Joint Circular No. 09/2005/TTLT-NHNN-BTC guiding the write-off of debts and continued lending to poultry farmers affected by avian influenza according to Decision No. 309/2005/QĐ-TTg on financial support for avian influenza prevention and control.

JOINT CIRCULAR

GUIDELINES ON SUSPENDING LOAN PAYMENTS AND CONTINUING TO PROVIDE LOANS TO POULTRY FARMERS WHO HAVE SUFFERED LOSSES DUE TO AVIAN INFLUENZA ACCORDING TO DECISION NO. 309/2005/QĐ-TTg OF NOVEMBER 26, 2005 ISSUED BY THE PRIME MINISTER ON SUPPORTING FUNDS FOR PREVENTING AND CONTROLLING AVIAN INFLUENZA

On the basis of Article 3 and Clause 2, Article 5 of Decision No. 309/2005/QĐ-TTg dated November 26, 2005 issued by the Prime Minister on supporting funds for preventing and controlling avian influenza. The State Bank of Vietnam - Ministry of Finance provides guidelines on implementing the suspension of loan payments and continuing to provide loans to credit organizations for poultry farmers who have suffered losses due to avian influenza as follows:

I. REGARDING THE SUSPENSION OF LOAN PAYMENTS

1. Scope, duration, amount of outstanding debt, and eligible subjects for the suspension of loan payments:

a. Poultry farmers eligible for consideration for the suspension of loan payments include: households, individuals, farm owners, cooperatives, breeding facilities, and poultry farming enterprises (chickens, ducks, geese, swans) at central and local levels that have borrowed from credit organizations to raise poultry but have suffered losses due to avian influenza, with outstanding debts up to November 30, 2005 for loans within their due dates.

b. The suspension period is one year, from November 30, 2005 to November 30, 2006, during which credit organizations will not collect interest on new loans generated during the suspension period for the suspended debts.

c. If credit organizations have already collected interest on loans eligible for suspension from November 30, 2005 until this Circular takes effect, then these credit organizations must be responsible for fully refunding or offsetting against unpaid interest for poultry farmers.

d. Credit organizations eligible for the suspension of loan payments include: State Commercial Banks, Joint Stock Commercial Banks, Social Policy Banks, Central People's Credit Funds, and Local People's Credit Funds.

2. Documentation for the suspension of loan payments:

a. Request for suspension of loan payments:

- For local poultry farmers: The request for suspension of loan payments must be confirmed by the People's Committee of the commune, ward, or town regarding the losses suffered by the poultry farmers due to avian influenza.

- For central-level breeding facilities and poultry farming enterprises, the request for suspension of loan payments must be confirmed by the local authority, the People's Committee of the district or county, or the supervisory body of the enterprise.

b. Copies of loan contracts or borrowing agreements, and documents proving that poultry farmers still owe money to credit organizations.

c. The General Director (Director) of credit organizations is responsible for directing units within their system to guide poultry farmers to prepare documentation according to points a and b, Clause 2, Section I of this Circular.

3. Source of handling for unpaid interest during the suspension period:

Credit organizations providing the suspension of loan payments to poultry farmers who have suffered losses due to avian influenza will be allowed to reduce pre-tax profits corresponding to the amount of interest that credit organizations do not collect during the suspension period.

4. Implementation:

a. Preparation of documentation and implementation of the suspension of loan payments:

- The General Director (Director) of credit organizations directs branches under their jurisdiction to prepare documentation and the Application for Suspension of Loan Payments according to the attached Table 1 and Table 2 of this Circular by locality, commune, district, province, or city.

- Credit organizations compile the documentation for the application for suspension of loan payments and send it to the Department of Finance and the State Bank of Vietnam branch in the province or city before February 28, 2006 for verification and confirmation of the outstanding loan balances for poultry farmers eligible for suspension. The State Bank of Vietnam branch in the province or city is responsible for coordinating with the Department of Finance to complete the verification and confirmation of the outstanding loan balances for poultry farmers eligible for suspension, reporting to the People's Committee of the province or city for confirmation and consolidation according to the attached Table 3 of this Circular, and sending it along with detailed reports to the State Bank of Vietnam and the Ministry of Finance before March 31, 2006.

- After receiving the results of the verification and confirmation from the Department of Finance and the State Bank of Vietnam branch in the province or city, the General Director (Director) of credit organizations implements the decision to suspend loan payments for poultry farmers and is responsible for consolidating according to the attached Table 4 of this Circular and sending it to the State Bank of Vietnam and the Ministry of Finance before March 31, 2006.

b. At the end of the suspension period:

- The General Director (Director) of credit organizations directs branches under their jurisdiction to prepare documentation requesting exemption from interest for poultry farmers and submit it according to the attached Table 1A and Table 2A of this Circular to the State Bank of Vietnam branch and the Department of Finance before December 31, 2006 for verification and confirmation.

- The State Bank of Vietnam branch in the province or city coordinates with the Department of Finance to verify and confirm the legality of the documentation requesting exemption from interest for poultry farmers, reporting to the People's Committee of the province or city for confirmation and consolidation according to the attached Table 3A of this Circular, and sending it along with detailed reports to the Ministry of Finance and the State Bank of Vietnam before January 31, 2007.

- After receiving the results of the verification and confirmation from the Department of Finance and the State Bank of Vietnam branch in the province or city, the General Director (Director) of credit organizations is responsible for consolidating and reporting according to the attached Table 4A of this Circular, and sending it to the State Bank of Vietnam and the Ministry of Finance before January 31, 2007 to serve as the basis for considering and announcing the reduction in pre-tax profits corresponding to the amount of interest that credit organizations do not collect due to the suspension of loan payments for poultry farmers.

c. Based on actual circumstances, the State Bank of Vietnam will coordinate with the Ministry of Finance to establish a joint inter-ministerial inspection team to inspect the suspension of loan payments at some credit organizations.

d. The State Bank of Vietnam is responsible for directing credit organizations and State Bank branches in provinces and cities to comply with the provisions of this Circular.

e. The Ministry of Finance is responsible for directing local Departments of Finance to comply with the provisions of this Circular.

II. REGARDING THE CONTINUATION OF LOANS FOR POULTRY FARMERS ELIGIBLE FOR SUSPENSION OF LOAN PAYMENTS IF THEY NEED TO TRANSITION TO OTHER BREEDING OR INDUSTRIES

Poultry farmers who are currently being granted debt moratoriums, if they have a need to borrow funds for implementing livestock farming conversion or other occupations, credit organizations shall consider granting loans in accordance with Decision No. 1627/2001/QĐ-NHNN dated December 31, 2001 of the Governor of the State Bank on the issuance of loan regulations for credit institutions towards customers and Decision No. 127/2005/QĐ-NHNN dated February 3, 2005 on amending and supplementing certain provisions of the loan regulations for credit institutions towards customers and other current regulations.

III. IMPLEMENTATION PROVISIONS

1. This Circular shall take effect fifteen days after its publication in the Official Gazette.

2. During the implementation process, if any difficulties arise, report them in writing to the State Bank and the Ministry of Finance for consideration and resolution.

Place of Receipt:
- National Assembly Office,
- Office of the President;
- Prime Minister,
- Deputy Prime Minister - Chairman of the Steering Committee for Avian Influenza Prevention and Control,
- VPCP (2 copies),
- Ministry of Agriculture and Rural Development,
- Leadership of the Ministry of Finance,
- Leadership of the State Bank,
- Ministry of Justice (for review),
- People's Committees of provinces and centrally governed cities,
- Credit organizations,
- State Bank Branches in provinces and centrally governed cities,
- Provincial Departments of Finance,
- Official Gazette,
- Treasury Department (State Bank), Financial Department of Banks and Financial Institutions, Office (State Bank), Office (Ministry of Finance).

District, Ward...

DETAIL APPLICATION FOR DEBT MORATORIUM LOANS FOR POULTRY FARMERS WHO SUFFERED LOSSES FROM AVIAN INFLUENZA AND STILL HAVE OUTSTANDING DEBTS AS OF NOVEMBER 30, 2005

(Annexed to Circular Joint No. 09/2005/TTLT-NHNN-BTC dated December 30, 2005

State Bank - Ministry of Finance)

Commune, Ward/poultry farmer

Unit: dong

(Annexed to Circular Joint No. 09/2005/TTLT-NHNN-BTC dated December 30, 2005 State Bank - Ministry of Finance)
Branch District, Ward

Unit: dong

Credit organization
Branch District, Ward

Unit: dong

Branch
Branch District, Ward

Unit: dong

DETAIL COPY OF DEBT MORATORIUM OUTSTANDING DEBTS OF POULTRY FARMERS WHO SUFFERED LOSSES FROM AVIAN INFLUENZA

Commune, ward/debt moratorium agreement of poultry farmer
Branch District, Ward

Unit: dong

Column 5: The amount of interest that credit organizations collected from November 30, 2005 to the date when the joint circular took effect.

Credit organization branch in province/city…

Branch district, ward
Branch District, Ward

Unit: dong

Column 4: The amount of interest that credit organizations collected from November 30, 2005 to the date when the joint circular took effect.

Form 3A

Branch Director of State Bank
Branch District, Ward

Unit: dong

Column 4: The amount of interest that credit organizations collected from November 30, 2005 to the date when the joint circular took effect.

Form 3A

And the State-owned Commercial Joint Stock Bank has branches in the provinces and cities

Branch Director of State Bank
Branch District, Ward

Unit: dong

Column 4: The amount of interest that credit organizations collected from November 30, 2005 to the date when the joint circular took effect.

Form 3A