Decision No. 212/2006/QĐ-TTg on credit for production, business, service establishments, and enterprises employing former drug addicts

DECISION OF THE PRIME MINISTER

On credit for production, business, service establishments and enterprises employing former drug addicts and enterprises employing workers who have completed drug rehabilitation

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PRIME MINISTER

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

Pursuant to Resolution No. 16/2003/QH11 dated June 17, 2003 of the National Assembly on the implementation of pilot programs for managing, vocational training, and job placement for former drug addicts in Ho Chi Minh City and other centrally governed cities and provinces;

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 Finance,

DECISION:

Article 1. Implementing preferential credit mechanisms for production, business, service establishments and enterprises employing former drug addicts as follows:

1. The Social Policy Bank shall mobilize capital or accept entrusted capital from provincial and municipal budgets to provide loans to production, business, service establishments (hereinafter referred to as establishments) and enterprises employing former drug addicts in centrally governed cities and provinces that have been approved by the Prime Minister for the pilot program "Management, Vocational Training, and Job Placement for Former Drug Addicts" under Resolution No. 16/2003/QH11 dated June 17, 2003 of the National Assembly. TThe Prime Minister approves the pilot project "Organizing management, vocational training, and job placement for individuals after drug rehabilitation" pursuant to Resolution No. 16/2003/QH11 dated June 17, 2003 of the National Assembly.

2. Provincial and municipal budgets that have been approved for the pilot program "Management, Vocational Training, and Job Placement for Former Drug Addicts" shall implement the entrustment, subsidize interest rate differences, and management fees for the Social Policy Bank when providing loans to establishments and enterprises employing former drug addicts.

Article 2. Borrowers include households, establishments, and enterprises employing former drug addicts within the scope of the pilot program "Management, Vocational Training, and Job Placement for Former Drug Addicts" of centrally governed cities and provinces approved by the Prime Minister.

Article 3. Borrowers must meet the following conditions:

1. Having feasible production and business plans with the ability to repay loans according to commitments.

2. Production and business plans must employ former drug addicts. The proportion of former drug addicts employed in total labor force of the plan is determined by the provincial or municipal People's Committee.

3. Production and business plans must be confirmed regarding location and employment of former drug addicts by the competent authority as guided by the provincial or municipal People's Committee.

Article 4. Loan proceeds may be used for the following purposes:

1. Purchasing materials, machinery, equipment, expanding workshops; transportation means, fishing vessels, to expand and enhance production and business capacity.

2. Purchasing raw materials, seeds, livestock, paying services for production and business.

Article 5. Loan amount:

1. The Social Policy Bank shall determine the loan amount based on the borrowing needs and the ability to repay the loan of the borrower.

2. Maximum loan amount:

a) For household borrowers, the maximum loan amount does not exceed 20 million VND per household.

b) For establishment and enterprise borrowers, the maximum loan amount does not exceed 500 million VND per project.

Article 6. Interest rate on loans:

1. The interest rate on loans shall be applied according to the interest rate for poor households decided by the Prime Minister.The Prime Minister decides.

2. The overdue interest rate is calculated at 130% of the loan interest rate.

Article 7. Loan term, extension of debt, and overdue debt conversion:

1. The loan term shall be based on the purpose of using the loan proceeds and the repayment period of the production and business plan.

2. In cases where borrowers cannot repay the loan on time due to objective reasons, the Social Policy Bank shall consider extending the loan term.

3. In cases where borrowers misuse the loan proceeds, have the ability to repay the due debt but fail to do so, the debt will be converted to overdue debt.

4. The loan term, extension of debt, and overdue debt conversion shall be decided by the Board of Directors of the Social Policy Bank.

Article 8. Authority to decide procedures, formalities, and loan documentation.

Based on the provisions of this Decision, the Board of Directors of the Social Policy Bank shall specify detailed procedures, formalities, and loan documentation to ensure simplicity, clarity, and ease of implementation.

Article 9. Credit risk and risk handling

In cases where borrowers encounter risks due to objective reasons, they will be considered and handled according to the regulations on handling risky debts at the Social Policy Bank. The source for handling risky debts will be subsidized by the provincial or municipal budget.

Article 10. Responsibilities of agencies:

1. The Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to guide implementation, inspect, and supervise the implementation of this Decision.

2. Provincial and municipal People's Committees that have been approved for the pilot program "Management, Vocational Training, and Job Placement for Former Drug Addicts" under Resolution No. 16/2003/QH11 dated June 17, 2003 of the National Assembly shall be responsible for:

a) Providing specific guidance on implementing this Decision in their respective provinces and cities in accordance with the pilot program on management, vocational training, and job placement for former drug addicts that has been approved. the Prime Minister.

b) Annually, based on economic and social development tasks in their areas and budget allocation capabilities, provincial and municipal People's Committees shall develop plans for lending to households, establishments, and enterprises employing former drug addicts within their jurisdiction and plans for subsidizing interest rate differences to be handed over to the Social Policy Bank for implementation within the announced plan.

c) Directing relevant agencies to organize the implementation of this Decision in their areas.

d) Inspecting and supervising the provision of loans by the Social Policy Bank to establishments and enterprises employing former drug addicts in their areas.

Article 11. Implementation organization:

This Decision shall take effect 15 days after its publication in the Official Gazette.

2. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial People's Committees under the central government, Chairpersons of the Board of Directors, and General Directors of the Vietnam Policy Bank shall be responsible for implementing this Decision./.