Joint Circular No. 35 TT/LB guiding the implementation of the Chairman of the Council of Ministers' decision on writing off debts for loans from the Bank.

JOINT CIRCULAR

Guidelines for Implementing the Chairman's Decision of the Council of Ministers on Waiving Bank Debts

On April 20, 1991, the Chairman  of the Council of Ministers issued Decision No. 131/CT regarding the waiver of bank debts for economic units severely damaged by typhoons and floods in 1989.

The Ministry of Finance and the State Bank of Vietnam provide guidance on implementing Decision No. 131/CT as follows:

1. Based on the specific amounts approved by the Chairman of the Council of Ministers to waive principal debts for economic units in provinces such as Thanh Hoa, Nghe An, Quang Binh, Quang Tri, Thua Thien Hue, Quang Nam-Da Nang, Quang Ngai, and in ministries such as Transportation and Posts and Telecommunications, Agriculture and Food Industry, Construction, Forestry, and Commerce at Decision No. 131/CT dated April 20, 1991, the Ministry of Finance will transfer funds to each province and ministry according to Decision No. 131/CT.

2. The State Bank of Vietnam will transfer the amount of 45 billion dong permitted by the Chairman of the Council to be issued for this purpose under Decision No. 323/CT dated September 6, 1990, into account 730 002 of the National Treasury Office at the State Bank of Vietnam in Hanoi for the Ministry of Finance to allocate to the provinces and ministries listed in item 1 above.

3. The Chairman of the People's Committee of the province, with the assistance of financial agencies, provincial banks, and the management agencies of the economic units within the scope of this treatment, and the Minister in charge, with the assistance of the Financial Accounting Department and in coordination with specialized financial management departments of the Ministry of Finance within the approved amount and based on the contents of signed inspection reports, shall be responsible for reviewing and approving the amount to be allocated to each economic unit to repay bank loans, strictly prohibiting the use of allocated funds for other purposes.

4. Simultaneously with the review and approval of allocations to each economic unit, the Provincial People's Committee and the Ministry in charge shall examine and verify the specific handling of the following two cases:

a. Economic units that have been fully or partially compensated for losses caused by natural disasters from budget sources or capital derived from the budget to repay bank loans, now do not need to repay the bank a second time the amount already paid. At the same time as approving compensation for natural disasters, the budget funds previously provided must be recovered. This recovered amount shall be handled as follows: either returned to the state budget or reallocated entirely or partially to replenish working capital for the unit if, upon inspection and analysis, it is found that the unit genuinely lacks working capital.

b. Economic units that have repaid part or all of the bank loan losses due to natural disasters from before the date of the Council of Ministers' decision to handle this matter until now, using new loans to repay old debts from the bank, must use this handling fund to repay the bank (not to repay old debts a second time but to repay new debts); or have occupied capital or borrowed from other economic units, or used production and business capital to repay the bank... these units do not need to repay the bank a second time the amount already paid, but can use this amount to settle with the units whose capital was occupied or repay other units, or supplement their production and business capital.

5. The People's Committees of the provinces and ministries listed in item 1 above need to compile and report the results of reviews and handling according to the guidelines of this circular to the Ministry of Finance and the State Bank of Vietnam no later than the end of July 1991 for consolidation and reporting to the Chairman of the Council of Ministers.