Decision No. 144/2002/QĐ-TTg On certain measures to handle debts from loans for repairing, building new fishing vessels, and purchasing fishing gear from preferential credit sources according to Decision No. 985/TTg dated November 20, 1997 of the Prime Minister.

DECISION OF THE PRIME MINISTER

On certain measures to handle debts from loans for repairing, building new fishing vessels, and purchasing fishing gear from preferential credit sources pursuant to Decision No. 985/TTg dated November 20, 1997 of the Prime Minister.

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Decision No. 985/TTg dated November 20, 1997 of the Prime Minister on addressing the aftermath of Typhoon No. 5, restoring and developing production in coastal provinces in Southern Vietnam and Central Vietnam ;

Considering the proposal of the Ministry of Fisheries and the Governor of the State Bank of Vietnam (document No. 2029/TS-NHNN dated August 2, 2002); opinions of the Ministries of Finance (document No. 9194/TC/TCNH dated August 21, 2002), Planning and Investment (document No. 5649-BKH/NN dated September 4, 2002), Ministry of Science and Technology Adjusting the interest rate on loans and loan terms for organizations and individuals borrowing funds for repairing, building new fishing vessels, and purchasing fishing gear from preferential credit sources as stipulated in Article 6 of Decision No. 985/TTg dated November 20, 1997 of the Prime Minister on addressing the aftermath of Typhoon No. 5, restoring and developing production in coastal provinces in Southern Vietnam and Central Vietnam as follows:

DECISION:

Article 1. 1. Applying an interest rate of 5.4% per annum on the outstanding balance of medium-term loans up to December 31, 2002.

The State Bank of Vietnam will reduce the interest rate on refinancing loans provided to state-owned commercial banks to 0% per month for the portion funded by the state budget (50%), with the remaining portion to be arranged by the commercial banks themselves to address the issue.

2. The repayment period for borrowed capital shall not exceed twelve years, calculated from the date of borrowing.

Assigning the People's Committees of the provinces: Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Binh Thuan, Ba Ria-Vung Tau, Ho Chi Minh City, Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau, Kien Giang to take the lead and coordinate with the State Bank of Vietnam to organize and direct the handling of loan debts according to the following directions:

Article 2. 1. Classifying debtors to implement specific measures:

a) For households engaged in production and business that are effective and able to repay their debts, if they have a need for additional loans, commercial banks shall consider providing further loans in accordance with current regulations on commercial lending.

b) For households that have the ability to repay their debts but deliberately delay repayment, no extension or deferral of repayment shall be granted, and efforts to recover the debt shall be strictly enforced in accordance with the law.

c) For households that have misused the borrowed funds: inspect and record assets formed from the borrowed funds, transfer the remaining outstanding balance to commercial lending and recover the debt in accordance with current regulations.

d) For households engaged in production and business that are losing money and facing difficulties in living:

Households with skills and the ability to organize production and business, but due to objective reasons or lack of capital, unable to repay their debts on time, shall be considered for extension, deferral, and redefinition of the repayment period, or if there is an effective production and business plan, they may be considered for further loans (at the current commercial lending interest rate) to ensure recovery of the principal and interest.

Households encountering unforeseeable risks such as ship sinking, disappearance due to natural disasters, or being seized by foreign entities without the ability to repay their debts, the provincial People's Committee shall prepare files to send to the State Bank of Vietnam for consolidation and recommendation of common handling measures, and report to the Government.

2. Regarding the transfer of ship ownership and loan debts:

b) The new ship owner shall sign a loan contract with the bank for the amount of the ship's value reassessed at market price at the time of transfer, enjoying the interest rate on loans as stipulated in this Decision and exempted from paying taxes on the newly acquired asset.

c) The old ship owner shall continue to bear the debt with the bank for the difference between the outstanding balance and the ship's value at the time of transfer. If the old ship owner is unable to repay this portion of the debt, it shall be handled in accordance with point d, Clause 1, Article 2.

1. The Ministry of Finance shall guide the exemption and reduction of taxes for borrowers affected by Typhoon No. 5 in accordance with Decision No. 172/2001/QĐ-TTg dated November 5, 2001 of the Prime Minister on handling deferred, frozen, and waived tax debts and other payments to the state budget for enterprises and production units facing difficulties due to objective reasons.

Article 3. Implementation organization:

2. The State Bank of Vietnam shall instruct commercial banks to specify the loan term for each individual borrower; provide detailed guidance on transferring ship ownership; consolidate, review, and recommend measures to handle uncollectible debts and report the results to the Prime Minister.3. The Ministry of Fisheries shall strengthen fishery promotion work, vocational training for fishermen in fishing and aquaculture; guide localities to build models linking production with product sales through contracts; guide fishermen about fishing grounds and resources to ensure effective production.

4. The People's Committees of the provinces shall coordinate with the State Bank of Vietnam, the Ministry of Finance, and the Ministry of Fisheries: direct the classification of borrowers to implement appropriate measures ensuring fairness and reasonableness; enhance propaganda and education to raise fishermen's awareness of their obligations under loan agreements; resolutely enforce the law against those who intentionally evade their state debt repayment obligations.The Ministers of the Ministries of Finance, Planning and Investment, Fisheries; the Governor of the State Bank of Vietnam, and the Chairmen of the People's Committees of the provinces: Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Binh Thuan, Ba Ria-Vung Tau, Ho Chi Minh City, Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau, Kien Giang are responsible for implementing this Decision./.

3. The Fisheries Department strengthens fishery promotion activities, vocational training for fishermen in fishing and aquaculture; guides localities in building models linking production with product consumption through contracts; advises fishermen on fishing grounds and resources to ensure effective production.

4. Provincial People's Committees coordinate with the State Bank of Vietnam, the Ministry of Finance, and the Ministry of Fisheries: direct the classification of borrowing entities to implement appropriate measures ensuring fairness and reasonableness; enhance propaganda and education for fishermen to raise their awareness of their obligations under loan contracts; resolutely handle according to the law cases where individuals deliberately evade their state debt repayment obligations.

Article 4. This Decision takes effect fifteen days after the date of signature.

Article 5. The Ministers of Finance, Planning and Investment, Fisheries; Governor of the State Bank of Vietnam and Chairpersons of the People's Committees of the provinces: Quang Ngai, Binh Dinh, Phu Yen, Khanh Hoa, Binh Thuan, Ba Ria - Vung Tau, Ho Chi Minh City, Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Bac Lieu, Ca Mau, Kien Giang are responsible for implementing this Decision./.