LETTER

OF THE MINISTRY OF FINANCE NUMBER 2302 TC/KBNN ON MARCH 14, 2003
REGARDING GUIDELINES FOR SUPPLEMENTARY HANDOVER OF PROGRAM 120

Respectfully submitted to: - People's Committees of provinces and centrally governed cities

- Central agencies of mass organizations and associations

Ministry of Defense

- Department of Labor, Invalids and Social Affairs, Department of Finance - Prices,

State Treasury, Branches of the Social Policy Bank

Guidelines for the functions, tasks, authorities, and organizational structure of Provincial and Central City Standard Measurement Quality Control Agencies

Implementing Decree No. 78/2002/NĐ-CP dated October 4, 2002 of the Government on credit for the poor and other policy targets, Decision No. 131/2002/QĐ-TTg dated October 4, 2002 of the Prime Minister on the establishment of the Social Policy Bank; the Ministry of Finance issued Circular No. 11/2003/TT-BTC dated February 11, 2003 guiding the handover of loan tasks for job creation from the State Treasury to the Social Policy Bank based on Resolution No. 120/HĐBT dated April 11, 1992 of the Council of Ministers (now the Government).

Due to the newly established Social Policy Bank starting operations, the handover of loan tasks for job creation faces many difficulties. To ensure the handover proceeds without affecting the progress of lending and debt collection for projects; after reaching consensus with the Ministry of Labor, Invalids and Social Affairs, the Social Policy Bank, the Ministry of Finance supplements some points as follows:

1/ From April 1, 2003, the implementation of loans for job creation projects will be uniformly carried out through the Social Policy Bank system. For projects that have been authorized to borrow, write off, or forgive debts before April 1, 2003, the State Treasuries continue to implement borrowing, write off, or forgive debts according to current regulations.

2/ Based on the capital plan for the program in 2003 already announced, the Department of Labor, Invalids and Social Affairs shall take the lead in collaboration with the branches of the Social Policy Bank, relevant mass organizations, and associations to implement loan projects to submit to the competent authority for decision-making according to current regulations on loans from the National Employment Support Fund.

3/ For projects previously borrowed by the State Treasury that have reached their repayment deadline, while the handover has not yet taken place, the State Treasuries continue to collect debts according to current regulations, with the final deadline being June 30, 2003. The original funds recovered, the State Treasury is responsible for transferring them immediately to the branch of the Social Policy Bank to ensure funding for project loans.

4/ Alongside the implementation of loan disbursement and debt collection for projects, the State Treasuries and branches of the Social Policy Bank must urgently carry out the handover of loan tasks for job creation according to Circular No. 11/2003/TT-BTC dated February 11, 2003 of the Ministry of Finance, with the handover completion date being June 30, 2003. During the handover process, note the following points:

- For projects still within the repayment period, the State Treasury shall immediately hand over all project files to the branch of the Social Policy Bank. The handover must be completed definitively for each project and each borrower, and a handover record must be established.

- For projects with overdue debts or write-offs, if both parties encounter difficulties in handling the debts and cannot hand them over, the State Treasury shall compile and send a document to the Department of Finance - Prices for appropriate measures. In case of difficulty in settling debts that have not been transferred, the State Treasury shall compile and send a document to the Department of Finance - Price to take appropriate measures to handle the situation.

5/ AT At the local level, a joint inspection team led by the Department of Finance - Prices, together with the Department of Labor, Invalids and Social Affairs, the State Treasury, the branch of the Social Policy Bank, and relevant mass organizations and associations, shall conduct inspections and evaluations of untransferred debts, clearly identify the lost capital, and propose solutions to the Ministry of Finance. Completion time is before June 15, 2003.

AT At the central level, the Ministry of Finance will coordinate with the Ministry of Labor, Invalids and Social Affairs, the Ministry of Planning and Investment, central agencies of mass organizations and associations, and the Ministry of Defense, the Social Policy Bank to form a joint inspection team to unify measures for handling and direct the completion of transfer procedures to the Social Policy Bank according to the specified timeframe.

6/ Based on the results of the handover at the local level and central agencies of mass organizations and associations, by June 30, 2003, the Social Policy Bank and the Central State Treasury must prepare a handover record and report the implementation results to the Joint Ministry of Labor, Invalids and Social Affairs - Ministry of Finance - Ministry of Planning and Investment to report to the Prime Minister.

It is requested that the People's Committees of provinces and centrally-administered cities, central agencies of mass organizations and associations, and the Ministry of Defense instruct relevant agencies under their jurisdiction to cooperate with the Department of Labor, Invalids and Social Affairs and the branches of the Social Policy Bank to promptly implement loan projects, ensuring the program's objectives are not interrupted; simultaneously directing the State Treasury and the Social Policy Bank to accelerate the handover of loan tasks for job creation according to the prescribed deadlines.

In the course of the handover, if there are any difficulties, it is requested that localities and units promptly reflect them to the Ministry of Finance for resolution.