Joint Circular No. 16/2000/TTLT-BLDTBXH-BTC-BKHDT guiding amendments and supplements to certain points in Circular No. 08/1999/TTLT-BLDTBXH-BTC-BKHDT dated March 15, 1999 on guidance for handling projects borrowing from the National Employment Support Fund (National Employment Fund) that are at risk.

CIRCULAR

JOINT CIRCULAR OF THE MINISTRY OF LABOR, INVALIDS AND SOCIAL AFFAIRS - MINISTRY OF FINANCE - MINISTRY OF PLANNING AND INVESTMENT NO. 16/2000/TT-LT-BLDTBXH-BTC-BKHĐT, JULY 5, 2000
GUIDELINES FOR AMENDING AND SUPPLEMENTING CERTAIN POINTS IN JOINT CIRCULAR NO. 08/1999/TT-LT-BLDTBXH-BTC-BKHĐT, MARCH 15, 1999 ON GUIDELINES FOR HANDLING PROJECTS WITH LOANS FROM THE NATIONAL EMPLOYMENT SUPPORT FUND (NATIONAL EMPLOYMENT RESOLUTION FUND) THAT ARE AT RISK
Pursuant to Decision No. 126/1998/QĐ-TTg dated July 11, 1998 of the Prime Minister approving the National Target Program on Employment until 2000, the Joint Ministries of Labor, Invalids and Social Affairs, Finance, and Planning and Investment issued Circular No. 08/1999/TT-LT-BLDTBXH-BTC-BKHĐT dated March 15, 1999 on guidelines for handling projects with loans from the National Employment Support Fund (National Employment Resolution Fund) that are at risk;

To facilitate the handling of projects at risk and simplify procedures, the Joint Ministries of Labor, Invalids and Social Affairs, Finance, and Planning and Investment hereby issue guidelines for amending and supplementing certain points in Joint Circular No. 08/1999/TT-LT-BLDTBXH-BTC-BKHĐT dated March 15, 1999 on guidelines for handling projects with loans from the National Employment Support Fund (National Employment Resolution Fund) that are at risk as follows:

I. AMENDMENTS AND SUPPLEMENTS:

1. Amend Point 3, Section I as follows:

"3. Authority to handle risky projects: The Joint Ministries authorize the Chairperson of the People's Committee of provinces and centrally governed cities (hereinafter referred to as the province); Ministers of Ministries; Heads of central agencies of organizations, mass associations to decide on reducing, exempting interest, or suspending debt. The Minister of Labor, Invalids and Social Affairs shall consider and decide to write off debts for risky projects based on the proposals of the Chairperson of the People's Committee of the province, Ministers of Ministries, Heads of central agencies of organizations, mass associations, after obtaining the opinions of the Minister of Finance and the Minister of Planning and Investment."

2. Amend Point 1, Section II as follows:

"1. Objectives and scope of application:

- Projects using loan funds for approved purposes that have suffered losses due to objective reasons beyond the control of the borrower (referred to as force majeure), including: natural disasters (earthquakes, typhoons, floods, droughts); fires; epidemics;

- Borrowers who are frequently ill; suffer from mental illness; have particularly difficult circumstances without support; die, go missing without heirs, or where heirs truly lack the ability to repay the debt on behalf of the borrower;

- Borrowers whose collateral assets are damaged during the liquidation process due to force majeure or depreciation due to market price fluctuations, thus not being sufficient to cover the debt."

3. Amend Subparagraph c, Point 2, Section II as follows:

"c. Debt write-off: For projects where borrowers have suffered total loss of assets; significant loss of assets and truly lack the ability to repay the debt; borrowers who have died or gone missing but have no heirs or where heirs lack the ability to repay the debt on behalf of the borrower, may be considered for partial or full write-off of the loan principal."

4. Amend the second bullet point under Subparagraph c, Point 4, Section II as follows:

" - The Chairperson of the Provincial People's Committee examines and evaluates and makes a decision to suspend debt during the waiting period for a write-off decision, and simultaneously sends a letter requesting write-off (accompanied by Form 3c and legal documentation of the applicant seeking write-off according to Circular No. 08/1999/TT-LT) to the Ministry of Labor, Invalids and Social Affairs for consideration and resolution."

5. Amend Subparagraph e, Point 4, Section II as follows:

"e. For the Joint Ministries of Labor, Invalids and Social Affairs, Finance, Planning and Investment, and State Treasury at all levels:

- The Office of the National Program on Employment takes the lead in coordinating with relevant units to review applications, compile lists of projects proposed for write-off. After receiving written opinions from the Minister of Finance and the Minister of Planning and Investment, the Minister of Labor, Invalids and Social Affairs issues a decision to write off debts in accordance with Point 1, Section I of this Circular.

- The Central State Treasury bases its procedures to transfer funds from the risk reserve fund to the provincial State Treasury to offset the amount of written-off debt, guiding State Treasuries at all levels to complete the write-off procedures.

- The provincial State Treasury and county State Treasury base their decisions to reduce, exempt interest, suspend debt, or write off debt for each borrower and compile results to send to the Central State Treasury."

6. Supplement Point 5 to Section II as follows:

"5. New loans to address the consequences of risks:

Borrowers who have had their debts suspended or written off and who have a need for new loans to restore production and create employment may be considered for new loans within the available local funding sources. The procedures, conditions, amounts, terms, and interest rates for such loans shall be carried out in accordance with current regulations on lending from the National Employment Support Fund."

1. The People's Committees of provinces, Ministries, and central agencies of organizations, mass associations shall instruct competent agencies under their jurisdiction to strengthen inspections and supervision of project implementation, conduct reviews, and handle projects at risk in accordance with the provisions of this Circular; For those who do not qualify for debt suspension or write-off and deliberately delay repayment, they should be dealt with according to the law as if they were illegally occupying state property.

II. IMPLEMENTATION:

1. The People's Committee of the province, Ministries, Central Agencies, organizations, mass associations shall direct competent agencies under their authority to strengthen inspection and supervision of the implementation of projects, organize reviews and handle projects at risk in accordance with the provisions of this Circular; As for entities not within the scope eligible for debt deferral or write-off who intentionally delay or evade repayment, they must be dealt with according to the law as if they were engaging in the illegal appropriation of state assets.

This Circular takes effect fifteen days from the date of signature; For subjects at risk before April 1, 1999, where handling is difficult due to the inability to establish verification records of risks, if the borrower submits a request confirmed by local authorities, the Department of Labor, Invalids, and Social Affairs shall coordinate with the State Treasury to compile and report the reasons clearly for the Chairman of the Provincial People's Committee to consider and decide, or issue a confirmation letter regarding the subjects at risk to the Ministers of relevant Ministries, Heads of central agencies, and associations and mass organizations for consideration and decision. In special cases, the People's Committees of provinces, Ministries, Central Agencies, associations, and mass organizations shall send letters to the Joint Ministry for consideration and resolution of each specific case.

During implementation, if there are any difficulties, they should be promptly reported to the Joint Ministry, Ministry of Labor, Invalids, and Social Affairs - Ministry of Finance - Ministry of Planning and Investment for study and resolution./.