loan risk management business as stipulated in this Regulation;

b) Direct units within the Vietnam Bank for Social Policies system to comply with the Regulation on handling risky debts at the Vietnam Bank for Social Policies; simultaneously organize information dissemination and propaganda to each borrowing group and team to promptly and properly handle risks according to regulations."

10. Clause 4 of Article 9 shall be amended as follows:

"4. Within ten working days from the date of receipt of the decision on handling risky debts from the competent authority, the Vietnam Bank for Social Policies must issue a notification of debt handling to the customer and implement according to regulations."

Article 2. Repeal Point c Clause 2 of Article 6 of the Regulation on Handling Risky Debts at the Vietnam Bank for Social Policies issued together with Decision No. 50/2010/QĐ-TTg dated July 28, 2010 of the Prime Minister.

Article 3. Transitional Provisions

For cases where customers encounter risks due to certain objective reasons and the Vietnam Bank for Social Policies has received all required documents in accordance with regulations before the effective date of this Regulation, they may continue to be considered and handled according to the provisions of Decision No. 50/2010/QĐ-TTg dated July 28, 2010 of the Prime Minister and Circular No. 161/2010/TT-BTC dated October 20, 2010 of the Ministry of Finance.

Article 4. Effectiveness and Implementation

1. This Decision takes effect from May 19, 2021.

2. Repeal Circular No. 161/2010/TT-BTC dated October 20, 2010 of the Ministry of Finance guiding the implementation of the Regulation on Handling Risky Debts of the Vietnam Bank for Social Policies issued together with Decision No. 50/2010/QĐ-TTg dated July 28, 2010 of the Prime Minister.

3. Ministers, Heads of ministerial-level agencies, Heads of central government agencies, Chairmen of People's Committees of provinces and centrally governed cities, Chairman of the Board of Directors and General Director of the Vietnam Bank for Social Policies are responsible for implementing this Decision.

SITUATION OF INTEREST RATE SUPPORT IMPLEMENTATION

REPORT ON THE RESULTS OF HANDLING DEBTS OF THE VIETNAM BANK FOR SOCIAL POLICIES BY PROVINCE

Program: ...

Respectfully submitted to: Ministry of Finance, Ministry of Planning and Investment, State Bank of Vietnam

Unit of measurement: head, million dong

Form No. 02

SITUATION OF INTEREST RATE SUPPORT IMPLEMENTATION

REPORT ON THE RESULTS OF HANDLING DEBTS OF THE VIETNAM BANK FOR SOCIAL POLICIES BY CREDIT PROGRAM (From ... month ... year ... to ... month ... year ...)

Respectfully submitted to: Ministry of Finance, Ministry of Planning and Investment, State Bank of Vietnam

... day ... month ... year GENERAL DIRECTOR (Signature, stamp)