Joint Circular No. 21-TT/LB guiding the implementation of Directive No. 153-TTg/TN dated December 21, 1965 of the Prime Minister on lending money to cadres, workers, and civil servants to purchase bicycles and motorcycles (or motorized bicycles).

JOINT CIRCULAR

Guidelines for Implementing Directive No. 153-TTg/TN dated December 21, 1965 of the Prime Minister on lending money to cadres, workers, and civil servants to purchase bicycles and motorcycles (or motorized bicycles)

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The Prime Minister issued Directive No. 153-TTg/TN dated December 21, 1965 regarding lending money to cadres, workers, and civil servants (hereinafter referred to as workers and civil servants) to purchase bicycles and motorcycles (or motorized bicycles) to provide means of transportation for work purposes. Below are the guidelines issued by the Ministry of Finance, Ministry of Domestic Trade, and the State Bank for implementing the aforementioned directive concerning the lending of money to purchase bicycles.

I. SUBJECTS ELIGIBLE TO PURCHASE BICYCLES ON CREDIT

Due to limited capacity of state trading enterprises and high demand for bicycles, the determination of eligible subjects to purchase bicycles on credit must be strict, and should be prioritized as follows:

1. Workers and civil servants currently engaged in mobile work who do not have bicycles due to financial difficulties.

However, within each agency or enterprise, priority should be given to those who need to travel frequently for production or work purposes but have not been able to purchase a bicycle due to extreme financial hardship.

2. Workers and civil servants working in provincial positions shall not be eligible to purchase bicycles on credit. In exceptional cases, if someone's residence is far from their workplace and they have not purchased a bicycle due to extreme financial hardship, the agency or enterprise may consider allowing them to purchase on credit after selling bicycles to those mentioned in Point 1.

Workers and civil servants who already own bicycles but transferred or sold them after December 21, 1965 (the date when the Prime Minister's policy on selling on credit was announced) shall not be eligible to purchase bicycles on credit.

II. RESPONSIBILITIES AND BENEFITS FOR PERSONS PURCHASING BICYCLES ON CREDIT

1. Persons purchasing bicycles on credit must pay at least one-third of the bicycle price immediately upon purchase. The remaining amount will be deducted from their monthly salary over a maximum period of 18 months, in accordance with the provisions of Directive No. 153-TTg/TN of the Prime Minister.

Under no circumstances can the purchaser request an extension beyond the 18-month repayment period or a reduction in debt.

The above provision is intended to enable purchasers to plan their expenses so that purchasing and repaying for the bicycle does not affect their normal living conditions, while also not impacting state finances. During the repayment period, if possible, the purchaser may request higher monthly deductions from their salary to repay the debt ahead of schedule.

2. Workers and civil servants purchasing bicycles on credit, if they have not fully paid off the remaining balance, shall not be allowed to sell the bicycle. After fully repaying the debt, if they wish to sell the bicycle, they must obtain permission from the head of the agency or enterprise, after consulting with the trade union, and can only sell it within the agency or enterprise or to state trading enterprises, strictly prohibiting its sale in the free market. The police department will coordinate to manage this through bicycle registration.

3. Those purchasing bicycles on credit will enjoy the supply price if:

- They have never owned a bicycle before;

- Or they previously owned a bicycle but sold it to state trading enterprises or transferred it to another person within the agency or enterprise (at the purchase price of state trading enterprises), or lost it under recognized circumstances.

For those who previously owned a bicycle (regardless of whether it was purchased from the agency, supplied through a voucher, or bought freely) but sold it in the free market for any reason, they must purchase it at the free market price set by state trading enterprises, regardless of whether they buy it on credit or pay in full.

4. Each person can only purchase one bicycle on credit. A person who has purchased a bicycle on credit cannot purchase a motorcycle (or motorized bicycle) on credit, and vice versa.

5. Individuals borrowing money to purchase bicycles must have a receipt and a declaration agreeing to deduct the loan from their monthly salary (Form No. 3-XD)([1]).

III. DISTRIBUTION OF BICYCLES SOLD ON CREDIT

Depending on material resources, annually, the Prime Minister will determine the quantity of bicycles to be sold on credit to workers and civil servants. Based on this quantity, the Ministry of Domestic Trade will coordinate with the Ministry of Finance to develop distribution plans for each period.

At localities, upon receiving the distribution quota, the trading agency will coordinate with the finance agency at the same level to develop distribution plans for each agency and enterprise located in the locality. After approval by the provincial or city administrative committee, the trading agency will notify the number of bicycles allocated to each agency and enterprise, simultaneously sending copies to the finance agency for consideration of credit purchase plans. The notification will clearly specify the number of bicycles of each type and prices (supply and free market).

Regarding bicycle models, female bicycles are exclusively reserved for female workers and civil servants.

IV. PROCEDURES FOR LOAN ISSUANCE FOR BICYCLE PURCHASES AND DEBT RECOVERY

1. Preparation and Approval of Credit Purchase Plans

At each agency or enterprise, based on the number of bicycles distributed in each batch, the administration will cooperate with the research team to review the list of eligible persons to purchase bicycles on credit and prepare a credit loan plan (Form No. 1-XD)([2]). This plan, signed by the head of the agency or enterprise (or authorized representative), will be considered a loan agreement and sent to the finance agency at the same level for examination and issuance of the loan.

The supervisory ministry will examine and consolidate the credit loan plans of subordinate units (Form No. 2-XD)([3]) and send them to the finance agency at the same level for examination and issuance of the loan.

However, to facilitate distribution, purchase, and debt recovery monitoring, central units stationed in localities (excluding those in Hanoi's urban and suburban areas) with stable characteristics do not need to submit their plans to the supervisory ministry for consolidation but can directly send them to the finance agency at the same location for loan issuance examination.

Units under the central authority located in localities but with unstable accommodation (for example, construction sites of the Ministry of Transport, irrigation construction sites of the Ministry of Water Resources, evacuation bases of various Ministries and General Departments...) shall submit their borrowing plans to the competent ministry for consolidation and transfer to the Ministry of Finance for approval of loan disbursement.

For agencies and enterprises under the Viet Bac and Northwest Regions, their borrowing plans shall be submitted to the Financial Department of Bac Thai Province (for the Viet Bac Region) and Son La Province (for the Northwest Region) for processing.

At the district level, the District People's Committee shall prepare a general plan for agencies receiving salaries at the district level and submit it to the provincial financial department for approval of loan disbursement. As for agencies around the district but receiving salaries from the competent departments, the borrowing plan for purchasing vehicles shall be made with the competent departments.

2. Issuance of loans for bicycle purchases and settlement of bicycle payments with trading companies.

The funds for workers and officials to borrow for purchasing bicycles shall be temporarily allocated from the state budget. At the central level, the Ministry of Finance shall temporarily allocate to the central budget. At the local level, the provincial or municipal financial departments shall temporarily allocate to the local budget. The loan funds for purchasing bicycles shall not be directly provided to individuals or units but transferred to bicycle trading companies.

Monthly repayments of bicycle purchase loans shall not be deposited into the state budget but shall be deposited into a separate account (account number 733, sub-account 02 "loan funds for bicycle purchases") opened at the State Bank for circulation as loan capital for bicycle purchases. In subsequent periods, if there is a shortage of capital, additional temporary allocations from the budget will be made. It is strictly prohibited to use this account for purposes other than bicycle purchase loans.

After issuing bicycle purchase loans, the financial agency shall provide the borrowing unit with a bicycle purchase introduction letter (model number 5-XD) and notify the State Bank (or Construction Bank) where the unit has an account to deduct monthly salaries (model number 4-XD).

Based on the introduction letter, in conjunction with the bank's confirmation notice, bicycle trading companies shall collect the full amount due from the unit and issue bicycle collection vouchers (one voucher per bicycle, specifying the type, model, price, collection period, and delivery store).

The unit shall distribute the bicycle collection vouchers to the buyers so they can collect their bicycles from the designated store. When delivering bicycles, the store shall issue invoices to the buyers for ease of vehicle registration.

3. Monitoring recovery of bicycle purchase loan funds.

Recovery of funds for bicycle purchase loans begins in the month immediately following the month when the loan was issued. For example, if the loan is issued in July, deduction of salary starts in August; if issued in October, deduction starts in November.

a) Responsibilities of the agency or enterprise.

Agencies or enterprises that borrow for bicycle purchases are responsible for monitoring the recovery of loan funds from workers and officials through monthly salary deductions. To avoid affecting the daily life of the buyers, the remaining salary after deduction of the bicycle loan will be paid in two installments according to the current ratio. For example, Mr. A receives a monthly salary of 70đ, with a monthly bicycle loan repayment of 10đ. The remaining salary will be paid as follows:

- Deducting the bicycle loan from the first salary installment: 10đ

- Receiving 60% of the remaining salary in the first installment:

- Receiving 40% of the remaining salary in the second installment:

Agencies or enterprises that borrow for bicycle purchases must maintain individual records for each buyer, noting the loan amount and monthly salary deductions.

The notification of salary deductions must be sent by the agency or enterprise to the financial agency in duplicate.

If there are changes in the deduction rate during the quarter, a new notification must be promptly prepared.

Each month, when collecting the first salary installment, the borrowing unit must submit to the State Bank a payment withdrawal form combined with a payment authorization form (if it is an administrative or public service agency) or a payment authorization form accompanied by a payment submission form (if it is an enterprise) to deposit the correct amount into the "bicycle purchase loan fund" account as specified in the salary deduction notification.

Each quarter, the agency or enterprise must report the recovery status to the competent authority for consolidation and submission to the financial agency. The report must clearly specify the total loan amount, quarterly repayments, and outstanding balance.

b) Responsibilities of the financial agency.

The financial agency must maintain separate records for each competent authority that borrows for bicycle purchases, while also keeping track of the "bicycle purchase loan fund" account held at the State Bank to ensure accurate tracking of expenditures and receipts. Each month, the financial agency must reconcile its records with the State Bank regarding the expenditures and receipts of the aforementioned account.

Additionally, each time a temporary allocation order for bicycle purchase loans is issued, the financial agency must record it separately to monitor the capital outlay for workers and officials purchasing bicycles and ensure its full return to the state budget in the future when the decision to stop selling on credit is made.

c) Responsibilities of the State Bank and Construction Bank.

These institutions are responsible for, based on the salary deduction notifications, collecting and depositing the deducted amounts into the "bicycle purchase loan fund" account each month.

The banks will proactively retain the portion of salary that should be deducted from units that fail to complete the necessary procedures for payment or repayment below the amount specified in the salary deduction notification.

Each month, the State Bank will prepare a statement of the "bicycle purchase loan fund" account and send it to the financial agency for reconciliation.

For units funded by basic construction capital for salaries, the construction bank branches have the responsibility to monitor the payroll and retain the amount deducted for bicycle loans as specified in the notification. The construction bank will issue a transfer check for the amount to be deposited into the financial agency's account number 733, sub-account 02 "bicycle purchase loan fund" held at the State Bank.

d) Monitoring debts when borrowers are transferred to another location.

In cases where workers or officials have not fully repaid their bicycle purchase loans and are transferred to work at another unit, strict monitoring of debt recovery must be maintained on the principle that:

- The borrower is responsible for continuing to repay the loan upon taking up the new position and receiving salary at the new unit;

- After the old unit has completed its responsibility for deducting from the salary paid to the borrower until the month when the borrower stops receiving salary at the old unit, the new unit shall immediately assume the responsibility for continuing to deduct the salary of the debtor from the month the debtor starts receiving salary at the new unit;

- If the borrower is transferred to another province, the financial authority of the new location shall be responsible for settling the remaining debt of the debtor and transferring it to the "loan for bicycle purchase" account of the financial authority of the old location;

To ensure the implementation of the above principles, the following procedures must be carried out: For the old unit:

- Record on the "termination of salary payment certificate" of the borrower the amount still owed and the number of months remaining for repayment;

- Notify the new unit separately with a letter accompanied by the receipt of the borrower when borrowing money;

- Reissue the salary deduction notice sent to the financial authority to adjust the deduction rate (accompanied by a notification of the borrower's name, who has been transferred to work at which agency or enterprise in which province);

For the new unit:

- Register the borrower's name in the record of people borrowing money to buy bicycles;

- Issue a salary deduction notice sent to the financial authority for confirmation and continue to deduct the salary of the debtor at the new unit;

For the financial authority:

- If the borrower transfers within the same province, the financial authority must confirm on the salary deduction notices of both the old and new units to adjust the debt collection level between the two units before sending them to the bank;

- If the borrower is transferred to another province, the financial authority of the old location confirms the salary deduction notice of the old unit as mentioned above, while informing the financial authority of the new location about the amount the debtor still needs to repay, the number of months of repayment, and the name of the unit accepting the borrower;

- The financial authority of the new location, after verifying that the borrower has reported for duty in their province, will issue a letter to transfer funds from the "loan for bicycle purchase" local fund to settle the remaining debt of the debtor and transfer it to the "Loan for Bicycle Purchase" account of the old location (through inter-bank transactions);

This payment amount is considered a temporary advance to the unit receiving the transferred personnel, so after notifying that unit, the financial authority of the new location records it in the bookkeeping of units borrowing money to buy bicycles and urges the recovery of the debt into the "Loan for Bicycle Purchase" account of their province;

V. ORGANIZATION OF BICYCLE SALES ON CREDIT.

The sale of bicycles on credit to workers and officials will be conducted once every quarter in the first month of each quarter.

The first round will be implemented at the beginning of the third quarter of 1966.

Agencies and enterprises need to submit loan estimates for bicycle purchases to the financial authority before the twentieth day of the third month of each quarter.

VI. SCOPE OF IMPLEMENTATION.

The credit sale system of bicycles set forth herein applies uniformly to administrative agencies, public service organizations, and state-owned enterprises (including joint public-private enterprises that have implemented a unified wage system like state-owned enterprises) at the district level and above. Party organs, mass organizations, and social organizations regularly subsidized by the state budget also apply this credit sale system of bicycles.

As for armed forces, the Ministry of Defense and the Ministry of Public Security, based on the general provisions of this circular, will issue guidance documents for implementation within their respective agencies and units after consultation with the Ministry of Finance.

Based on this circular, the Ministry of Commerce, the Ministry of Finance, and the State Bank will issue specific regulations on business operations to guide the implementation of this circular within their sectors to ensure uniformity, completeness, and strictness.

Selling bicycles on credit to workers and officials involves some difficulties and complexities, as the demand from workers and officials is large while the supply of bicycles is limited, thus only a certain extent can be addressed; the time required to recover the loaned capital back to the state budget exceeds one year, making debt collection somewhat challenging, especially for workers and officials who change their place of employment...

Therefore, the Joint Ministries propose that all ministries, agencies, and provincial administrative committees pay close attention to strictly guiding the sale of bicycles on credit to workers and officials to effectively implement the government's policy of selling to the right targets and places with actual needs, ensuring work performance, unity, and absolutely not allowing any loss of public funds.

In each sector and level, pilot projects (one step ahead) should be conducted in one or two units to gain experience for widespread guidance. Financial authorities must provide detailed guidance to units in maintaining accounting records.

During implementation, if there are any difficulties or obstacles, they should be promptly reported to the Joint Ministries for study and resolution.