Joint Circular No. 102/1998/TTLT/BTC-NHNN guiding the implementation of Decision No. 95/1998/QĐ-TTg dated May 18, 1998 of the Prime Minister on handling payment of debts in phase II.

JOINT CIRCULAR
HGuidelines for implementing Decision No. 95/1998-QĐ-TTg dated May 18, 1998 of the Government on handling and settling debts in phase II
Implementing Decision No. 95/1998-QĐ-TTg dated May 18, 1998 of the Government on handling and settling debts in phase II; After soliciting guidance from the Deputy Prime Minister, the Head of the Central Steering Committee for Comprehensive Debt Settlement, and reaching consensus with members of the Central Steering Committee for Comprehensive Debt Settlement under various ministries and sectors, the Ministry of Finance and the State Bank of Vietnam provide guidelines on issues related to handling, settling, and accounting for debts in phase II as follows:

The subjects who have declared and confirmed debts, or those who have not declared but 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 the project on settling public debts in phase II are the targets of this Circular.

A. General Provisions:

Parties with receivables and payables that have declared and confirmed debts, or those that have not declared but 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 the project on settling public debts in phase II are the subjects of this Circular.

Handling and settling debts in phase II shall be based on the provisions of: Comprehensive settlement of debts in phase II, Decision No. 95/1998/QĐ-TTg dated May 18, 1998 of the Prime Minister, laws at the time of debt occurrence, and this Circular.

Guarantees provided by organizations and individuals for enterprises and economic-social organizations to borrow capital, purchase goods on deferred payment according to Article 4 of Decision No. 95/1998/QĐ-TTg dated May 18, 1998 of the Prime Minister, based on guarantee confirmation and support for payment upon maturity, shall be regulated as follows:

If it is a social organization and an economic legal entity, there must be the signature of the person assigned the task, the seal of the organization and the economic legal entity.

In other cases, responsibility lies with the individual.

B. Specific Provisions:

I. Scope of objects for handling and settling overdue debts pursuant to

Decision No. 95/1998/QĐ-TTg dated May 18, 1998 of the Prime Minister.

1. Scope of handling and settling debts.

Including overdue receivables and payables of state-owned enterprises (operating enterprises, suspended enterprises, dissolved enterprises, bankrupt enterprises), budget, State Bank, commercial banks, national reserves, social organizations, collective economic organizations, and individual businesses 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 the guidance of the Central Steering Committee for Comprehensive Debt Settlement and relevant sectors on settling public debts in phase II.

Debts arising in Vietnamese dong, foreign currency, gold, and physical assets due to the sale of materials, goods, service provision, credit lending, joint venture investment that have become overdue debts, amounts payable to the state budget but not yet paid, and national reserve grain debts. If domestic units and organizations owe foreign currency, gold except Rubles, they will be converted to USD "US Dollar" for settlement according to the USD exchange rate and gold price at the time of declaring the debt (April 30, 1991), the exchange rate converted to Vietnamese dong is 7,900 VND/USD (Circular No. 57/TTN.94 dated June 30, 1994 of the Central Steering Committee for Comprehensive Debt Settlement guiding the implementation of Directive No. 235/TTg dated May 11, 1994 of the Prime Minister on comprehensive debt settlement in phase II).

2. Objects for handling and settling debts:

a. Receivables and payables between entities owing each other:

Operating state-owned enterprises coded as type 10.

Suspended, dissolved, or bankrupt state-owned enterprises coded as type 80.

Financial coded as: 70, 71, 72, 73.

National Reserve.

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

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

b. Economic components outside the state and social units with receivables and payables towards state-owned enterprises (types 10-80), financial institutions, banks, national reserves, and Party enterprises.

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

Grain debts of the national reserve that units borrowed for famine relief according to Decisions No. 83/CT dated March 20, 1990, No. 348/CT-349/CT dated October 1, 1990, and 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 phase II.

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 Steering Committee for Comprehensive Debt Settlement; To have a basis for examination and settlement, the following must be available:

1. Debt handling and settlement files:

Economic contracts, supplementary agreements to economic contracts, joint venture and joint operation contracts, loan agreements with banks, and related documents concerning the import and export of materials and goods, and other commitment papers.

Debt confirmation cards bearing signatures and seals of the debtor and the Debt Settlement Board's verification and confirmation, or reconciliation statements confirmed by both 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 arbitration decision or court judgment.

Plans and implementation of material and goods distribution.

Reports on reasons for non-recovery and non-payment of debts with records confirming the causes of debt formation by the provincial debt settlement board, and for central enterprises, additional confirmation by the debt settlement boards of relevant ministries and sectors (as the supervising authorities of the enterprises).

Records confirming natural disasters and enemy sabotage by the local government and summary tables compiled by the district level.

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 city people's committee regarding the cooperative's self-dissolution and non-existence of the management board.

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

In addition to the general files, debts of banks must include the following additional files:

Decisions to write off bank loans to certain entities according to the Prime Minister's and the Governor of the State Bank's decisions.

For private debts of deceased or missing individuals: Death certificate, or confirmation of death issued by provincial or centrally-administered city judicial authorities, and court declaration of disappearance, if the individual has fled the locality with certification from the local police station.

For loans secured by collateral, there must be documentation proving that the Bank has realized the collateral assets to recover the debt equivalent to the actual value received.

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

Decision to write off overdue bank loans of state-owned enterprises still in operation according to each previously analyzed cause. - Overdue bank loans of state-owned enterprises still in operation due to objective reasons not yet resolved: prepare files in accordance with Circular No. 03/1997/TTLT-NHNN-BTC dated November 22, 1997 (if these debts have not been processed when implementing the above joint circular). The files must be classified, arranged, summarized, and confirmed by the provincial debt settlement board, with proposals for handling through four forms: write-off, write-down, extension, conversion into capital contribution.

Financial agencies owing banks:

Directives from the Ministry of Finance, Chair of the People's Committee of provinces or centrally-administered cities, or Provincial Party Committees, City Party Committees regarding borrowing from commercial banks or State banks to pay salaries, social insurance premiums instead of budget allocations, etc.

Confirmation documents from the Department of Finance and the People's Committee of the province regarding the use of the aforementioned loan for salary payments, social insurance premiums, etc.

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

Documents on 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 borrowing for the distribution of goods with deferred payment.

Decisions to write off debts that have been declared. The relevant files related to any debt must be proven by original documents; if copies, they must be certified by competent authorities at district or county level or notarized by a state notary, with notary fees paid according to administrative fees.

2. Documents analyzing and confirming the causes of debt occurrence:

The subjects mentioned in Section I, Point 2 above will be handled according to each cause of debt occurrence; Ministries, sectors, centrally-administered provinces and 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 Debt Settlement Steering Committee.

2.1. Due to changes in policies and mechanisms, non-state-owned enterprises, private businesses, and individuals who borrowed money are no longer capable of repaying their debts because other state-owned enterprises that occupied funds have been dissolved, ceased operations, or gone bankrupt and are unable to repay.

2.2. Due to natural disasters or enemy attacks.

2.3. Due to private individuals or individuals who have died, disappeared, fled, or been imprisoned without assets, and whose heirs are unable to settle the debt (such cases must be confirmed by legal documents from enforcement agencies and local authorities).

These cases will be handled after completing all steps as guided, and must be confirmed by the debt settlement boards at all levels, reviewed by the Ministry of Finance and the State Bank, then submitted to the competent authority for decision-making. The decision-maker is the Chairman of the People's Committee of provinces or centrally-administered cities (for enterprises and organizations under local jurisdiction), the sector management ministry after reaching agreement in writing with the Ministry of Finance (for enterprises and units under central jurisdiction).

2.4. Subjective causes.

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

Due to round-trip purchases using occupied funds.

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 No. 330/HĐBT dated October 23, 1991 of the Council of Ministers (now 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.

False dissolution to evade debts.

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

Debts arising that are inconsistent with economic contracts and annexes to such contracts.

Unauthorized guarantees.

In the process of handling and settling overdue debts caused by subjective reasons of enterprises, the provisions of Joint Circular No. 05/TTLN dated August 21, 1992 of the Supreme People's Court, the Supreme People's Procuracy, the Ministry of Public Security (formerly the Ministry of Internal Affairs), the Ministry of Justice, and the State Economic Arbitration Commission guiding the resolution of certain issues related to the implementation of comprehensive debt settlement shall apply. First, realize all sources of income from the debtor, and handle the shortfall as follows:

Enterprises of type 10, as creditors, shall record the shortfall in their production and business results.

Transfer to the Enforcement Agency to continue recovery from the debtor and remit to the local budget.

III. Handling, settlement, and accounting of debts.

a. State-owned enterprises of type 10 with debts:

1. Enterprises of type 10 with receivables and payables from enterprises of type 10 shall be settled normally: If the party with payable debts does not have the immediate ability to repay, both parties shall negotiate and agree on a repayment schedule and alternative solutions approved by the competent authority.

2. Enterprises of type 10 with receivables and payables from enterprises of type 80 shall be handled as follows:

2.1. Debts to be collected: The actual amount of debts collected by 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. The difference not collected due to objective reasons for type 10 enterprises shall be recorded in the production and business results (maximum three years).

If the reason is subjective, responsibility shall be assigned to individuals who must pay the enterprise.

2.2. Debts to be paid: The amount of debts that cannot be paid to any object, which will be offset against the uncollectible receivables, and the remaining amount shall be recorded in the production and business results of type 10 enterprises.

3. Type 10 enterprises have debts to the State budget:

3.1. Debts to be collected:

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

Overpaid amounts to the State budget can be deducted from future payments; overpaid tax amounts confirmed by tax authorities can be deducted from future 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 allocated funds, enterprises must prepare files including: Debt confirmation card, report on completed construction volume, final settlement of completed projects, sources of funds used, and decision on out-of-plan construction. If using State budget funds for construction, income and expenditure should be recorded. For local enterprises, the Department of Finance shall issue the recording orders; for centrally-managed enterprises, the Ministry of Finance shall issue them 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 of funds, enterprises must use depreciation of fixed assets, development funds, and other sources to repay the debt; 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 support for the difference. If enterprises receive capital support from the State budget, enterprises shall record an increase in State budget capital and implement payment for capital usage to the State.

Debts guaranteed and repaid by the State budget on behalf of enterprises (payment guarantee) or supported when facing difficulties, repaying debts when transferring enterprise assets: For local enterprises, provincial or centrally-administered city budgets shall handle it. For centrally-managed enterprises, the central budget shall handle it. If local budgets become 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. Debts to the State budget:

Unpaid amounts to the State budget include: Various taxes, basic depreciation, price differences, profits, import sale proceeds under protocols, State budget loans, enterprises must find all sources to pay the State 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 consideration and handling.

If used for constructing infrastructure, purchasing assets, or replenishing working capital, the State budget shall settle for enterprises through income and expenditure records, enterprises shall record a reduction in payable State budget amounts, an increase in State capital, based on the income and expenditure orders issued by financial authorities.

If used for subsidizing enterprise staff during difficult times, enterprises shall record a reduction in payable State budget amounts, an increase in State subsidies and expenditures for subsidized groups (must have detailed lists and confirmations from recipients).

Advance payments from the State budget for export goods to repay foreign debts, if converted into foreign currency to establish a national reserve fund, or for purchasing reserve goods for circulation, due to price fluctuations and exchange rates, if there is a shortage confirmed by financial authorities, the provincial debt settlement board, or the economic management ministry, the shortfall can be waived due to these reasons.

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

4. Type 10 enterprises have debts to banks:

4.1. Debts to be collected: If the bank has debts to the enterprise, the bank shall immediately settle or deduct from the amount owed by the enterprise to the bank.

4.2. Debts to be paid: Enterprises must find sources to repay the principal to the bank; interest on credit already declared or undeclared but recorded outside the books, confirmed by the Debt Settlement Board and the bank, can be waived. If the principal cannot be repaid, enterprises may negotiate with the bank to agree on a repayment schedule.

Cases where loans can be converted into State budget capital: Capital still being used in production and business but unable to repay the debt, used for constructing enterprise infrastructure. 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 State capital. Banks shall process the conversion, enterprises shall record a reduction in bank loan debt, an increase in State budget capital, and implement payment for capital usage from the date of the loan-to-budget capital conversion order.

5. Type 10 enterprises have debts to the National Reserve.

Enterprise type 10 with debts owed to the State Reserve 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 enterprises of type 10 have debts that cannot be written off, the outstanding debt will be recorded as an increase in state capital granted to the enterprise (handled like a budget debt), reducing the debt owed to the State Reserve.

6. Enterprises of type 10 have receivables and payables with other economic sectors and socio-economic organizations.

6.1. Receivables: Enterprises of type 10 have receivables from other economic sectors and socio-economic organizations. These entities must find all sources to repay the principal debt to enterprises of type 10. If these entities intentionally fail to repay the debt, the enterprise shall report to the Debt Settlement Committee at various levels (the file includes as stipulated in Section II, point a) and apply coercive measures according to Circular Joint 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. For non-state-owned economic units and other economic organizations, after full collection if there is still a shortfall, enterprises of type 10 shall record it in their production and business results. The unpaid amount shall be documented and transferred to the local Tax Authority for continued collection and submission to the local budget.

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

7. Enterprises of type 10 with foreign debts:

Enterprises that borrow and repay foreign debts or purchase goods on deferred payment must secure funds to repay foreign debts in original currency. If unable to repay, the enterprise shall report the reasons to the Chairman of the People's Committee of the province or centrally-administered city (for local enterprises) or the relevant ministry or sector (for central enterprises) for review.

If the cause is objective, the provincial or municipal people's committee, ministry, or sector shall support repayment. If there is no source, they shall report to the Ministry of Finance for the Prime Minister's consideration and resolution.

If the cause is subjective, individual responsibility shall be pursued, all sources shall be exhausted, and the shortfall shall 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 debt cannot be repaid, the State shall assume the debt to repay on behalf of the foreign creditor.

b. Enterprises ceasing operations and being dissolved of type 80 with receivables and payables.

1. Receivables from:

Enterprises of type 10 shall not repay, and record it in their production and business results.

Enterprises of type 80: write off the debt.

Finance: considered a budget payment.

State Reserve: treated as a budget revenue.

Bank: the amount not to be repaid by the bank is the bank's revenue.

Collective economy, private economy, social organizations, and other entities: transfer to the Tax Authority for recovery and submission to the budget.

2. Payables to:

Enterprises of type 10 shall handle it as uncollectible receivables of enterprises (type 10) as stipulated in Section III, Part a, Point 2, Subpoint 2.1 above.

Enterprises of type 80: write off the debt.

Finance: write off the debt.

State Reserve: treated as budget revenue (write off the debt).

Banks may collect debts according to the asset disposal plan of the dissolved enterprise under Decisions 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 Government Prime Minister. - Collective economy, private economy, social organizations, and other entities: use the proceeds from the liquidation of assets to repay the debt; the shortfall shall be covered by the liquidation board or the management authority of the unit finding sources to repay the principal debt on behalf of the debtor. If there is no source, the agency responsible for establishing the dissolution shall report to the Ministry of Finance for the Prime Minister's decision.

The agency responsible for establishing and dissolving the enterprise shall be responsible for settling the foreign debt on behalf of the enterprise.

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

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

c. Handling of Bank Debts.

1. Payables:

1.1. For the State Bank, the payable debt of enterprises of type 10 and other entities shall be offset against the receivable amounts 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 debt of enterprises of type 10 and other entities shall be handled similarly to the payable debt of enterprises of type 10.

2. Receivables from:

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

The receivables of the Bank from enterprises of type 80 and types 20, 30, 40, 50, 90 that have been dissolved or ceased operations awaiting dissolution, or where private individuals have died or fled (no one to repay the debt) shall be handled according to the decision of the Prime Minister and the Governor of the State Bank. The receivables shall be written off according to the debt repayment plan of the dissolved enterprise under Decisions 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 not collected shall be handled according to Article 7 of Decision No. 95/1998/QĐ/TTg dated May 18, 1998 of the Government Prime Minister.

Enterprise category 80 shall collect surplus according to the debt repayment plan of the dissolved enterprise, applying 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). Circular No. 25/TC/TCDN dated May 15, 1997, of the Ministry of Finance guides the implementation of Decree No. 50/CP dated August 28, 1996, on the establishment, division, merger, and dissolution of state-owned enterprises. The uncollectible difference shall be implemented 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 according to Points 1-2 of Article 7 of Decision No. 95/1998/QĐ-TTg dated May 18, 1998, issued by the Prime Minister. The individual debts of debtors not yet 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 still in operation:

Debts receivable from enterprises of type 10:

For enterprises that have incurred losses for three consecutive years and are unable to rectify the situation, the Bank requests the Court to initiate bankruptcy proceedings against the enterprise in accordance with the Bankruptcy Law. After implementing the bankruptcy process in accordance with 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, issued by the Prime Minister.

For enterprises that are 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, issued by the 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 resolution so that the State Bank and the Ministry of Finance can review and decide on converting loan capital into local budget capital. The portion that cannot be converted into budget capital shall continue to be written off for the next three years.

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

In cases of intentional fraud, embezzlement, the Bank shall prepare files to transfer to legal authorities for handling.

For misuse of borrowed funds, 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, issued by the 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 Circular No. 03/1997/TTLT-NHNN-BTC dated November 22, 1997, issued by the Ministry of Finance and the State Bank guiding the handling of overdue debts of state-owned banks through post-audit bank operations. This requires the exhaustion of all sources from the violator, with the remainder being personally responsible (including leaders) to be handled according to the Law. Any remaining uncollected debt shall be deducted from the post-tax profit 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 may be reduced from the budget payments to the State Bank and Commercial Banks for salary and social insurance payments.

3. Debts arising from guarantees:

Loans provided to domestic units, guaranteed loans, and payments due but not made by the guarantor, the guaranteeing Bank must immediately pay the debt to the creditor and demand that the guarantor accept the debt obligation with the Bank.

Foreign and domestic loans designated by the State that have become due but the Bank has not yet 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 Prime Minister for separate decision.

Overdue debts of operating state-owned enterprises borrowed from Commercial Banks due to objective reasons and not yet written off, the Commercial Bank shall report to the provincial and municipal debt settlement committees, which will consolidate reports to the Ministry of Finance and the State Bank, and the Central Debt Settlement Committee for handling according to Points 1-2 of Article 9 of Decision No. 95/1998/QĐ-TTg dated May 18, 1998, issued by the Prime Minister.

Debts guaranteed by the supervisory agency, government level, or party committee: the guarantor must repay the debt on behalf of the unit, if unable to settle the debt, report the reasons to the Central Debt Settlement Committee for reporting to the Prime Minister for consideration and decision.

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

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

Debts receivable from Credit Cooperatives that borrowed before 1990 and have since been dissolved or self-dissolved.

Debts for phase I and II debt repayment (seed capital): including written-off and unwritten-off debts.

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

5. Debts guaranteed by Commercial Banks that have repaid on behalf of borrowing enterprises, and have not been able to recover the debt until now, the Banks shall report to the provincial and municipal debt settlement committees for classification and reporting to the Central Debt Settlement 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 to provide loans or guarantees for enterprises, after the Bank has repaid on behalf and exhausted all means to recover the debt, the remaining uncollectible amount shall be reported by the Commercial Bank to the State Bank and the Ministry of Finance for the Prime Minister's resolution.

d. Debts receivable and payable of the National Reserve.

Handle like budget debts, additionally note the following points:

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

2. The National Reserve's receivables from Category 80 enterprises, after realizing assets according to the liquidation plan to repay debts to creditors pursuant to 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. The Branch of the National Reserve shall report to the Local Debt Settlement Board and the National Reserve Bureau for the cancellation of the remaining debt.

3. The National Reserve's receivables 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 the National Reserve shall report to the Debt Settlement Boards at all levels (the file includes as prescribed in Section II, Point 1) to apply coercive measures pursuant 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 of other economic sectors to the National Reserve grain:

For units classified as Categories 20, 30, 40, 50, and 90 that have ceased operations and been dissolved, the agencies that established these units shall be responsible for repaying the debt if the debtor cannot repay it. The agency establishing 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 of 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 district or county office). The Branch of the National Reserve may transfer the debt to the People's Committee of the province or centrally-administered city for assignment to the investigation agency (police of the province or city) to continue investigating and recovering the amount to the local budget.

3.4. For debts of 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 pay back to 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 the National Reserve shall report to the Local Debt Settlement Board and the National Reserve Bureau with the following files:

Assistance to the people: the assistance 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, and confirmation by the People's Committee of the ward or commune and the District Financial Office.

Grain loans used to restore public works: a list of restored public works must be declared, 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. Debts of grain where the debtor has died must be confirmed by the People's Committee of the ward or commune that the deceased debtor had no heirs with assets to repay the debt. The Branch of the National Reserve shall prepare a file and report to the Local Debt Settlement Board to request cancellation of the debt.

3.6. Debts arising from advance money for purchasing grain or borrowing grain from the National Reserve during the years 1988-1990, where the unit has already paid the advance money or partially repaid in kind, and the remaining debt was fully repaid in cash before April 30, 1991, calculated based on the purchase price of grain at the time of borrowing, and there remains a debt, such debt will be allowed to be canceled. Payments made in cash and in kind prior to this Circular will not be recalculated.

4. The rice price 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 settled according to the authority of the Central Debt Settlement Steering Committee and report to the Ministry of Finance for a decision to reduce the reserve capital.

C. Implementation Organization:

1. Creditors, debtors, guarantors, and successors (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 remain unresolved in debt settlement, the agency deciding the establishment of enterprises, units, and other organizations shall consult with the state asset management agency at the enterprise and the local Debt Settlement Board to propose solutions to higher authorities. The agency deciding or authorized to establish enterprises shall be responsible for handling and settling debts of enterprises established by its own decisions.

Where there is disagreement among management agencies regarding 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 under their jurisdiction to promptly analyze, classify, and resolve debt settlement in Phase II as stipulated herein. Matters not covered in this Circular shall be handled according to current regulations.

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

All organizations and individuals who forge documents, take advantage of debt settlement to embezzle state assets for personal gain shall be dealt with according to current laws.

Monthly, Debt Settlement Boards at all levels shall report the results of debt settlement in Phase II to the Central Debt Settlement Steering Committee for submission to the Prime Minister for guidance.

4. This Circular takes effect 15 days after its date of issuance.

During the implementation process, if there are any issues or obstacles, localities, ministries, and sectors shall promptly report to the Ministry of Finance, the State Bank, and the Central Steering Committee for Comprehensive Debt Settlement for study and supplementation./.