Circular No. 105/2004/TT-BTC guiding the expense regime for debt recovery in the liquidation of People's Credit Funds that have had their operating licenses revoked or are undergoing liquidation dissolution.

CIRCULAR

Guidelines on expense reimbursement for debt recovery in the liquidation of People's Credit Funds whose licenses have been revoked
or are undergoing liquidation dissolution
activities or being liquidated for dissolution

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 166/1999/NĐ-CP dated November 19, 1999 of the Government on financial regulations for credit organizations;

Pursuant to Decree No. 48/2001/NĐ-CP dated August 13, 2001 of the Government on the organization and operation of People's Credit Funds;

In order to fully recover overdue debts that are difficult to collect from People's Credit Funds whose licenses have been revoked or are undergoing liquidation dissolution, thereby minimizing losses for the State, the Ministry of Finance hereby issues guidelines on expense reimbursement for debt recovery in the liquidation of People's Credit Funds as follows:

I. APPLICABLE OBJECTS:

The Circular applies to People's Credit Funds whose licenses have been revoked or are undergoing liquidation dissolution. This Circular does not apply in cases where People's Credit Funds are revoked due to mergers, divisions, and consolidations.

II. SCOPE OF APPLICATION:

Overdue debts that are difficult to collect, recovered by the Liquidation Council after the State Bank issues a decision to revoke the operating license or after the provincial/municipal People's Committee issues a notice to commence liquidation dissolution of the People's Credit Fund.

III. PRINCIPLES AND EXPENSE REGULATIONS FOR DEBT RECOVERY:

For overdue debts that are difficult to collect, recovered by the Liquidation Council, up to 10% may be retained, but not exceeding 10 million VND, to cover expenses for organizations with legal personality and members of the Liquidation Council who have made positive contributions to debt recovery according to the following principles:

- Allocate 70% of the retained amount to organizations with legal personality that have contributed to the recovery of overdue debts that are difficult to collect. The Liquidation Council shall decide and bear responsibility for the level of expenditure for each organization based on their degree of contribution to the recovery of overdue debts that are difficult to collect.

- As for the remaining 30% of the retained amount, the Liquidation Council shall allocate it based on the degree of contribution of its members in a suitable manner.

All expenditures mentioned above must be supported by valid vouchers.

IV. IMPLEMENTATION PROVISIONS:

This Circular takes effect 15 days from the date of publication in the Official Gazette.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for study and resolution.