Joint Circular No. 102/1998/TTLT/BTC/NHNN guides the implementation of Decision No. 95/1998/QD-TTg dated May 18, 1998 of the Prime Minister on debt settlement in Phase II.

CIRCULARPreamble 

JOINT CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE BANK NO. 102/1998/TTLT/BTC-NHNN DATED JULY 18, 1998PreambleNumber: 07/2005/CT-NHNN
GUIDING THE IMPLEMENTATION OF THE DECISIONANUMBER 95/1998/Q
HPreamble/TTG - Office of the President of the StateDATED MAY 18, 1998 OF THE GOVERNMENT ON SETTLING- Office of the President of the StateDEBTS IN THE SECOND STAGE
Implementing Decision No. 95/1998/QPreamble/TTg dated May 18, 1998 of the Government on settling and paying debts in the second stage; After soliciting opinions from the Deputy Prime Minister, the Chairman of the Central Committee for Total Debt Settlement, and reaching consensus with the members of the Central Committee for Total Debt Settlement under various ministries and sectors; The Ministry of Finance and the State Bank of Vietnam hereby issue these guidelines on handling, settling, and accounting for debts in the second stage.
Handling, settling, and accounting for debts in the second stage shall be based on the provisions of the Central Committee for Total Debt Settlement in the Second Stage, Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Government, laws at the time of debt occurrence, and this Circular. - Office of the President of the StateGuarantees provided by organizations and individuals for enterprises and economic-social organizations to borrow capital, purchase goods on credit, according to Article 4 of Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Government, shall be based on confirmed guarantees and support for payment upon maturity, as follows:

+ If it is a social organization and an economic legal entity, it must have the signature of the person assigned the task, the seal of the organization and the economic legal entity.This Circular promulgates the Regulation on Distance Learning for Bachelor's Degree Programs.+ In other cases, responsibility lies with the individual.- Office of the President of the StateB. SPECIFIC PROVISIONS:ướI. SCOPE đOF DEBT SETTLEMENT AND PAYMENT PAST DUE 5. Video recorders (new and used).Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Government.ướDecision1. Fulfilling requirements stipulated in Article 13 of Decree No. 135/2021/NĐ-CP.1. Scope of debt settlement and payment.ưởIncludes overdue receivables and payables of state-owned enterprises (operating, suspended, dissolved, bankrupt), budget, State Bank, commercial banks, national reserves, social organizations, collective and individual economic organizations that have been declared and confirmed, or have been cross-checked and confirmed by creditors and debtors according to Decision No. 277/CT dated July 29, 1992 of the Chairman of the Council of Ministers (now the Prime Minister), and guidance from the Central Committee for Total Debt Settlement and relevant sectors regarding debt settlement in the second stage. 5. Video recorders (new and used).Debts arising in Vietnamese dong, foreign currency, gold, and physical assets from purchasing materials, goods, providing services, borrowing and lending credit, joint ventures and associations that have become overdue debts, amounts due to the state budget but not yet paid, national grain reserve debts. If domestic units and organizations owe foreign currency, gold except Rubles, they will be converted to USD ("US Dollar") for payment according to the exchange rate of USD and the price of gold at the time of declaring the debt (April 30, 1991), the exchange rate to convert to Vietnamese dong is 7,900 VND/USD (Circular No. 57/TTN.94 dated June 30, 1994 of the Central Committee for Total Debt Settlement guiding the implementation of Directive No. 235/TTg dated May 11, 1994 of the Prime Minister on total debt settlement in the second stage). ograms and2. Objects of debt settlement and payment: 5. Video recorders (new and used).a. Receivables and payables between entities owing each other: ograms and- Operating state-owned enterprises coded as type 10.ướ- Suspended, dissolved, bankrupt state-owned enterprises coded as type 80.ướ- Finance coded as: 70, 71, 72, 73. at the proposal of the Director of the Ministry's Office;- National Reserve. đ- Banks coded as types: 60, 61, 62, 63, 64.concerning the classification and determination of state management authority in the field of crop production as follows:

- Collective, private, mass organizations, and other objects coded as types: 20, 30, 40, 50, 90. - Office of the President of the Stateb. Economic components outside the state and social units, organizations having receivables and payables with state-owned enterprises (types 10-80), finance, banks, national reserves, and party enterprises.

c. Receivables and payables of state-owned enterprises (types 10-80) with foreign entities.

Debts of national grain reserves borrowed for famine relief according to Decisions No. 83/CT dated March 20, 1990, No. 348/CT-349/CT dated October 1, 1990, No. 168/CT dated May 25, 1991 of the Council of Ministers (now the Prime Minister) and Decisions No. 538-539-540-541/TTg in 1993 of the Prime Minister on famine relief loans also fall within the scope of implementation of this Circular.

II. BASIS FOR HANDLING AND SETTLING DEBTS IN THE SECOND STAGE.

Based on Joint Circular No. 12/TT-LB dated August 21, 1992 of the Ministry of Finance and the State Bank, and Circular No. 278/TTN-93 dated October 22, 1993 of the Central Committee for Total Debt Settlement; To have a basis for considering and handling debt settlement, there must be:

1. Debt settlement and payment files:

- Economic contracts, supplementary agreements to economic contracts, joint venture and association contracts, loan agreements with banks, and related documents concerning the import and export of materials and goods, and other commitment papers. - Office of the President of the State- Debt confirmation cards bearing signatures and seals of the debtor and the Debt Settlement Board's verification, or a debt reconciliation statement confirmed by the creditor and debtor.

For cards established based on the decision of the State Economic Arbitration or the judgment of the People's Court which has taken legal effect, the enterprise must attach copies of the decision or judgment. - Office of the President of the State- Plans and implementation of material and goods distribution.Preamble- Reports on reasons for non-recovery and non-payment of debts, with confirmation records of the cause of debt formation by the provincial or centrally-administered city Debt Settlement Board, and additional confirmation by the Debt Settlement Board of the relevant ministry or sector (the supervising authority of the enterprise) for central enterprises.
- Records confirming natural disasters and enemy sabotage by the commune authorities and summary tables compiled by the district. 

- Resolutions on dissolution, suspension of operations, bankruptcy, and asset disposal plans for dissolved enterprises approved by the Provincial People's Committee or the competent ministry.

For dissolved cooperatives:

+ Confirmation by the county or town People's Committee that the cooperative has self-dissolved and no longer exists.

+ Confirmation of the current status of cooperative assets (collective property).

2. Objects for debt processing and settlement:

a. Debts receivable and payable between entities owing each other:

- State-owned enterprises currently operating, coded as type 10.

- State-owned enterprises ceased operations, dissolved, or bankrupt, coded as type 80.

- Finance, coded as: 70, 71, 72, 73.

- National Reserve.

- Banks, coded as types: 60, 61, 62, 63, 64.

- Collective, private, social organizations, and other entities, coded as types: 20, 30, 40, 50, 90.

b. Debts receivable and payable of non-state economic components and social units to state-owned enterprises (types 10-80), Finance, Banks, National Reserve, and Party Enterprises.

c. Debts receivable and payable of state-owned enterprises (types 10-80) to foreign entities.

Debts of the National Reserve for famine relief loans made by units pursuant to Decision No. 83/CT dated March 20, 1990, Decision No. 348/CT-349/CT dated October 1, 1990, Decision No. 168/CT dated May 25, 1991, of the Council of Ministers (now Prime Minister), and Decisions No. 538-539-540-541/TTg in 1993 of the Prime Minister also fall within the scope of implementation under this Circular.

II.APROCEDURE FOR DEBT SETTLEMENT - Office of the President of the StateDURING THE SECOND PHASE. - Office of the President of the StateCHAPTER II.

Based on Joint Circular No. 12/TT-LB dated August 21, 1992, issued by the Ministry of Finance and the State Bank, and Circular No. 278/TTN-93 dated October 22, 1993, issued by the Central Committee for Comprehensive Debt Settlement; To have a basis for examining and settling debts, there must be:

1. Debt settlement and payment files:

- Economic contracts, annexes to economic contracts, joint venture and cooperation contracts, loan agreements with banks, related documents for material and goods imports and exports, and other commitment papers.

- Debt confirmation cards signed and stamped by the debtor and verified by the debt settlement board, or a debt reconciliation statement confirmed by both creditor and debtor.

For cards established based on the decision of the State Economic Arbitration or court judgment that has taken legal effect, the enterprise must attach copies of the arbitration decision or court ruling.

- Plans and implementation of material and goods distribution.

- Reports on reasons for inability to collect or repay debts, with a record of the cause of the debt confirmed by the provincial or centrally-administered city debt settlement board, and for central enterprises, additional confirmation from the debt settlement board of relevant ministries (the supervising authorities of the enterprises).

- Records confirming natural disasters or enemy actions by the commune authority and a summary list compiled by the district.

- Dissolution decisions, cessation of operations, bankruptcy, and asset disposal plans for dissolved enterprises, approved by the People's Committee of the province or the competent ministry.

For dissolved cooperatives:

+ Confirmation by the county or town People's Committee that the cooperative has self-dissolved and no longer exists.

+ Confirmation of the current status of cooperative assets (collective property).

In addition to the general documents required, the Bank's debts must also include the following types of documents:

- Decision on writing off loans granted by the Bank to certain entities pursuant to the Prime Minister’s Decision and the Governor of the State Bank.

- For private individuals who have died or gone missing: Death certificate, or confirmation of death issued by the provincial or central city People's Committee, and declaration of disappearance by the Court, if they fled from their locality with certification from the Village Police.

- For loans secured by collateral, there must be a document proving that the Bank has fully recovered the collateral assets to offset the debt value actually received.

- Three-year final reports of state-owned enterprises currently operating but suffering losses.

- Decision on writing off loans granted by the Bank to state-owned enterprises currently operating, analyzed according to each cause previously identified. - Overdue loans of state-owned enterprises currently operating due to objective reasons not yet resolved: prepare documents in accordance with Circular Jointly Issued by the Ministry of Finance and the State Bank No. 03/1997/TTLT/NHNN/BTC dated November 22, 1997 (if these debts were not addressed when implementing the above Circular). The documents must be classified, organized, summarized, and confirmed by the Provincial Debt Settlement Board, with proposals for handling through four forms: write-off, write-down, deferment, and conversion into capital contribution.

- Financial authorities owing the Bank:

+ Directives from the Ministry of Finance, Chairman of the Provincial People's Committee, or Provincial Party Committee regarding borrowing from commercial banks or the State Bank to pay salaries, social insurance premiums, etc., instead of budget funds.

+ Confirmation documents from the Department of Finance and the Provincial People's Committee regarding the use of the aforementioned loans to pay salaries, social insurance premiums, etc.

- Decisions on handling debts by supervisory bodies, specialized agencies, local authorities, and legal authorities concerning debts caused by subjective reasons.

- Documents related to guarantees, payment confirmations, and support provided by various levels of government, the Party, and specialized agencies when encountering difficulties.

- Documents requiring implementation in accordance with the policy of the Party, Government, and Governor of the State Bank regarding guarantees, payments, and deferred payment of material goods.

- Decisions to write off debts that have been declared. These documents must be supported by original copies, and if copies are used, they must be certified by competent authorities at the district level or higher or by Notary Public, with notarization fees paid according to administrative fees.

2. Analysis and confirmation documents of the causes of debt formation:

The subjects mentioned in Section I, Point 2 above shall be handled according to the causes of debt formation; Ministries, sectors, provinces, and centrally-administered cities shall base their analysis and classification of subjective and objective causes of overdue debts on Circular No. 278/TTN-93 dated October 22, 1993 of the Central Committee for Comprehensive Debt Settlement.

2.1. Due to changes in policies and mechanisms, non-state-owned enterprises, private individuals, and sole proprietors borrowed money and became unable to repay it because other state-owned enterprises that had occupied the funds were dissolved, ceased operations, or went bankrupt and could no longer repay the debt.

2.2. Due to natural disasters or enemy attacks.

2.3. Due to private individuals, sole proprietors who have died or gone missing, fled, or been imprisoned, leaving no assets, and their heirs are unable to settle the debt (these cases must be confirmed by legal documents from the Enforcement Agency and local authorities).

These cases will be processed after completing all steps as directed, confirmed by the Debt Settlement Boards at all levels, reviewed by the Ministry of Finance and the State Bank, and then submitted to the competent authority for decision-making. The decision-maker is the Chairman of the Provincial People's Committee (for enterprises and organizations under local jurisdiction) or the Ministry managing the economic sector after reaching a written agreement with the Ministry of Finance (for enterprises and units under central jurisdiction).

2.4. Subjective causes.

- Due to embezzlement, abuse of power, and intentional violation of regulations.

- Due to circular buying and selling using occupied capital sources.

- Due to violations of financial principles and credit regulations.

- False declaration and confirmation of fictitious debts.

- Establishment of enterprises without proper functions or conditions leading to the creation of debts.

- Dissolution but improper liquidation of assets in accordance with Decision No. 315/HĐBT dated September 1, 1990 and Decision No. 330/HĐBT dated October 23, 1991 of the Council of Ministers (now the Prime Minister) and Circular No. 25TC/TCDN dated May 15, 1997 of the Ministry of Finance guiding the implementation of Decree No. 50/CP dated August 28, 1996 on the establishment, division, merger, and dissolution of state-owned enterprises.

- Falsely declaring dissolution to evade debt.

- Due to collusion between creditors and debtors, acting as intermediaries for various levels of guarantee.

- Debts arising that are inconsistent with economic contracts and their appendices.

- Guarantees made beyond authority.

During the process of handling and settling overdue debts caused by subjective reasons of enterprises, Circular Jointly Issued by the Supreme People's Court, the Supreme Procuracy, the Ministry of Public Security (formerly the Ministry of Interior), the Ministry of Justice, and the National Economic Arbitration Council No. 05/TTLN dated August 21, 1992 shall be applied to guide the resolution of some issues related to the implementation of comprehensive debt settlement. First, all sources of the debtor's income must be fully recovered, and any remaining shortfall shall be handled as follows:

+ For Category 10 enterprises which are creditors, the shortfall shall be recorded in the production and business results.

+ Hand over to the Enforcement Agency to continue recovering the debt and transferring it to the local budget.

III. DEBT SETTLEMENT, PAYMENT, AND ACCOUNTING. 

a. State-owned enterprises currently operating in Category 10 with debts:

1. Category 10 enterprises with receivables and payables from Category 10 enterprises shall be settled normally: If the debtor cannot immediately repay, both parties shall negotiate and agree on a repayment schedule and other solutions approved by the competent authority.

2. For Enterprise Type 10 having receivables or payables with Enterprise Type 80, the following measures shall be taken:

2.1. Receivables: The actual amount collected from the enterprise according to the asset disposal plan of the dissolved enterprise based on Decision No. 315/HĐBT dated September 1, 1990 and Decision No. 330/HĐBT dated October 23, 1991 of the Council of Ministers (now the Prime Minister) and Circular No. 25/TC/TCDN dated May 15, 1997 of the Ministry of Finance guiding the implementation of Decree No. 50/CP dated August 28, 1996 on the establishment, division, merger, and dissolution of state-owned enterprises. Any difference not collected due to objective reasons shall be recorded in the production and business results of Enterprise Type 10 (maximum three years).

If the non-collection is due to subjective reasons, responsibility shall be assigned to individuals for payment to the enterprise.

2.2. Payables: The payable amount that has no recipient to pay to shall be offset against uncollectible receivables, and the remaining amount shall be recorded in the production and business results of Enterprise Type 10.

3. Enterprise Type 10 having receivables or payables with the State Budget:

3.1. Receivables:

- Subsidies or compensations according to the regulations during the planned economy period that have not been fully provided by the budget levels, local budgets shall settle for local enterprises; central budgets shall settle for centrally-managed enterprises. Creditors must provide detailed lists for financial authorities to review and settle.

- Overpaid amounts to the budget can be deducted from future payments; overpaid tax amounts confirmed by tax authorities can be deducted from future tax payments until the debt is settled (if it is import-export tax, confirmation by customs authorities is required).

- Debts for completed construction projects within and outside the plan that have not been paid, enterprises must prepare files including: Debt confirmation card, report on completed construction volume, final settlement of completed projects, funds already used, decision on out-of-plan construction. If using budget payments for construction, income and expenditure should be recorded. For local enterprises, the Department of Finance shall issue the income and expenditure orders based on the debt settlement files of the enterprise with confirmation from the debt settlement board and decisions of competent authorities. If using other sources, enterprises must use depreciation of fixed assets used, development fund, and other sources to repay debts. If insufficient, report to the People's Committee of the province or centrally-administered city (for local enterprises) and the economic management ministry (for centrally-managed enterprises) for allocation. If local budgets or central ministries cannot balance, report to the Ministry of Finance for consideration of supplementary support. If enterprises receive budget capital support, they shall record increased budget capital and implement payment for capital usage to the state.

- Debts guaranteed and repaid by the budget on behalf of the enterprise (guaranteed payment) or supported when facing difficulties, repaying debts when transferring enterprise assets: For local enterprises, provincial or centrally-administered city budgets shall handle. For centrally-managed enterprises, the central budget shall handle. If local budgets are imbalanced, the Chairman of the People's Committee of the province or centrally-administered city shall report to the Ministry of Finance for consideration and decision by the Prime Minister.

3.2. Payables to the State Budget:

- Unpaid amounts to the budget include: Various taxes, basic depreciation, price differences, profits, import sales proceeds under protocols, budget loans, enterprises must find all sources to pay the budget, if unable to pay, report the reasons to the People's Committee of the province or centrally-administered city (for local enterprises) and the Ministry of Finance (for centrally-managed enterprises) for review and handling:

+ If used for infrastructure construction, asset procurement, working capital replenishment, which were granted to the enterprise by the budget through income and expenditure orders, enterprises shall record reduced payable amounts, increased state capital grants, based on the income and expenditure orders of the financial authority for accounting.

+ If used for subsidies to enterprise staff during difficult times, record reduced payable amounts, increased state subsidies and expenditures for the subsidized groups (must have detailed lists and signatures of the recipients).

- Advance payments from the budget for export goods to repay foreign debts, if converted into foreign currency to establish state reserves or purchase circulating goods, due to price fluctuations and exchange rates, if there is a shortfall confirmed by financial authorities, provincial debt settlement boards, or economic management ministries, the shortfall due to these reasons may be waived.

- Remaining inventory of goods and materials that are not needed or have deteriorated quality, enterprises may liquidate and remit the actual proceeds to the budget. Liquidation shall be conducted publicly and through auction according to current regulations.

4. Enterprise Type 10 having debts with banks:

4.1. Receivables: If the bank has debts to the enterprise, the bank shall immediately settle or deduct from the enterprise's payable amount.

4.2. Payables: Enterprises must find sources to repay the principal debt to the bank; interest on credit declared or undeclared but recorded outside the books, confirmed by the debt settlement board and the bank, shall be waived. If the principal debt is not yet repaid, enterprises may negotiate with the bank to agree on a repayment schedule.

Cases where loans are converted into budget grants: For funds still being used in production and business but unable to repay the debt, used for enterprise infrastructure construction. After inspection by financial authorities and banks, and balanced in the production and business settlement statement of the enterprise, loan capital can be converted into grant capital. Banks shall process the conversion, enterprises shall record reduced bank loan debt, increased budget grant capital, and implement payment for capital usage to the state from the date of the loan-to-grant capital conversion order.

5. Enterprise type 10 has debts owed to the State Reserve.

If enterprise type 10 has debts owed to the State Reserve, they shall be handled according to Article 13, Article 14, and Article 19 of Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Government Prime Minister. If these enterprises have debts but cannot have them waived, the outstanding debt will be recorded as an increase in state capital provided to the enterprise (handled like budget debts), reducing the State Reserve's debts.

6. Enterprise type 10 has receivables and payables with other economic sectors and socio-economic organizations.

6.1. Receivables: Enterprise type 10 has receivables from other economic sectors and socio-economic organizations. These entities must find all sources to repay the principal debt to enterprise type 10. If these entities deliberately fail to repay the debt, the enterprise reports to the Debt Settlement Committee at various levels (the file includes as stipulated in Section II, Point a). Measures for compulsory enforcement shall be applied according to Circular No. 05/TTLN dated August 21, 1992 of the Supreme People's Court, the Supreme People's Procuracy, the Ministry of Home Affairs (now the Ministry of Public Security), the Ministry of Justice, and the State Economic Arbitration Board. For non-state-owned economic units and other economic organizations, after full collection if there is still a shortfall that cannot be collected, enterprise type 10 shall record it in its production and business results. The uncollected amount shall be documented and transferred to the local tax authority for continued collection and submission to the local budget.

6.2. Payables: Enterprise type 10 has payables to other economic sectors and socio-economic organizations and must find all sources to repay the principal debt squarely to these entities.

7. Enterprise type 10 has foreign debts:

- Enterprises that borrow and repay on their own or purchase goods on deferred payment terms must arrange their own funds to repay foreign debts in the original currency. If unable to repay the debt, the enterprise must report the reasons to the Chairman of the Provincial People's Committee (if it is a local enterprise) or the relevant ministry or sector (if it is a central enterprise) for consideration:

+ If the cause is objective, the provincial people's committee, ministry, or sector will support repayment. If there is no source, it should be reported to the Ministry of Finance for submission to the Prime Minister for consideration and resolution.

+ If the cause is subjective, individual responsibility will be pursued, all sources will be fully utilized, and the shortfall will be deducted from the post-tax profit of the enterprise.

- Enterprises that borrow or buy and sell goods from abroad according to plans and directives of the State, if the remaining unpaid portion cannot be repaid, the State will assume the debt to repay on behalf of the foreign creditor.

b. Enterprises ceasing operations and being dissolved under category 80 have receivables and payables.

1. Receivables from:

- Enterprise type 10 does not need to repay, and it shall be recorded in the production and business results.

- Enterprise type 80: the debt will be waived.

- Finance: considered as a budget payment.

- State Reserve: treated as a budget receipt.

- Banks: the non-repayable amount of the bank is the bank's income.

- Collective economy, private economy, social organizations, and other entities: transferred to the tax authority for recovery and submission to the budget.

2. Payables to:

- Enterprise type 10 shall be handled as uncollectible receivables of enterprise type 10 as stipulated in Section III, Part a, Point 2, Subsection 2.1 above.

- Enterprise type 80: the debt will be waived.

- Finance: the debt will be waived.

- State Reserve: treated as a budget receipt (waived debt).

- Banks may collect debts according to the asset disposal plan of the dissolved enterprise as per Decision No. 315/HĐBT dated September 1, 1990 and No. 330/HĐBT dated October 23, 1991 of the Council of Ministers (now the Prime Minister), Circular No. 25TC/TCDN dated May 15, 1997 of the Ministry of Finance guiding the implementation of Decree No. 50/CP dated August 28, 1996 on the establishment, division, merger, and dissolution of state-owned enterprises, and Article 7 of Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Prime Minister. - Collective economy, private economy, social organizations, and other entities: use the proceeds from the liquidation of assets to repay the debt; any shortfall shall be covered by the liquidation board or the competent management authority of the unit to repay the principal debt on behalf of the debtor. If there is no source, the competent authority shall issue a decision to dissolve the enterprise and report to the Ministry of Finance for submission to the Prime Minister for resolution.

- Foreign debts for which the competent authority responsible for establishing and dissolving the enterprise shall be responsible for repaying on behalf of the enterprise:

+ If there is no source to repay the debt, the Chairman of the Provincial People's Committee (for local enterprises) or the Minister of the economic sector (for central enterprises) shall report to the Ministry of Finance for consolidation and submission to the Prime Minister for consideration and decision.

+ If the cause is subjective, individual responsibility shall be pursued, and administrative, economic, and legal measures shall be taken depending on the degree of loss incurred.

c. Handling Bank Debts.

1. Payables:

1.1. For the State Bank, the payable debts of enterprise type 10 and other entities shall be offset against the receivables of each entity, and the remaining amount shall be immediately settled by the bank to the respective entities.

1.2. For Commercial Banks, the payable debts of enterprise type 10 and other entities shall be handled as the payable debts of enterprise type 10.

2. Receivables from:

2.1. Enterprises type 80 and types 20, 30, 40, 50, 90 that have been dissolved and ceased operations:

The receivables of the banks from these enterprises shall be written off according to the decisions of the Prime Minister and the Governor of the State Bank for enterprises type 80 and types 20, 30, 40, 50, 90 that have been dissolved or ceased operations awaiting dissolution, or where individuals have died, fled, or disappeared (no one to repay the debt). The handling shall be as follows:

- For enterprise type 80, the debt shall be fully recovered according to the debt repayment plan for dissolved enterprises as per Decision No. 315/HĐBT dated September 1, 1990 and No. 330/HĐBT dated October 23, 1991 of the Council of Ministers (now the Prime Minister), and Circular No. 25/TC/TCDN dated May 15, 1997 of the Ministry of Finance guiding the implementation of Decree No. 50/CP dated August 28, 1996 on the establishment, division, merger, and dissolution of state-owned enterprises. Any shortfall that cannot be recovered shall be handled according to Article 7 of Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Prime Minister.

- The objects are types 20, 30, 40, 50, 90 that have been dissolved, ceased operations, and fully liquidated all assets of collectives, individuals, social organizations, successors of the unit's assets, and debtors as prescribed by Law. The remaining amount that cannot be recovered shall be handled by commercial banks according to Points 1-2 of Article 7 of Decision No. 95/1998/QĐ-TTg dated May 18, 1998, of the Government Prime Minister. The individual debts of debtors not paid to the Bank shall be transferred to the Department of Finance for continued recovery and submission to the local budget.

2.2. Enterprises of type 10 and types 20, 30, 40, 50, 90 currently operating:

- Debts receivable from enterprises of type 10:

+ Type of enterprise that has incurred losses for three consecutive years and is unable to rectify the situation, the Bank shall request the Court to initiate bankruptcy proceedings against the enterprise according to the Bankruptcy Law. After implementing the bankruptcy process according to the Law, if there remains an uncollectible difference, it will be handled according to Points 1-2 of Article 7 of Decision No. 95/1998/QĐ-TTg dated May 18, 1998, of the Government Prime Minister.

+ Type of enterprise that has been reorganized and oriented towards development, debts that have been written off and those not yet written off but due to objective reasons shall be implemented according to Point 2 of Article 9 of Decision No. 95/1998/QĐ-TTg dated May 18, 1998, of the Government Prime Minister.

Commercial Banks must report to the Ministry of Finance and the State Bank the balance of loans from the State Bank up to the time of debt settlement so that the State Bank and the Ministry of Finance can review and decide on converting loan capital into state budget capital. The portion that cannot be converted into state budget capital shall continue to be written off over the next three years.

2.3. Debts receivable due to subjective reasons of the debtor:

- For intentional fraud, embezzlement, the Bank shall prepare files to transfer to the competent legal authorities for handling.

- For misusing borrowed funds for purposes other than intended, the debtor must exhaust all sources to repay the debt, including selling assets purchased with borrowed funds. If the assets purchased with borrowed funds generate profits in production and business activities, the Commercial Bank shall report to the State Bank and the Ministry of Finance for consideration and handling according to Point 2 of Article 9 of Decision No. 95/1998/QĐ-TTg dated May 18, 1998, of the Government Prime Minister, and recommend administrative, economic, and legal measures against violators of state management and credit mechanisms.

2.4. Debts receivable due to subjective reasons of the Bank: The State Bank and Commercial Banks shall implement according to Item 1 of Section A, Part II of Circular Joint No. 03/1997/TTLT-NHNN-BTC dated November 22, 1997, of the Ministry of Finance and the State Bank guiding the handling of overdue debts of state-owned banks through post-audit adjustments. They must exhaust all sources of the violator, hold individuals (including leaders) accountable under the law, and deduct any unrecovered debts from the post-tax profits of Commercial Banks.

2.5. Debts of local financial agencies borrowing from the State Bank and Commercial Banks: According to directives from the Ministry of Finance, Provincial Party Committees, Municipal Party Committees, People's Committees of provinces and centrally-administered cities, these debts shall be reduced from the payments to the State Budget of the State Bank and Commercial Banks.

3. Debts arising from guarantees:

- Loans provided to domestic units, guaranteed borrowings, and payments due but not made by the guaranteed party who lacks the ability to pay, the guaranteeing bank must immediately pay the debt to the creditor and require the guaranteed party to accept the debt obligation with the bank.

- Foreign and domestic loans designated by the State that have become due but the bank lacks the ability to repay on behalf of the borrower, the Commercial Bank shall compile reports to the State Bank and the Ministry of Finance for submission to the Government Prime Minister for separate decision-making.

- Overdue debts of state-owned enterprises currently operating due to objective reasons that have not been written off, the Commercial Bank shall report to the provincial debt settlement committees, which shall consolidate reports to the Ministry of Finance and the State Bank, and the central debt settlement steering committee for handling according to Points 1-2 of Article 9 of Decision No. 95/1998/QĐ-TTg dated May 18, 1998, of the Government Prime Minister.

- Debts guaranteed by supervisory bodies, government levels, and Party committees: the guarantor must repay the debt on behalf of the unit, and if repayment is not possible, report the reasons to the central debt settlement steering committee for submission to the Government Prime Minister for decision-making.

4. Debts receivable of the Bank not specified in Decision No. 95/1998/QĐ-TTg dated May 18, 1998, of the Government Prime Minister, currently being monitored at the State Bank, such as:

- Debts receivable from enterprises that borrowed from the State Bank before the establishment of state-owned commercial banks and were not transferred to commercial banks.

- Debts receivable from credit cooperatives that borrowed before 1990 and have since been dissolved or self-disintegrated.

- Debts from phase I and II loan repayments (seed capital): including written-off and unwritten-off debts.

These debts shall be handled according to Circular Joint No. 03/1997/TTLT-NHNN-BTC dated November 22, 1997, of the Ministry of Finance and the State Bank guiding the handling of overdue debts of state-owned banks through post-audit adjustments.

5. Debts guaranteed by Commercial Banks that have repaid loans on behalf of borrowing enterprises and have executed purchase contracts, now the guaranteed enterprises cannot repay the debt, the Banks shall report to the provincial debt settlement committees for classification and reporting to the central debt settlement steering committee and the Ministry of Finance for government guidance on handling.

Enterprises that have not completed the debt acceptance procedures must now accept the debt from the guaranteeing bank for the amount already settled on their behalf.

Guarantees provided by Commercial Banks according to government directives for enterprises to borrow or guarantee payments shall be handled by the Commercial Bank after exhausting all debt collection efforts. The remaining uncollectible amount shall be reported to the State Bank and the Ministry of Finance for submission to the Government Prime Minister for resolution.

d. Debts receivable and payable of the National Reserve.

Handle them like budget debts, with the following additional considerations:

1. The National Reserve's debts receivable from Category 10 enterprises shall be handled as provided in Section III, Point a, Subsection 5 above.

2. For the National Reserve's debts receivable from Category 80 enterprises, after collecting all possible proceeds from asset liquidation plans to repay creditors according to Decision No. 315/HĐBT dated September 1, 1990 and No. 330/HĐBT dated October 23, 1991 of the Council of Ministers (now the Prime Minister) and Circular No. 25/TC/TCDN dated May 15, 1997 of the Ministry of Finance guiding the implementation of Decree No. 50/CP dated August 28, 1996 on the establishment, division, merger, and dissolution of state-owned enterprises, the Branch of National Reserve shall report to the Local Debt Settlement Board and the National Reserve Bureau for the remaining debt to be waived.

3. The National Reserve's debts receivable from other economic sectors and socio-economic organizations:

3.1. These entities still in existence must bear the responsibility to repay the principal debt to the National Reserve. If these entities intentionally fail to repay the debt, the Branch of National Reserve shall report to the Debt Settlement Boards at various levels (the file includes as stipulated in Section II, Point 1) to apply coercive measures according to Joint Circular No. 05/TTLN dated August 21, 1992 of the Supreme People's Court, the Supreme People's Procuracy, the Ministry of Interior (now the Ministry of Public Security), the Ministry of Justice, and the State Economic Arbitration.

3.2. Debts receivable for grain from other economic sectors:

For units classified as Categories 20, 30, 40, 50, and 90 that now have ceased operations and dissolved, the authority that established these organizations shall be responsible for repaying the debt if the debtor cannot repay it. The authority that established the unit must report the reasons to the Provincial Debt Settlement Board for examination and handling according to Article 15 of Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Prime Minister.

3.3. Debts receivable for grain or advance money for purchasing grain where the debtor has been arrested but not yet tried, or has fled (must be confirmed by the police station or district police). The Branch of National Reserve may transfer the debt to the People's Committee of the province or centrally-administered city for the investigation agency (provincial or city police) to continue investigating and recovering the debt to be deposited into the local budget.

3.4. For debts receivable for grain borrowed by the People's Committee of the province or centrally-administered city from the National Reserve Fund after the 1989 flood and subsequent years to assist the people and restore public works, the People's Committee of the province or centrally-administered city shall be responsible for recovering the debt to repay the National Reserve Bureau. Any unrecovered portion shall be handled according to Article 17 of Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Prime Minister. The Branch of National Reserve shall report to the Local Debt Settlement Board and the National Reserve Bureau including:

- Assistance to the people: the assisting unit shall prepare a list of each household receiving assistance, the quantity of grain or the amount of money converted to grain, the address of each household receiving assistance, confirmed by the People's Committee of the ward or commune and the District Financial Office.

- Borrowing of grain from the National Reserve to restore public works: a list of restored public works, the amount settled after restoration, the corresponding quantity of grain (calculated based on the price at the time of settlement) confirmed by the Provincial Department of Finance.

3.5. For debts receivable for grain where the debtor has died, there must be confirmation from the People's Committee of the ward or commune that the deceased debtor's heir has no assets to repay the debt. The Branch of National Reserve shall prepare a file and report to the Local Debt Settlement Board to request the debt to be waived.

3.6. For debts receivable for advance money for purchasing grain or borrowing grain from the National Reserve during the years 1988-1990, if the unit has already paid the advance money or partially repaid in kind, and the remaining debt has been fully repaid in cash before April 30, 1991, calculated based on the purchase price of grain at the time of borrowing, and there is still a debt, then the debt will be waived. Payments made in cash and in-kind prior to this circular will not be recalculated.

4. The price of grain for debt settlement shall be implemented according to Article 19 of Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Prime Minister.

5. The National Reserve Bureau shall compile the amounts already settled according to the authority of the Central Debt Settlement Steering Committee and report to the Ministry of Finance to issue a decision to reduce the reserve capital.

C. IMPLEMENTATION ORGANIZATION:

1. Creditors, debtors, guarantors, and heirs (current leaders of the units) are the subjects responsible for settling debts in Phase II according to this Circular.

In cases where both creditor and debtor parties cannot resolve and settle the debt due to disputes, the authority deciding the establishment of enterprises, units, and organizations, together with the state capital and asset management agency at the enterprise and the local Debt Settlement Board, shall propose solutions to higher authorities. The authority deciding or authorized to establish enterprises shall be responsible for handling and settling the debts of enterprises under its establishment decisions.

In cases where there is disagreement among management agencies regarding the resolution of debt settlement, relevant ministries, provincial and centrally-administered city Debt Settlement Boards shall report to the Ministry of Finance and the State Bank for consolidation and submission to the Prime Minister for decision.

2. Ministers of Ministries, Heads of agencies equivalent to Ministries, and Chairmen of provincial and centrally-administered city People's Committees shall be responsible for directing creditors and debtors within their jurisdiction to promptly analyze, classify, and resolve the final settlement of debts in Phase II according to the provisions herein. Cases not covered by this Circular shall be resolved according to current regulations.

3. Debt Settlement Boards at all levels shall examine, handle, and settle debts promptly according to this Circular. Decisions on debt settlement and repayment must be made collectively.

Debt Settlement Boards at all levels shall consider serious violations with criminal indications and recommend competent authorities to initiate prosecution and investigation.

Every organization and individual who forges certificates, takes advantage of debt processing and settlement to embezzle state assets, and seek personal gain shall be dealt with according to current laws.

Each level's Debt Settlement Committee shall report monthly on the results of debt settlement and handling during Phase II to the Central General Debt Settlement Steering Committee to report to the Prime Minister for guidance.

This Circular shall take effect fifteen days from the date of signature.

During implementation, if there are any difficulties, localities, ministries, and sectors shall promptly report to the Ministry of Finance, the State Bank, and the Central General Debt Settlement Steering Committee for study and supplementation.