Circular No. 11/2003/TT-BTC guiding the transfer of tasks for providing loans to solve employment issues according to Resolution No. 120/HÐBT dated April 11, 1992 of the Council of Ministers (now the Government) from the State Treasury to the Social Policy Bank.

CIRCULAR

Guidelines for transferring the task of providing loans to solve employment issues according to Resolution No. 120/HĐBT dated April 11, 1992 of the Council of Ministers (now the Government) from the State Treasury to the Vietnam Bank for Social Policies

From the State Treasury to the Vietnam Bank for Social Policies

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

Based on Decision No. 131/2002/QĐ-TTg dated October 4, 2002 of the Prime Minister on the establishment of the Vietnam Bank for Social Policies;

After reaching consensus with the Ministry of Labor, Invalids and Social Affairs, the Ministry of Planning and Investment, and the Vietnam Bank for Social Policies, the Ministry of Finance provides guidelines for transferring the task of providing loans to solve employment issues from the State Treasury to the Vietnam Bank for Social Policies as follows:

I. GENERAL PROVISIONS

1. Scope of transfer: includes all sources of funds for providing loans to solve employment issues according to Resolution No. 120/HĐBT dated April 11, 1992 of the Council of Ministers (now the Government), which originate from the central budget, outstanding loan balances along with loan project files held by the State Treasury. Working tools and other assets of the State Treasury serving the work of providing loans to solve employment issues are not within the scope of transfer under this Circular.

2. Transfer date: begins on April 1, 2003 and must be completed before June 30, 2003.

For State Treasuries assigned the task of managing funds originating from local budgets that are currently providing loans for specific targets designated by local authorities such as job creation, poverty alleviation, etc., shall continue to provide loans according to current regulations. The time for transferring the task of providing loans for these funds to the Vietnam Bank for Social Policies shall be decided by the Chairman of the People's Committee of provinces and centrally-administered cities in accordance with Clause 5, Article 25 of the Government Decree No. 78/2002/NĐ-CP dated October 4, 2002 on credit for the poor and other policy beneficiaries.

3. As of March 1, 2003, the People's Committees of provinces and centrally-administered cities; People's Committees of districts (if authorized by the People's Committees of provinces and centrally-administered cities); central agencies of mass organizations, people's associations, and the Ministry of Defense will cease issuing decisions to approve loans; decisions to reduce, exempt interest, or write off debts for projects affected by force majeure. At the same time, they will stop reviewing loan applications through the State Treasury and stop submitting debt write-off application files to the Ministry of Labor, Invalids and Social Affairs.

For new supplementary funding allocated to the National Employment Support Fund included in the state budget annually, starting from 2003, the Ministry of Finance will transfer it to the Vietnam Bank for Social Policies in accordance with Article 23 of the Government Decree No. 78/2002/NĐ-CP dated October 4, 2002.

4. To ensure the smooth transfer, as of April 1, 2003, the State Treasury system will cease providing loans, collecting debts, extending debt terms, reducing or exempting interest, writing off debts, or canceling debts for projects. Simultaneously, they will conduct an inventory of loan funds and outstanding debts to transfer to the Vietnam Bank for Social Policies.

II. SPECIFIC PROVISIONS

1. Preparation work before transfer: Based on the loan funds and debt collections for projects implemented in their respective areas (including projects approved for loans by central agencies of mass organizations, people's associations, and the Ministry of Defense), State Treasuries will conduct an inventory, reconcile, assess loan debts, and compile lists of borrowers according to the guidance of the Central State Treasury.

For projects that have been approved for loans by competent authorities, the State Treasury will notify project leaders to promptly complete loan procedures to ensure there are no approved but unissued loans during the transfer period. By the end of March 31, 2003, if loans have not been issued, the State Treasury will transfer the responsibility of continuing to issue loans to the Vietnam Bank for Social Policies in accordance with current regulations regarding loans from the National Employment Support Fund.

For projects due to repay debts or still within the repayment period, the State Treasury will urge borrowers to fully repay their debts by March 31, 2003; after this date, State Treasuries will not collect debts from these projects.

2. Contents of transfer:

- All loan funds, including: total received funds, funds already lent out, and funds yet to be lent out.

- All outstanding loan balances, including: on-time debts, overdue debts, and debts written off for the Vietnam Bank for Social Policies to continue monitoring and managing.

- Original project files with outstanding loan balances or unissued loans up to the transfer date, including: loan project details; approval decisions by competent authorities; loan contracts; collateral, pledge, or guarantee contracts (if any); other necessary documents as required.

3. Method of transfer: The State Treasury of provinces and centrally-administered cities will lead the transfer process between parties, prepare a handover record signed by the branch of the Vietnam Bank for Social Policies. Handover data recorded in the handover record, signed by all parties, will serve as the basis for recording, reflecting, and reconciling accounting records.

4. For projects facing force majeure risks arising up to the transfer date but not yet resolved, the State Treasury will compile and transfer them to the Vietnam Bank for Social Policies for handling according to the Vietnam Bank for Social Policies' regulations.

5. For interest collected up to the transfer date, State Treasuries at all levels are responsible for compiling reports to competent authorities to decide on distribution to benefiting units according to current regulations. Units are responsible for spending and settling accounts in accordance with Decision No. 97/2001/QĐ-BTC dated October 2, 2001 of the Minister of Finance.

6. For the central risk reserve fund, the Central State Treasury is responsible for compiling and reporting final accounts according to current regulations; the remaining balance will be transferred to the Vietnam Bank for Social Policies for continued risk management according to the Vietnam Bank for Social Policies' regulations.

III. IMPLEMENTATION

This Circular takes effect fifteen days after its publication in the Official Gazette.

The Central State Treasury and the Vietnam Bank for Social Policies are responsible for guiding and directing subordinate systems to implement the transfer accurately and within the specified timeframe, while also compiling and reporting the results to the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the Ministry of Planning and Investment.

In the course of the handover, if there are any difficulties, it is requested that localities and units promptly reflect them to the Ministry of Finance for resolution.