Decision No. 15/2008/QĐ-TTg Amending and Supplementing Certain Provisions of Decision No. 71/2005/QĐ-TTg dated April 5, 2005 of the Government on the Management and Operation Mechanism for Loans from the National Employment Fund.

Pursuant to …;

Amending and supplementing some articles of Decision No. 71/2005/QĐ-TTg dated April 5, 2005 of the Prime Minister on the management and operation mechanism of the capital for loans of the National Employment Fund

Amending and supplementing some articles of Decision No. 71/2005/QĐ-TTg dated April 5, 2005 of the Prime Minister on the management and operation mechanism of the capital for loans of the National Employment Fund as follows:

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PRIME MINISTER

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

Basis: Decree No. 39/2003/NĐ-CP dated April 18, 2003 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on employment.

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

Considering the proposal of the Minister of Labor, Invalids, and Social Affairs,

DECISION:

Article 1. Amending and supplementing some articles of Decision No. 71/2005/QĐ-TTg dated April 5, 2005 of the Prime Minister on the management and operation mechanism of the capital for loans of the National Employment Fund as follows:

1. Amend and supplement Article 6 as follows:

"Article 6. Conditions for borrowing capital:

1. For the subjects mentioned in Clause 1, Article 5:

a) Must have a feasible loan project consistent with the industry or business, creating new jobs, and attracting additional stable labor;

b) The project must be confirmed by the local authority or the agency implementing the local program where the project is carried out;

c) For projects with a loan amount exceeding 20 million VND, there must be collateral or pledge according to current regulations or guarantee the loan according to the guidance of the Management Board of the Social Policy Bank.

2. For the loan subjects mentioned in Clause 2, Article 5:

a) Must ensure the creation of at least one new job;

b) The project must be confirmed by the local authority or the agency implementing the local program where the project is carried out."

2. Amending and supplementing Point a, Clause 1, Article 8 as follows:

"Article 8. Loan amount, term, and interest rate

1. Loan amount:

a) For the subjects mentioned in Clause 1, Article 5, the maximum loan amount shall not exceed 500 million VND/project and not more than 20 million VND/new job."

3. Amend and supplement Article 9 as follows:

"Article 9. Building, evaluating, and approving projects.

1. Building projects:

Subjects borrowing capital as stipulated in Article 5, when having a need for capital, must build projects and prepare loan application files according to the guidelines of the Social Policy Bank at the local level.

2. Evaluating projects:

The Social Policy Bank at the local level is responsible for organizing the evaluation to ensure the targets regarding the creation of new jobs and the preservation of capital, and submitting to the competent authority for approval of the project.

3. Approval authority for projects:

a) The Chairman of the People's Committee of provinces and centrally-administered cities and the heads of central agencies implementing the Program issue decisions to approve loan projects from the Fund;

b) The People's Committees of provinces and centrally-administered cities and central agencies implementing the Program delegate authority to lower-level agencies to issue decisions to approve loan projects according to the guidelines of the Ministry of Labor - Invalids and Social Affairs, the Ministry of Finance, and the Ministry of Planning and Investment, ensuring promptness and convenience for loan applicants.

The Ministry of Labor - Invalids and Social Affairs, in conjunction with the Ministry of Finance and the Ministry of Planning and Investment (hereinafter referred to as the Joint Ministries), is responsible for specifying the procedures for building projects, evaluating, and delegating approval authority for projects; clearly defining the deadlines for authorities to complete their tasks and respond to loan applicants."

4. Amend and supplement Article 11 as follows:

"Article 11. Recovery and utilization of recovered capital

1. The Social Policy Bank at the local level develops plans for debt recovery, proceeds with the recovery of both principal and interest when due; borrowers may repay the principal ahead of schedule. During the lending process, if the Social Policy Bank at the local level discovers that the borrower is using the loan funds for purposes other than intended, it reports to the project approval authority to issue a decision to recover the debt prematurely.

2. The Social Policy Bank uses recovered capital to lend to approved projects, avoiding idle capital.

3. In cases where it is necessary to adjust the source of loan capital between regions or central agencies implementing the Program or to recover it to the central level, the Social Policy Bank reports to the Ministry of Labor - Invalids and Social Affairs for a decision on handling. The Social Policy Bank is responsible for transferring capital according to the decision of the Ministry of Labor - Invalids and Social Affairs.

4. Extension of debt: for projects that have reached the repayment deadline but due to objective financial difficulties, the borrower is unable to repay and requests an extension, they must submit a detailed explanation of the reasons and measures to address them to the local Social Policy Bank. Based on the request for debt extension, the local Social Policy Bank reviews and resolves the extension. After extending the debt, the local Social Policy Bank is responsible for reporting the results to the Labor - Invalids and Social Affairs agency and the implementing agency at the same level for consolidation and reporting to the Joint Ministries."

5. Amend and supplement Article 12 as follows:

"Article 12. Handling overdue debts

1. Overdue debts not caused by force majeure and not eligible for extension, the borrower must fully repay both principal and interest to the Social Policy Bank. If, three months after the overdue debt is transferred, the borrower has been urged to repay but still fails to do so, the Social Policy Bank transfers the loan file to the competent state authority for resolution.

2. For projects facing risks due to force majeure, they are implemented according to Decision No. 69/2005/QĐ-TTg dated April 4, 2005 of the Prime Minister on the Regulations for Handling Risks of the Social Policy Bank and Circular No. 65/2005/TT-BTC dated August 16, 2005 of the Ministry of Finance on guiding the implementation of the Regulations for Handling Risks of the Social Policy Bank."

6. Amend and supplement Article 13 as follows:

"Article 13. Administrative management costs of the employment loan fund of state management agencies at all levels are allocated within the annual administrative management budget according to the current budget classification. The Ministry of Finance provides specific guidelines on items and standards for cost allocation as a basis for agencies to prepare and review budgets."

7. Amend and supplement Article 14 as follows:

"Article 14. Activities coordinated with the Social Policy Bank during the implementation process from project development, preparation of loan application files, coordination in evaluation, disbursement, and recovery of capital by relevant agencies are entitled to fees paid by the Social Policy Bank according to the guidelines of the Ministry of Finance."

8. Amending Article 18 as follows:

"Article 18. Central agencies implementing the Program

1. Develop annual and five-year employment resolution plans and plans for the use of the Fund; organize implementation, management, and regulation of the Fund's capital assigned by the Government.

2. Direct subordinate agencies to implement the lending mechanism and policies from the Fund correctly; inspect and evaluate the implementation situation and results; report quarterly, semi-annually, and annually as prescribed by the Inter-Ministerial Agency.

9. Amend and supplement Article 19 as follows:

"Article 19. The Social Policy Bank

1. Direct local branches of the Social Policy Bank to organize and guide borrowers to develop project plans and prepare loan application files for review and approval by competent authorities.

2. Guide procedures and processes for disbursing funds, recovering capital, and handling debts strictly and simply to avoid inconvenience for borrowers. Monitor the use of borrowed funds by customers.

3. Report monthly, quarterly, semi-annually, and annually on the implementation and results of lending from the Fund according to the regulations of the Inter-Ministerial Agency.

4. Guide the guarantee of loans for projects aimed at job creation.

10. Sửa đổi, bổ sung Điều 20 như sau:

"Article 20. People's Committees of provinces and centrally governed cities

1. Develop annual and five-year employment resolution plans and plans for using the Fund; organize implementation, management, and regulation of the Fund assigned by the Government; direct relevant agencies to guide the development of loan projects in accordance with regulations; decide on project approval and delegate approval authority; and be responsible for the effectiveness, new employment targets, and preservation of capital for projects funded by the National Employment Fund.

2. Direct relevant agencies, implementing programs, and local branches of the Social Policy Bank to properly implement the lending mechanisms and policies from the Fund; inspect and evaluate the implementation situation and results; report quarterly, semi-annually, and annually as prescribed by the Inter-Ministerial Agency.

3. Direct local labor agencies to develop annual loan disbursement plans and employment resolution plans, inspect, supervise, and evaluate new employment targets and loan activities.

11. Amend and supplement Article 21 as follows:

Article 21. This Decision takes effect fifteen days after its publication in the Official Gazette and revokes Circular Joint Circular No. 08/1999/TT-LT dated March 15, 1999, Circular Joint Circular No. 16/2000/TT-LT dated July 5, 2000, and Circular Joint Circular No. 06/2002/TT-LT dated April 10, 2002 issued by the Ministry of Labor, Invalids and Social Affairs, the Ministry of Finance, and the Ministry of Planning and Investment, and Decision No. 97/2001/QĐ-BTC dated October 2, 2001 issued by the Ministry of Finance regarding the issuance of the Regulation on the Distribution and Use of Interest from Loans from the National Employment Support Fund.

Article 2. This Decision takes effect fifteen days after its publication in the Official Gazette.

Article 3. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Heads of central capital management agencies, Chairpersons of People's Committees of provinces and centrally governed cities, and Chairpersons of the Board of Directors of the Social Policy Bank are responsible for implementing this Decision./.