Directive No. 235/TTg on accelerating total settlement and debt resolution in Phase II

DIRECTIVE

ON STRENGTHENING THE TOTAL SETTLEMENT AND HANDLING OF DEBTS IN PHASE II

More than one year after implementing Decision No. 277/CT dated July 29, 1992 of the Chairman of the Council of Ministers (now Prime Minister) on debt settlement in Phase II, various sectors and levels have concentrated a considerable number of cadres to implement it. The consolidated figures for debts due nationwide in Phase II amount to 60,000 billion VND, over 200 million USD, nearly 10 billion Japanese Yen... Up to now, more than 70% of the debts have been declared and confirmed, with over 500 billion VND settled and handled. Some localities and sectors have analyzed the causes of debt generation and dealt with some cases violating financial management and debt settlement regulations of state-owned enterprises and other economic organizations.

However, the implementation of the plan for total debt settlement in Phase II has been too slow, only reaching the declaration and confirmation stage, with nearly 30% of declared debts still not confirmed, and the majority of confirmed debts yet to be settled and handled. Some ministries, sectors, and localities have not strictly directed, relying or avoiding, lacking firmness in debt settlement.

To accelerate debt settlement and conclude the total debt settlement in Phase II in 1994, aiming to restore financial discipline and create conditions for normal operations of enterprises, the Prime Minister issues the following directive:

1. Units in arrears must fully utilize all available capital including money, assets, goods, real estate, equipment, and various funds..., and find every possible measure to settle all confirmed debts including domestic enterprise debts, foreign debts, bank debts, and budget debts. For state-owned enterprises still in operation, the supervising authority must direct repayment within the prescribed period. For dissolved, ceased, or merged enterprises, the supervising authority must take specific measures according to current regulations to resolve each enterprise's debt repayment.

From July 1, 1994, the handling of debts for enterprises that have lost their ability to repay will follow the Bankruptcy Law of Enterprises.

Any intentional delay or evasion of debt repayment will be subject to administrative disciplinary action, and if the individual is a Party member, the Party organization will impose Party disciplinary action; in serious cases, criminal responsibility will be pursued according to the law, regardless of the position held by such individuals.

2. Debt settlement and handling must be carried out strictly in accordance with guiding documents and must be implemented resolutely and urgently as follows:

a) Debts declared and confirmed between operating state-owned enterprises must be settled immediately. The Central General Debt Settlement Steering Committee will guide the settlement and handling according to the methods applied in Phase I.

b) For dissolved, ceased, or merged state-owned enterprises still in arrears, the Liquidation Board established to manage the enterprise's assets must bear responsibility for debt settlement. In the absence of a Liquidation Board, the supervising authority and the person who signed the decision to establish the unit must assume responsibility for resolving the debt settlement. Assets, capital of units in arrears that have been mobilized, transferred, or used for other purposes must be recovered to repay debts.

For debts guaranteed in writing, if the debtor unit cannot repay, the guarantor unit or individual must stand in to repay the debt on behalf of the debtor unit.

Managers of enterprises who lack a sense of responsibility causing capital and asset losses or have evidence of embezzlement or abuse must be resolutely required to compensate, and in serious cases, criminal responsibility will be pursued and personal property will be processed according to the crime. For state-owned enterprises in arrears under the management of any level, the Debt Settlement Board at that level has the right to apply measures to seize and auction off the assets of that unit to settle debts; has the right to order the recovery of assets of enterprises still in arrears but have been dissolved, ceased, or merged to repay debts.

c) For dissolved, ceased, or merged enterprises in arrears, apart from liquidating assets and utilizing all possibilities to settle debts, the collective and individual responsibilities of the agencies issuing decisions to establish, dissolve, or merge these enterprises must be clearly defined.

3. The Minister of Finance and the Governor of the State Bank shall provide detailed guidance on exchange rates, interest rates, and methods of debt settlement for each category, sector, and locality according to the principles and procedures already stipulated for debt settlement.

4. The Ministries of Home Affairs and Inspection shall closely coordinate with People's Courts and People's Procuratorates to direct the enforcement of compulsory measures, seizure, auctioning of assets, and pursuit of criminal and civil liability according to the law for cases requiring such penalties during the organization of debt settlement.

5. To conclude the total debt settlement in Phase II in 1994, ministers, heads of central agencies, departments, and chairmen of provincial people's committees must proactively concentrate on directing and firmly handling economically, administratively, and legally as stipulated, such as setting deadlines for repayment, freezing assets and accounts for auctioning, revoking business licenses and registrations, enforcing administrative disciplinary actions, proposing Party organizations to impose Party disciplinary actions if they are Party members, and pursuing criminal responsibility for cases with evidence of crimes. Each ministry, sector, province, and city needs to focus on recruiting some cadres with quality and capability, forming specialized teams for a certain period to organize debt settlement and handling decisively within their own ministries, sectors, and localities. The Central General Debt Settlement Steering Committee will recruit additional cadres from member sectors, form some specialized teams directly urging and inspecting some key ministries, sectors, and localities in implementing this Directive.

6. The mass media shall promptly set examples for ministries, sectors, localities, and units and individuals who effectively implement payment and debt resolution, while criticizing units and individuals who lack responsibility and fail to strictly direct the organization of payment and debt resolution in ministries, sectors, and localities.

Ministers, heads of government agencies, Chairpersons of People's Committees of provinces and centrally governed cities need to urgently develop specific implementation plans for this Directive in their respective sectors and localities, and report the results monthly to the Prime Minister./.