Decree No. 206/2013/NĐ-CP on the management of debt of state-owned enterprises holding 100% of charter capital

 

DECREE

On managing debts of enterprises wholly owned by the State

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

Pursuant to the Enterprise Law dated November 29, 2005;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on managing debts of enterprises wholly owned by the State,

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the management of debts and the handling of outstanding debts of enterprises wholly owned by the State.

Article 2. Applicability

1. The subjects to which this Decree applies include:

a) Joint-stock companies with sole members wholly owned by the State established by the Prime Minister's Decision or by Ministries, ministerial-level agencies, and governmental agencies (hereinafter collectively referred to as the Sectoral Management Ministry) or by People's Committees of provinces and centrally-administered cities (hereinafter collectively referred to as Provincial People's Committees), including:

- Joint-stock companies with sole members that are parent companies of economic groups; parent companies of state-owned corporations; parent companies in the parent company - subsidiary model.

- Independent joint-stock companies with sole members.

b) Authorized representatives at enterprises wholly owned by the State and authorized representatives for the state capital portion in enterprises.

c) Agencies, organizations, and individuals related to the management and handling of debts of enterprises.

2. Enterprises wholly owned by the State operating in sectors with specific financial characteristics shall comply with the provisions of laws applicable to such sectors.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

1. "Enterprise" means a joint-stock company with sole members wholly owned by the State as specified in Point a Clause 1 Article 2 of this Decree.

2. "Outstanding debt" refers to receivables overdue for payment, where the enterprise has taken measures such as reconciliation and urging payment but still cannot recover, and payables overdue for payment but the enterprise does not have the ability to repay.

3. "Difficult-to-collect receivable" refers to receivables overdue for payment exceeding six months (calculated from the original payment deadline, excluding extended payment periods), where the enterprise has taken measures such as reconciliation and urging payment but still cannot recover; or receivables not yet due for payment but the debtor is an economic organization in bankruptcy, dissolution proceedings, the debtor is missing, absconding, under prosecution, detention, trial, serving a sentence, or deceased.

4. "Unrecoverable receivable" refers to receivables overdue for payment or not yet due for payment falling under any of the following circumstances:

a) The debtor is an enterprise or organization that has completed the dissolution or bankruptcy process according to the law.

b) The debtor is an enterprise or organization that has ceased operations and lacks the ability to pay, with no successor to assume the obligation to repay.

c) The debtor is an individual who has died, gone missing, is alive but unable to work or lacks civil capacity, or the heir according to law but lacks the ability to pay.

d) The debtor has been decided by the competent authority to have their debt canceled according to the law.

đ) The remaining difference of unrecoverable receivables after holding individuals and collectives responsible for material compensation.

e) Receivables overdue for payment for one year or more, although the debtor still exists and operates, but has continuously incurred losses for three years or more and is extremely difficult, completely unable to pay, and despite the enterprise's active application of measures, it still cannot recover the debt.

5. "Unable-to-pay debt" refers to receivables and overdues that the enterprise cannot repay to creditors according to the terms agreed upon in the contract.

6. "Authorized representative for the state capital portion in the enterprise" means an individual authorized in writing by the owner to exercise the rights, responsibilities, and obligations of the owner in the enterprise (hereinafter referred to as the Representative).

Article 4. Principles for managing and handling debts

1. Enterprises shall be responsible for establishing and promulgating Debt Management Regulations (including receivables and payables); clearly defining the responsibilities of collectives and individuals (Board of Members, Chairman of the Board of Members (Company Chairman), General Director (Director), Chief Accountant, other related individuals) in monitoring, recovering, and settling debts; reconciling and confirming debts, classifying debts, urging recovery, and proactively handling outstanding debts in accordance with this Decree.

2. For difficult-to-collect debts or debts without the ability to repay, enterprises must first establish provisions according to regulations and take all measures to handle and recover debts, sharing difficulties between creditors and debtors through methods such as writing off debts, deferring payments, forgiving debts, and buying and selling debts; in cases exceeding their capacity and authority, enterprises must report to competent authorities to seek support for resolution.

3. For foreign currency receivables and payables, enterprises shall convert them into Vietnamese Dong at the time of accounting and prepare financial statements in accordance with current laws. Exchange rate differences arising during the period and revaluation exchange rate differences of foreign currency receivables and payables at year-end shall be handled in accordance with the regulations of the Ministry of Finance.

4. Enterprises currently undergoing conversion procedures shall immediately handle outstanding debts in accordance with current State regulations on converting wholly state-owned enterprises.

5. Debt management solutions must be implemented in a coordinated manner based on organizing restructuring and improving enterprise efficiency to generate funds for repayment, thereby stabilizing and maintaining long-term financial health of the enterprise according to the principle that enterprises borrow, repay, and bear responsibility for their own debts.

6. Every six months and at the end of the fiscal year, along with preparing and submitting financial reports and supervisory reports, enterprises shall be responsible for reporting to shareholders on the management and recovery of debts, handling of outstanding debts, and the ability and situation of debt settlement in accordance with this Decree.

Chapter II
MANAGEMENT AND HANDLING OF RECEIVABLES
OF THE ENTERPRISE

Section 1
MANAGEMENT OF ENTERPRISE RECEIVABLES

Article 5. Responsibilities of enterprises in managing receivables

1. Issuing and implementing Debt Management Regulations of the enterprise in accordance with Clause 1, Article 4 of this Decree, clearly defining the responsibilities of collectives and individuals in monitoring and recovering receivables.

2. Maintaining ledgers for tracking receivables by debtor; regularly classifying receivables (receivables not yet due, receivables due, receivables overdue, difficult-to-collect receivables, unrecoverable receivables), urging recovery of receivables; periodically reconciling accounts.

3. The Board of Members, Chairman of the Board of Members (Company Chairman), General Director (Director) of the enterprise shall be responsible for promptly handling difficult-to-collect receivables and unrecoverable receivables. If unrecoverable receivables are not promptly handled as prescribed, resulting in more than one written reminder from shareholders and affecting the financial situation and business results of the enterprise, the shareholders may decide on disciplinary actions against the Chairman of the Board of Members, the Board of Members, the Company Chairman, the General Director, or the Director according to the law; if failure to handle leads to loss of shareholder capital, they must compensate for losses with personal assets and bear responsibility before the shareholders and the law.

4. When determining receivables as difficult-to-collect, the enterprise must establish provisions for difficult-to-collect receivables in accordance with the regulations of the Ministry of Finance.

5. Unrecoverable receivables, the enterprise must clearly identify the objective or subjective causes. For subjective causes, the enterprise has the responsibility to handle compensation from related individuals or collectives. For objective causes, the Board of Members, the Management Board of the enterprise, and related departments must clearly identify the cause and issue a confirmation record; if these receivables are related to business operations, the enterprise can offset them with provisions for difficult-to-collect receivables; if there is still a shortfall, it shall be recorded as business expenses of the enterprise.

6. After handling unrecoverable receivables according to Clause 5 of this Article, the enterprise must continue to track them outside the balance sheet and in the explanatory notes of the financial report for a minimum of ten years from the date of handling, and take measures to recover the receivables; if the receivables are recovered, the amount recovered minus related costs shall be recorded as income of the enterprise.

7. Enterprises that have not issued Debt Management Regulations as prescribed in Clause 1, Article 4 of this Decree shall be considered as having failed to complete their tasks (when ranking enterprises); the Board of Members, the Company Chairman, the Management Board, and the General Director (Director) shall not be entitled to draw from the Management Employee Reward Fund and shall only receive 80% of their monthly salary.

In cases where enterprises have not issued Debt Management Regulations despite more than one written urging from competent authorities, the Board of Members, the Chairman of the Board of Members, the Company Chairman, and the General Director (Director) shall be relieved of their positions as in the case of failing to truthfully report the financial situation of the enterprise.

Article 6. Rights and powers of enterprises in managing receivables

1. Enterprises have the right to sell overdue receivables, difficult-to-collect receivables, and unrecoverable receivables to recover capital on the principle of fully provisioning according to regulations. Enterprises may only sell debts to economic organizations with the function of buying and selling debts, and shall not directly sell debts to debtors.

2. Based on reference prices from appraisal organizations, market prices (if available), and prices agreed upon by the parties involved, enterprises bear responsibility for their decision to sell receivables. In cases where selling debts leads to losses, capital depletion, or loss of payment capability, resulting in the enterprise's dissolution or bankruptcy, members of the Board of Members, Chairman of the Board of Members (Company Chairman), General Director (Director), and individuals directly related to the generation of difficult-to-collect debts must compensate and be dealt with according to the law and the Enterprise Charter.

3. Shareholders base on the scale, business sector, nature, and value of the enterprise's debts to classify levels for the Board of Members (Company Chairman) to decide, and in cases where the sale price of debts is lower than the book value, the enterprise must report to the shareholders for decision-making. The specific classification level is stipulated in the Financial Management Regulations and Debt Management Regulations of the enterprise.

4. Enterprises must develop a debt sale plan (including a production and business operation plan for the revenue obtained from selling debts), compare it with the option of not selling the debts to make a decision or submit it to the shareholders for review and approval before implementing the sale of receivables as prescribed in Clause 3 of this Article (the difference between the book value of the debt and the sale price is offset by the reserve for difficult-to-collect receivables). The enterprise has the responsibility to continue compensating losses (if any) through business operations, without causing state investment capital to be lost; if not implemented, the Chairman of the Board of Members, the Board of Members, the Company Chairman, and the enterprise leadership will jointly bear responsibility before the shareholders and the law.

5. Other rights of enterprises, such as the right to lodge complaints and initiate lawsuits when debts cannot be recovered, the right to authorize and hire debt collection, are carried out according to the provisions of the law.

Section 2
HANDLING OF PERSISTENT RECEIVABLES
OF THE ENTERPRISE

Article 7. Handling of uncollectible receivables

1. For operating enterprises, uncollectible receivables as specified in Clause 4, Article 3 of this Decree are handled in the following order:

a) The enterprise clearly identifies the cause, responsibility of groups and individuals, and demands compensation from groups and individuals according to the law.

b) Use the reserve for difficult-to-collect receivables to offset.

c) Record as expenses or income of the enterprise, depending on the specific case.

In cases where debts are sold according to the law, after clearly identifying the cause, responsibility of groups and individuals, and demanding compensation from the parties according to the law, the difference between the value of the debt and the sale price is offset by the reserve for difficult-to-collect receivables; if insufficient, record as business expenses of the enterprise.

2. For enterprises undergoing transformation, uncollectible receivables, after handling once according to the provisions of Clause 1 of this Article and the enterprise incurs losses, continue to handle according to the State's regulations when transforming the enterprise.

3. Uncollectible receivables that have been processed (except for debt sales) but the debtor still exists, enterprises have the responsibility to continue monitoring outside the balance sheet and in the financial statement notes for a minimum period of 10 years from the date of processing and take measures to recover the debt; if the debt is recovered, the amount recovered minus related costs, the enterprise can record as income.

Enterprises undergoing transformation have the responsibility to transfer non-included debts to the enterprise value according to regulations. Receiving agencies have the responsibility to continue monitoring and organizing recovery for uncollectible receivables that have been processed but the debtor still exists. During the period before transfer, the enterprise still has the responsibility to continue monitoring and organizing recovery for these debts.

4. Enterprises are allowed to process and record uncollectible debts once in annual production and business results according to the provisions of Point c, Clause 1 of this Article.

Article 8. Handling overdue receivables that still have the potential for recovery

1. For overdue receivables that still have the potential for recovery, enterprises must actively urge payment and apply all measures to recover them.

2. For overdue receivables exceeding six months that still have the potential for recovery, enterprises must establish provisions and record them as expenses of the enterprise in the current year.

Article 9. Handling receivables of enterprises related to the state budget

1. Amounts supported or compensated by the budget according to regulations approved by competent authorities but not yet provided shall be the responsibility of the corresponding level of budget to arrange and provide fully to the enterprise.

2. Amounts overpaid by enterprises into any level of budget shall be refunded to the enterprise by that level of budget (if the enterprise requests a refund) or deducted from the next period's payment according to the law on tax administration.

3. Debts of enterprises due to insufficient or inadequate capital allocation for paying construction investment volumes under projects funded by the state budget, government bonds, or funds originating from the state budget; payments for asset transfer and office space sales to public institutions and local state management agencies within approved investment plans shall be the responsibility of relevant ministries, sectors, localities, and investment decision-making levels to allocate the state budget to timely pay the full amount to the enterprise in accordance with current laws; no requirement for enterprises to advance funds to implement projects when the state budget has not allocated funds for the project, leading to arrears in construction investment.

4. Local budgets receiving debt repayment on behalf of enterprises when transferring assets to public institutions or local state management agencies shall use the budget to repay the enterprise's debts.

5. Funds temporarily held by state agencies during inspections, audits, or investigations, after concluding that the enterprise has no violations or does not need to rectify consequences, must be immediately returned to the enterprise within five working days by the agencies responsible for temporary holding.

Chapter III
MANAGEMENT AND HANDLING OF LIABILITIES
OF THE ENTERPRISE

Section 1
MANAGEMENT OF ENTERPRISE LIABILITIES

Article 10. Responsibilities of enterprises in managing liabilities

1. Issuing and implementing the Enterprise Debt Management Regulation as stipulated in Clause 1, Article 4 of this Decree, assigning and clearly defining responsibilities for tracking and settling liabilities; maintaining complete records of liabilities including interest liabilities; classifying liabilities by time (unexpired liabilities, due liabilities, overdue liabilities); classifying liabilities by nature (long-term liabilities, short-term liabilities, preferential loans, commercial loans, foreign loans, loans guaranteed by the Government...); thoroughly monitoring all liability guarantees made by the enterprise.

2. Enterprises must ensure that their total liabilities to equity ratio does not exceed three times as prescribed by the Government regarding financial management for enterprises wholly owned by the State. When there is a need to raise capital beyond the limit for important projects, enterprises must develop specific plans, clearly define repayment schedules, balance cash flows for repayment, report to shareholders for consideration and decision based on the projects raising capital ensuring repayment capacity and effectiveness. The enterprise is responsible for the effectiveness of the project and ensuring repayment capacity, while shareholders are responsible for their decisions before the law.

3. Developing repayment plans, balancing cash flows to ensure sources of repayment; settling liabilities according to committed deadlines. Regularly reviewing, assessing, and analyzing the enterprise's ability to repay liabilities, preventing the occurrence of overdue liabilities. Liabilities without identifiable debtors shall be recorded as income of the enterprise.

4. Members of the Board of Directors, Chairman of the Board of Directors (Company Chairman), General Director (Director) of the enterprise must manage and operate the enterprise to ensure the ability to settle liabilities; they are responsible for early detection of difficulties in settling liabilities to promptly address them and prevent overdue liabilities; if timely handling is not carried out resulting in overdue liabilities not settled for more than six months, shareholders will decide on disciplinary actions according to the law against the Chairman of the Board of Directors, Board of Directors, Company Chairman, General Director, or Director based on the consequences of untimely handling; if timely handling is not carried out leading to loss of debt repayment capability, they must bear responsibility before shareholders and before the law.

5. Enterprises may only allocate funds for rewards, welfare, and managerial staff bonuses to positions such as Board of Directors members, General Director (Director), Chief Accountant, and other individuals related to debt after fully settling all due liabilities and other financial obligations (based on the original repayment deadline, excluding extended repayment periods).

Article 11. Responsibilities of enterprises when raising capital

1. Enterprises shall raise capital for investment and production and business activities in accordance with the Government's regulations on state capital investment in enterprises and financial management for state-owned enterprises holding 100% of charter capital.

2. The raising of capital by enterprises must be carefully calculated and considered regarding economic efficiency. Raised capital shall only be used and invested in approved business purposes, focusing on core business areas, not for other purposes. Raised capital must be strictly managed and operated efficiently. Enterprises must repay principal and interest according to their commitments when raising capital.

3. Enterprises must develop a capital-raising plan to ensure debt repayment capability; if exceeding the enterprise's authority, the plan must be approved by the competent authority in accordance with the division and delegation of rights, responsibilities, and obligations of state owners, ensuring debt repayment capability. The approver of the capital-raising plan shall bear responsibility for monitoring and supervising to ensure that raised capital is used for the intended purpose, for the intended recipients, and is effective.

4. Guarantees for subsidiaries owned 100% of charter capital by parent companies, and for companies with contributions from parent companies raising capital or borrowing from banks and credit organizations, shall be carried out in accordance with the Government's regulations on state capital investment in enterprises and financial management for state-owned enterprises. Projects for which parent companies provide guarantees must be appraised and evaluated to ensure effectiveness and debt repayment capacity of the guaranteed companies. Parent companies have the responsibility to closely monitor the use of borrowed funds for the intended purpose and timely repayment of debts for companies guaranteed by the parent company.

5. In cases where capital raising is ineffective or not in accordance with regulations, leading to asset losses and damage to the enterprise due to improper use of capital, the Chairman of the Board of Members, the Board of Members, the Chairman of the Company, the General Director, or the Director shall bear material compensation corresponding to the damage and loss caused to the enterprise, disciplinary action, or criminal liability depending on the severity of the violation.

6. State owners shall closely supervise the raising and use of capital at enterprises to prevent and promptly address errors and avoid damage to the enterprise.

7. Annually, along with preparing the financial plan for the next year, enterprises must prepare a capital-raising plan; determine the plan to repay debts due in the next fiscal year and submit it to the state owner and the financial agency before July 31 of the reporting year for tracking and supervision.

Section 2
SETTLEMENT OF DEBTS DUE
OF THE ENTERPRISE

Article 12. Tax Debts and Other Amounts Due to the State Budget

1. The settlement of tax debts and other amounts due to the state budget by enterprises shall be carried out in accordance with the laws on taxes, fees, and charges.

2. For enterprises implementing conversion under Decree No. 109/2008/ND-CP dated October 10, 2008, on selling and transferring 100% state-owned enterprises and Decree No. 59/2011/ND-CP dated July 18, 2011, on converting 100% state-owned enterprises into joint-stock companies, the settlement of tax debts and other amounts due to the state budget shall be carried out in accordance with relevant legal documents.

3. For loans and advances from the state budget, enterprises have the responsibility to repay the state budget in accordance with the regulations. If unable to repay due to objective reasons, the enterprise shall report to the competent authority to resolve each specific case in accordance with the law.

Article 13. Debts owed by enterprises borrowing from credit institutions

1. For operating enterprises experiencing difficulties in paying overdue debts borrowed from credit institutions due to business losses, debt settlement shall be carried out in accordance with the regulations of the Government and current laws related to the settlement of credit institution debts.

2. For enterprises undergoing restructuring (as stipulated in Decree No. 109/2008/NĐ-CP dated October 10, 2008 on selling and transferring state-owned enterprises with 100% state capital and Decree No. 59/2011/NĐ-CP dated July 18, 2011 on converting state-owned enterprises with 100% state capital into joint-stock companies) experiencing difficulties in paying overdue debts borrowed from credit institutions due to business losses, debt settlement shall be carried out in accordance with current laws on the settlement of outstanding debts; actively coordinate with creditor banks and organizations with functions to buy and sell debts to settle overdue debts in forms consistent with legal provisions.

3. The settlement of overdue debts of enterprises borrowing from the Vietnam Policy Bank and the Vietnam Development Bank shall be implemented in accordance with the regulations of the Prime Minister.

Article 14. Settlement of payable debts with guarantees

Organizations and individuals guaranteeing loans and deferred payment of materials and goods for enterprises that have not been able to repay their debts beyond the payment deadline shall be required to repay the debt on behalf of the guaranteed enterprise. The enterprise being repaid has the responsibility to accept and repay the debt to the guarantor organization or individual in accordance with current legal provisions.

Article 15. Settlement of Social Insurance Debts

1. For enterprises undergoing restructuring, before implementing the restructuring, the enterprise must settle all debts with the Social Insurance Fund definitively.

2. For enterprises implementing sales without assuming debts: Priority shall be given to using proceeds from the sale of the enterprise to pay off the enterprise's debts to the Social Insurance Authority.

3. For operating enterprises that have completed restructuring, the settlement of Social Insurance debts shall be carried out in accordance with legal provisions.

Article 16. Settlement of Payable Debts of Organizations and Individuals

1. Enterprises with a decision to restructure must settle all due and overdue debts to creditors inside and outside the enterprise before implementing the restructuring. In cases where the enterprise has difficulties in repaying the debt, it must provide a written commitment to repay the debt and obtain creditor approval, or if the enterprise needs additional capital mobilization and debt restructuring and obtains creditor approval, it may convert its debt into shares in the restructured enterprise but must comply with legal provisions regarding the minimum number of shareholders and the right to purchase initial shares in privatized enterprises.

2. For operating enterprises that have completed restructuring, the settlement of payable debts shall be carried out in accordance with legal provisions.

Article 17. Handling of Enterprises Unable to Repay Debts

An enterprise engaged in production and business operations with prolonged significant losses, which has been reorganized but still cannot pay due debts, the owner has the right to decide to sell the enterprise or initiate bankruptcy proceedings in accordance with the law. If it is necessary to continue operations, the enterprise must develop a repayment plan, a bad debt resolution plan, and an effective business plan approved by the competent authority or the owner. The sector management ministry, provincial people's committee has the authority to decide on applying necessary measures to restore the ability to pay due debts and business operations of the enterprise; in cases exceeding their authority, they must report to the Prime Minister for consideration and decision.

Chapter IV
MANAGEMENT AND SETTLEMENT OF DEBTS IN STATE CAPITAL ENTERPRISES
STATE CAPITAL

Article 18. Management and handling of receivables and payables at state-owned enterprises

The management and handling of debts of state-owned enterprises based on the provisions of this Decree shall be carried out through the Representative.

At state-owned enterprises, the Representative is responsible for implementing according to the directives of the owner to propose and vote on the state-owned enterprise's debt management and handling work as stipulated in this Decree.

Article 19. Rights and responsibilities of the Representative

1. The Representative, authorized to perform the rights and responsibilities of the state owner, must comply with the law; fulfill the assigned tasks by the state owner; report regularly or upon request of the owner about the situation of debt management of state-owned enterprises; promptly report to the owner when the enterprise cannot ensure the ability to recover and pay off debts, production and business operations incur losses, fail to achieve goals and tasks assigned by the owner, or other violations as prescribed in this Decree.

2. In case of failing to promptly report to the owner about the situation of debt management of the enterprise when it cannot ensure the ability to recover and pay off debts, the Representative will be relieved of their position as if they had reported financial situations of the enterprise untruthfully two or more times; if they fail to promptly report to the owner so that the owner can take measures to direct resolution leading to the enterprise losing its ability to pay, they must bear responsibility before the owner and before the law.

Chapter V
RIGHTS AND RESPONSIBILITIES OF MINISTRIES,
PROVINCE PEOPLE'S COMMITTEES

Article 20. Rights and responsibilities of the Ministry managing the sector, provincial People's Committee

1. Implement their rights and responsibilities within the scope of functions and tasks as prescribed by law. Regularly organize supervision, inspection, and evaluation of debts of the parent company of state economic groups, parent company of state corporations, limited liability companies with one member established or managed by the Ministry managing the sector, provincial People's Committee. In case difficulties are found in recovering and paying off debts, the Ministry managing the sector, provincial People's Committee shall require and instruct the company to develop a remediation plan and report to the competent authority for consideration and decision.

2. Direct and urge the Board of Members, Chairman of the Board of Members (Company Chairman), General Director (Director) of the enterprise to issue the Debt Management Regulations of the enterprise as stipulated in Clause 1, Article 4 of this Decree.

3. Direct the Representative to vote and decide on issues related to debt management and handling at the shareholders' meeting or board of directors meeting of state-owned enterprises.

4. Require the Representative to supervise and inspect regularly and report periodically or urgently on the situation of debt management and handling at state-owned enterprises; take timely measures when these enterprises cannot ensure the ability to recover and pay off debts.

5. Report annually, by March 31 each year, a comprehensive analysis and assessment of the previous year's debt situation of state economic groups, state corporations, limited liability companies with one member, and enterprises with state capital contributions established or managed by the Ministry managing the sector, provincial People's Committee, to the Ministry of Finance for consolidation and reporting to the Government.

Article 21. Rights and responsibilities of the Ministry of Finance

1. Take the lead in researching and drafting to report to the Government on mechanisms for managing corporate debt; guidelines on monitoring and evaluating indicators for debt repayment capability of enterprises; guidelines on the establishment and utilization of provisions for difficult-to-collect receivables.

Coordinate with sector management ministries, provincial People's Committees in supervising, inspecting, and assessing debts of state-owned economic groups, state-owned joint-stock companies, and limited liability companies with one member established or entrusted to manage by sector management ministries or provincial People's Committees.

3. Annually compile and report to the Government on the situation of enterprise debts.

Chapter VI
IMPLEMENTING PROVISIONS

Article 22. Effectiveness

This Decree takes effect from February 1, 2014, and replaces Decree No. 69/2002/NĐ-CP dated July 12, 2002, of the Government on the management and resolution of overdue debts for state-owned enterprises.

Article 23. Responsibilities for Implementation and Organization

1. The Chairman of the Board of Members (Company Chairman) of the parent company referred to in Point a Clause 1 Article 2 shall base on the provisions of this Decree and relevant laws to issue the Debt Management Regulations of enterprises within ninety days from the date this Decree takes effect.

2. Parent companies shall base on the provisions of this Decree and relevant laws to issue the Debt Management Regulations for wholly-owned subsidiaries.

3. Ministers, Chairmen of provincial People's Committees, Chairmen of the Board of Members, Chairmen of companies, General Directors, Directors of enterprises wholly owned by the State, and Authorized Representatives for the State's investment capital in enterprises are responsible for implementing this Decree./.