Circular No. 85/2002/TT-BTC guiding the implementation of Decree No. 69/2002/NĐ-CP dated July 12, 2002 of the Government on management and settlement of overdue debts for state-owned enterprises

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER 85/2002/TT-BTC DATE SEPTEMBER 26, 2002
GUIDELINES FOR IMPLEMENTING DECREE NUMBER 69/2002/NĐ-CP
DATE JULY 12, 2002 OF THE GOVERNMENT ON MANAGEMENT AND SETTLEMENT OF OVERDUE DEBTS
FOR STATE ENTERPRISES

Implementing Decree No. 69/2002/NĐ-CP dated July 12, 2002 of the Government on management and settlement of overdue debts for state enterprises, the Ministry of Finance provides detailed guidance as follows:

A/ GENERAL PROVISIONS

1. Objects:

1.1. State-owned enterprises operating independently and state-owned member enterprises operating independently under state-owned holding companies that are currently engaged in business activities or public services (hereinafter referred to collectively as operating enterprises).

Commercial banks under the state shall have separate regulations.

1.2. State-owned enterprises that have received decisions from competent state authorities to implement shareholding reform, transfer, sell, lease, or convert into limited liability companies and are currently undergoing conversion procedures (hereinafter referred to collectively as converting enterprises).

2/ SCOPE OF SETTLEMENT:

2.1. For operating enterprises: the scope of settlement includes overdue receivables and payables that were past due as of December 31, 2000, which the enterprise has verified, urged payment for but still remain outstanding up to the present.

2.2. For converting enterprises: the scope of settlement includes overdue receivables and payables that were past due, which the enterprise has verified, urged payment for but remain outstanding at the time of conversion.

B/ SPECIFIC PROVISIONS

I/ SETTLEMENT OF RECEIVABLES WITHOUT RECOVERY CAPABILITY:
1/ CRITERIA FOR IDENTIFYING RECEIVABLES WITHOUT RECOVERY CAPABILITY:

To identify receivables without recovery capability as stipulated in Clause 1, Article 5 of Decree No. 69/2002/NĐ-CP of the Government, the following documents are required:

On the basis of 1.1. Documents proving the existence of overdue receivables up to December 31, 2000 (for operating state enterprises) and up to the date of debt settlement or conversion (for converting enterprises) that have not been recovered include: Memorandum of account reconciliation confirmed by both creditor and debtor, economic contract liquidation statement, confirmation by the authority deciding the establishment of the enterprise or organization, or other objective documents proving the existence of overdue receivables and related documents.

1.2. Accounting books, vouchers, and documents proving unrecovered receivables, which the enterprise continues to record as receivables on its accounting books at the time of debt settlement.

1.3. Documents proving receivables that are overdue or not yet overdue and fall into one of the following categories are considered receivables without recovery capability:

1.3.1 For receivables where the debtor is a dissolved or bankrupt enterprise or organization:

- Decision or notice of dissolution issued by the authority establishing the enterprise or organization, or bankruptcy decision of the court (a copy with signature and stamp of the enterprise - hereinafter referred to as a copy). In cases of self-dissolution, there must be a notice from the enterprise or confirmation from the authority establishing the enterprise or organization;

- For operating enterprises, additional documents proving that the debtor enterprise or organization has completed dissolution or bankruptcy but has not fully settled the debt to the enterprise: confirmation from the authority establishing the enterprise or organization or the court handling the bankruptcy case.

1.3.2 For debtors who have ceased operations and are unable to pay: Confirmation from the authority establishing the enterprise or organization regarding the cessation of operations and inability to pay by the enterprise or organization.

1.3.3 For debtors who are individuals who have died, disappeared, are serving a prison sentence, or heirs according to the law, but are unable to pay as determined by the court:

- For deceased individual debtors, death certificate (copy) or confirmation of death by local authorities;

- For missing individual debtors: declaration of disappearance by the court (copy) or confirmation by local authorities;

- For individual debtors who have fled their locality: warrant for arrest issued by the police (copy) or confirmation by village or ward police;

- For individual debtors who are serving a prison sentence: copy of the judgment enforcing the prison sentence by the court, court ruling (copy), or confirmation by local authorities that the debtor or heir is unable to pay.

1.3.4 For debtors who are dissolved agricultural cooperatives, agricultural cooperatives that have been converted and registered for business operations under Decree No. 16/CP dated February 12, 1997 of the Government but face severe financial difficulties, incur losses and are unable to repay debts, and operational agricultural cooperatives that have used these funds for infrastructure investment but now suffer damage due to natural disasters and are allowed by the state to write off the debt. Proof documents include the debt settlement file according to Circular No. 31/2002/TT-BTC dated March 29, 2002 of the Ministry of Finance or the decision of the competent authority to write off the debt for the cooperative (copy).

1.3.5 For receivables where the debtor has been decided by the competent authority to write off the debt according to the law: Copy of the decision of the competent authority to write off the debt for the debtor according to the law. 1.3.6 For the remaining difference of unrecovered receivables after personal and collective responsibility for material compensation has been processed: Decision on debt settlement by the Board of Directors or Minutes of debt settlement by the Enterprise Debt Settlement Council or decision by the enterprise director to process personal and collective responsibility for material compensation (copy).

1.3.7 The loss amount accepted by the competent authority through the sale of receivables: File of receivables and Purchase and Sale Contract of receivables (copy).

1.3.8 Receivables where the estimated cost of collection exceeds the value of the receivable: Urgent payment notices, estimated collection costs of the enterprise, Minutes of debt settlement by the Enterprise Debt Settlement Council (copy).

1.3.7 The difference in loss accepted by the competent authority due to selling receivables: Documentation of the receivable debt and the Purchase and Sale Agreement of the receivable debt (copy).

1.3.8 Receivables where the estimated collection costs exceed the value of the receivable: Collection letters, the enterprise's estimated collection costs, and the Minutes of the Enterprise Debt Settlement Council on handling the receivables (copies).

1.3.9 Debts receivable that have exceeded the payment deadline for three years or more since their due date, although the debtor still exists and is operating, but has been continuously losing money and is in extreme difficulty, completely unable to pay, and the enterprise has actively applied measures but still cannot collect the debt: Documents proving the outstanding debt that has been overdue for three years or more and has not been collected up to the time of handling the debt; urging documents for debt collection issued by the enterprise; financial reports of the debtor that have been audited (if available) or confirmed by the agency deciding on the establishment of the enterprise regarding the financial status of the enterprise. concerning the financial status of the enterprise.

2/ Financial treatment for uncollectible debts receivable

2.1. For state-owned enterprises that are currently operating, debts receivable that are overdue or not yet overdue but have sufficient grounds to be determined as uncollectible debts according to the provisions of Clause 1, Section I mentioned above shall be handled using the following sources in order:

2.1.1 Using the reserve fund for difficult-to-collect receivables to offset. provision for difficult-to-collect receivables to offset.

2.1.2 If the reserve fund for difficult-to-collect receivables is insufficient to offset, the enterprise may record the shortfall as part of its business operation expenses.

2.1.3 In cases where the enterprise records the shortfall as part of its business operation expenses for two consecutive years and incurs losses that it is unable to cover, and the enterprise does not fall under the circumstances requiring dissolution or bankruptcy, the enterprise must prepare a report and submit it to the competent authority for examination and decision to reduce the state capital at the enterprise according to the regulations below:

a) The procedures and documents include:

- A document proposing the reduction of capital from the enterprise, detailing the handling of uncollectible debts receivable according to Paragraphs 2.1.1 and 2.1.2 of this Article, and explaining the difficulties of the enterprise that it is unable to self-cover the loss caused by handling these debts.

- Documentation and evidence proving each uncollectible debt receivable according to the provisions of Clause 1, Section I, Part B of this Circular.

- Financial reports, minutes of financial report reviews, and settlement tax minutes (if applicable) of the enterprise in the year of proposed handling and the immediately preceding year (copies).

- A document from the Ministry managing the industry, People's Committee of provinces and centrally-run cities, or State Corporation (hereinafter referred to as the superior management agency) recommending the reduction of capital for the enterprise.

b) The authority responsible for examining and deciding on the reduction of capital for the enterprise:

- For independent-accounting enterprises that are members of state-owned corporations and independent-accounting enterprises under ministries, ministerial-level agencies, or government agencies or decided by the Prime Minister to establish (hereinafter referred to as central enterprises), they should submit the documents and materials to the Enterprise Finance Department for examination and submission to the Minister of Finance for decision.

- For independent-accounting enterprises that are members of state-owned corporations and independent-accounting enterprises established by provincial or centrally-run city people's committees (hereinafter referred to as local enterprises), they should submit the documents and materials to the Provincial Department of Finance and Prices for examination and submission to the provincial or centrally-run city people's committee for decision.

2.1.4 In cases where the enterprise incurs losses due to handling uncollectible debts receivable according to Paragraphs 2.1.1, 2.1.2, and 2.1.3 of this Article, but the enterprise does not fall under the circumstances requiring dissolution or bankruptcy, and needs to remain a wholly state-owned enterprise according to the Comprehensive Plan for the Restructuring, Modernization, and Development of Enterprises during the period 2002-2005 approved by the Prime Minister, with an effective business plan approved by the competent authority, then the enterprise should submit a report along with the documents and materials to the Enterprise Finance Department for consideration and submission to the Minister of Finance for decision on providing support capital from the cost of state enterprise reform according to Decision 92/QD-TTg dated January 29, 2002 of the Prime Minister to fully cover the losses and ensure the initial capital of the enterprise.

The procedures and documents include:

- A document from the enterprise requesting support capital or handling remaining losses, detailing the handling of uncollectible debts receivable according to Paragraphs 2.1.1, 2.1.2, and 2.1.3 of this Article, the remaining losses, and the requested support capital.

- Documentation and evidence proving each uncollectible debt receivable according to the provisions of Clause 1, Section I, Part B of this Circular.

- Financial reports, minutes of financial report reviews, and settlement tax minutes (if applicable) of the enterprise in the year of proposed handling and the immediately preceding year (copies).

- The decision on reducing state capital at the enterprise made by the competent authority.

- An approved effective business plan.

- A document from the superior management agency recommending the handling of remaining losses and providing support capital to the enterprise.

2.2. For state-owned enterprises undergoing conversion, uncollectible debts receivable shall be handled using the following sources in order:

2.2.1 Using the reserve fund for difficult-to-collect receivables to offset.

2.2.2 If the provision for difficult-to-collect receivables is insufficient to offset, the enterprise may account for the entire remaining amount as operating expenses before conversion.

2.2.2 If the reserve fund for difficult-to-collect receivables is insufficient to offset, the enterprise may record the entire shortfall (handled in one go) as part of its business operation expenses before conversion.

2.2.3 In cases where the enterprise incurs losses after handling uncollectible debts receivable according to Paragraph 2.2.2 of this Article, or if the enterprise has incurred losses before handling the debts, the following actions will be taken:

a) For state-owned enterprises undergoing shareholding, sale, or transfer to labor collectives, they must present evidence proving uncollectible debts receivable according to Clause 1, Section I, Part B of this Circular and related documents to the Board of Value Determination of the enterprise or the auditing company or organization with valuation functions selected to examine and report to the competent authority for decision to deduct from the state capital at the enterprise according to current regulations. b) For state-owned enterprises

undergoing business contracting, leasing, or converting to a limited liability company, they must prepare a report and submit it to the competent authority for examination and decision to reduce the state capital at the enterprise.

- The procedures include:

+ A document proposing the reduction of capital from the enterprise, clearly stating the reasons and the amount of capital requested to be reduced.

+ Financial reports, minutes of financial report examination, and Settlement Tax Minutes (if any) of the enterprise for the year requested for handling and the immediately preceding year (copies).

+ Document from the superior management agency proposing to reduce capital for the enterprise.

- The authority responsible for examining and deciding on the reduction of capital for the enterprise:

+ For centrally-managed enterprises: submit the dossier and documents to the Enterprise Finance Department for examination, and submit to the Minister of Finance for decision on reducing state capital at the enterprise.

+ For local enterprises: submit the dossier and documents to the Provincial Department of Finance and Prices for examination, and submit to the People's Committee of the province or centrally-administered city for decision on reducing state capital at the enterprise.

2.2.4 For state-owned enterprises implementing shareholding reform, if the value of the state capital at the enterprise is insufficient to cover accumulated losses and unrecoverable debts, or after reducing the value of the state capital at the enterprise, the remaining value is insufficient to ensure the required state capital participation in the joint-stock company according to the approved plan (as stipulated in Decision No. 58/2002/QĐ-TTg dated April 25, 2002 of the Prime Minister on issuing criteria and classification lists for state-owned enterprises and state-owned corporations), then the enterprise shall have a document requesting accompanied by relevant dossiers sent to the Enterprise Finance Department for consideration, and submitted to the Minister of Finance for decision on transferring (selling at a designated price) certain receivable debts to organizations with the function of buying and selling debts and surplus assets. The difference arising from selling debts (if any) shall be handled by reducing state capital before conversion.

- Organizations with the function of buying and selling debts and surplus assets shall accept the debt, pay the enterprise according to the designated price (decided by the Minister of Finance), and continue to find ways to recover it. The difference between the value of the debt and the actual amount recovered by the organization with the function of buying and selling debts and surplus assets shall be supported by the Ministry of Finance from the business restructuring cost fund.

In cases of refusal, the State Bank will issue a document refusing approval to use foreign currency within the territory and clearly state the reasons.

- Document requesting handling from the enterprise, explaining clearly the reasons, the amount of capital requested to be reduced, the receivable debts proposed to be sold at a designated price (with a suggested designated price) to organizations with the function of buying and selling debts and surplus assets, the accumulated loss amount, the amount of unrecoverable debts, the state capital at the enterprise before handling, the capital needed to implement preferential policies when selling shares to employees within the enterprise, the state capital required to meet the proportion of state capital in the joint-stock company.

- Dossier and documents proving each unrecoverable receivable debt as specified in Clause 1, Section I, Part B of this Circular.

- Financial reports, minutes of financial report reviews, and settlement tax minutes (if applicable) of the enterprise in the year of proposed handling and the immediately preceding year (copies).

- Document requesting handling from the superior management agency and the agency that decided to establish the state-owned enterprise.

- Minutes determining the enterprise value before conversion by the Enterprise Valuation Council.

- Decision of the competent authority regarding the conversion of the state-owned enterprise (copy).

2.3. Handling of debts for enterprises implementing conversion shall be carried out synchronously with solutions together with the handling of existing issues of the enterprise before conversion as determined in the Enterprise Restructuring and Arrangement Plan.

2.4. Receivable debts that are unable to be recovered after being handled as mentioned above, state-owned enterprises or representatives of state capital owners at the enterprise must monitor and organize recovery:

- For operating state-owned enterprises, they must monitor on accounts outside the balance sheet indicators and organize recovery within five years. The recovered amount shall be recorded as income of the enterprise.

- For converted enterprises, after conversion, the representative of state capital owners at the enterprise has the responsibility to continue monitoring and organizing recovery of difficult-to-collect receivables that were processed before conversion but still have the potential to be recovered. The recovered money, after deducting recovery costs, shall be deposited into the Fund for Supporting Business Restructuring and Shareholding Reform or transferred to the organization with the function of buying and selling debts and surplus assets according to the decision of the competent state authority to continue monitoring and organizing recovery into the state budget. pending according to the decision of the competent state agency for continued monitoring and organizing recovery into the state budget.

II. HANDLING OF OUTSTANDING DEBTS
OF THE ENTERPRISE

1. Tax debts and other amounts payable to the State budget:

1.1. Resolution on investment capital support:

Enterprises with investment projects as specified in Clauses 1 of Article 11 of Decree No. 69/2002/NĐ-CP shall implement in accordance with the guidance provided in Section III, Part B of Circular No. 32/2002/TT-BTC dated April 10, 2002 of the Ministry of Finance guiding the implementation of Decision No. 172/2001/QĐ-TTg dated November 5, 2001 of the Prime Minister (hereinafter referred to as Circular No. 32/2002/TT-BTC).

1.2. Resolution on debt write-off:

1.2.1 Enterprises falling under the categories specified in Clauses 2, 3, and 6 of Article 11 of Decree No. 69/2002/NĐ-CP shall implement in accordance with Point 1, Section IV, Part B of Circular No. 32/2002/TT-BTC.

1.2.2 Enterprises falling under the category specified in Clause 4 of Article 11 of Decree No. 69/2002/NĐ-CP shall implement in accordance with Clause 2, Section IV, Part B of Circular No. 32/2002/TT-BTC.

1.2.3 Enterprises falling under the category specified in Clause 5 of Article 11 of Decree No. 69/2002/NĐ-CP shall implement in accordance with Clause 3, Section IV, Part B of Circular No. 32/2002/TT-BTC.

1.2.4 Enterprises receiving advance payments from the State budget to purchase goods for export repayment of foreign debts, or to establish a national reserve fund or circulating reserve fund, but due to price fluctuations, the enterprise was unable to purchase sufficient goods as prescribed, thus recording a debt payable to the State budget. If such debt has been declared and confirmed by the provincial or centrally-administered city debt settlement board or the economic sector ministry, it can be written off.

Enterprises falling under this category must provide a document explaining clearly the amount of debt, the cause of the debt, along with related documents concerning the declared debt and confirmation by the provincial or centrally-administered city debt settlement board or the economic sector ministry.

The dossier shall be submitted to the Enterprise Finance Department for review and submitted to the Minister of Finance for decision on writing off the debt for the enterprise due to the aforementioned reasons.

1.2.5 Enterprises that owe the State budget for imported goods according to the Government's Protocol due to selling goods on credit to units as directed and regulated by competent authorities, and have not been able to collect the debt up to now shall prepare a statement clearly explaining the reasons for not being able to collect the money, along with relevant documents related to the sale on credit, and send them to the Enterprise Finance Department for examination, and submit to the Minister of Finance for a decision to write off the debt.

Enterprises importing goods according to the Protocol but having to sell at prices lower than those received from the State due to the goods not meeting market requirements, thereby incurring losses that have not yet been addressed, shall prepare a request letter, along with relevant documents, and send them to the Enterprise Finance Department for examination, and submit to the Minister of Finance for a decision to write off the debt.

2/ Debts owed to State Commercial Banks

The handling of debts that state enterprises must pay to State Commercial Banks shall be carried out in accordance with the provisions of Article 12 of Decree No. 69/2002/ND-CP. and guidance provided by the Governor of the State Bank of Vietnam pursuant to Clause 3, Article 18 of Decree No. 69/2002/ND-CP.

3/ Debts owed to the National Reserve

3.1. State enterprises owing debts to the National Reserve as stipulated in Clause 1, Article 13 of Decree No. 69/2002/ND-CP shall be handled as follows:

3.1.1 Debts arising from advance payments for purchasing rice, receiving processing of rice for export, borrowing rice from the National Reserve during the years 1988-1990, where the enterprise has paid the full amount of the advance payment or has paid the full amount based on the purchase price at the time of borrowing, but when converted to quantity based on the price at the time of repayment there is still a debt remaining, such debt shall be written off.

3.1.2 The price of rice for handling and settling debts to the National Reserve Fund shall be applied according to the agricultural tax price at the time of borrowing, as confirmed and recognized until the time of settlement, as decided by the People's Committee of the province or centrally-administered city.

3.2. Documentation:

- Documents proving the debt owed to the National Reserve from 1988-1990 to the present: Economic contracts, contract appendices, application forms for advance payments, loan applications, relevant import, export, receipt, and payment documents related to the debt to the National Reserve, and other commitment documents.- Debt confirmation card signed and stamped by the enterprise and

the National Reserve Management Bureau (or Branch). - Debt reconciliation record signed and stamped by the creditor and debtor.

- Decision on agricultural tax price at the time of borrowing and debt, issued by the People's Committee of the province or centrally-administered city.

The authority responsible for examining and deciding to write off the debt for the enterprise:

3.3. The enterprise shall submit a request letter along with the documentation report to the National Reserve Management Bureau for examination, and submit to the Minister of Finance for a decision to write off the debt.

4/ Debts owed to Social Insurance

4.1 For state enterprises currently operating: must take responsibility for fully settling the debt to Social Insurance.

4.2 For state enterprises undergoing restructuring: before restructuring, they must take responsibility for fully settling the debt to Social Insurance. The funds for paying off the Social Insurance debt must be arranged in the restructuring plan of the enterprise. The State will provide support in two cases:

- Supporting social insurance contributions for workers who have reached retirement age but are short of up to one year of contributions as stipulated in Clause 2, Article 3 of Decree No. 41/2002/ND-CP dated April 11, 2002 of the Government regarding policies for surplus labor due to the reorganization of state-owned enterprises.

The procedures and formalities for support are implemented in accordance with Circular No. 11/2002/TT-BLDTBXH dated June 12, 2002 of the Ministry of Labor, Invalids, and Social Affairs and Decision No. 85/2002/QD-BTC dated July 1, 2002 of the Minister of Finance.

- For state enterprises undergoing restructuring through the sale of the enterprise as prescribed in Decree No. 103/1999/ND-CP dated September 10, 1999 and Decree No. 49/2002/ND-CP dated April 24, 2002 of the Government, if the buyer does not assume the debt, then the selling enterprise may prioritize using proceeds from the sale of the enterprise (after deducting costs for the sale of the enterprise) to settle the Social Insurance debt outstanding up to the date of the sale of the enterprise, as stipulated in Circular No. 47/2000/TT-BTC dated May 24, 2000 of the Ministry of Finance.

If the proceeds from the sale of the enterprise are insufficient to settle the Social Insurance debt, the enterprise shall prepare a dossier to be submitted to the State Enterprise Restructuring and Shareholding Support Fund at the same level for assistance in settling the remaining debt. The procedures and formalities for support are implemented in accordance with the Regulation on the management, collection, and use of the State Enterprise Restructuring and Shareholding Support Fund issued by the Minister of Finance.

5/ Debts owed to organizations and individuals

For state enterprises that have a decision to become joint-stock companies, when implementing the transformation and having debts owed to organizations and individuals inside and outside the enterprise, if the enterprise encounters difficulties or has a need to raise additional capital, restructure debt and obtain the consent of the creditors, they can convert the debt into share capital in the transformed joint-stock company in accordance with Point 3.6, Clause 3, Section II, Part Two of Circular No. 76/2002/TT-BTC dated September 9, 2002 of the Ministry of Finance guiding financial issues when transforming state-owned enterprises into joint-stock companies.

6/ Other debts of operating enterprises

6.1. Enterprises importing goods according to directives from competent state agencies but having inventory buildup and unsold goods shall be liquidated. The liquidation process shall be carried out in accordance with the law.

Losses

resulting from the liquidation of inventory buildup and unsold goods, the enterprise shall prepare a dossier to report to the competent authority for examination and decision to reduce state capital in the enterprise. 6.1.1 Documentation: - Relevant documents and directives from competent state agencies requiring the enterprise to import goods.

- Import documentation proving that the enterprise has imported the goods according to the directive of the competent state agency.

- A report from the enterprise requesting a reduction in state capital, explaining the import of goods according to the directive of the competent state agency, the import process, sales, and unsold inventory buildup.

- Documentation proving the inventory buildup and unsold goods at the time of debt settlement.

- Liquidation sale documentation of inventory buildup and unsold goods.

- Settlement documentation of liquidation of inventory buildup and unsold goods.

- Documentation of liquidation sale of inventory stock and overstock.

- Final settlement of liquidation of inventory stock and overstock.

- Opinion opinion of the superior supervisory authority.

6.1.2 The agency responsible for reviewing and deciding to reduce capital for enterprises:

- For centrally-managed enterprises: submit files and documents to the Enterprise Finance Department for review, and submit to the Minister of Finance for a decision to reduce state capital in the enterprise.

- For local enterprises: submit files and documents to the Provincial Department of Finance and Prices for examination, and submit to the People's Committee of the province or centrally-administered city for decision on reducing state capital at the enterprise.

6.2. Enterprises that undertake foreign borrowing to import goods according to the directive of the competent state agency or according to the State plan assigned, if there is a discrepancy in foreign exchange rates between the time of borrowing for import and the time of repayment causing the enterprise to suffer losses and be unable to repay the debt, then the enterprise shall submit a report along with relevant documents to the Enterprise Finance Department for consideration, and submit to the Minister of Finance for a decision to support the enterprise with the discrepancy in foreign exchange rates to enable the enterprise to repay the debt, but not exceeding the amount of loss of the enterprise that has not been resolved.

Documents and materials:

- The enterprise's report requesting support for the aforementioned foreign exchange rate discrepancy, explaining the import of goods according to the directive of the competent state agency, the import process, consumption, and the discrepancy in foreign exchange rates between the time of borrowing for import and the time of repayment causing the enterprise to suffer losses and be unable to repay the debt.iểm repayment causing the enterprise to suffer losses and be unable to repay the debt.

- Relevant documents and directives from the competent state agency requiring the enterprise to import goods or the State plan assigning import targets to the enterprise.

- Documentation proving the inventory buildup and unsold goods at the time of debt settlement.

- Documents and materials proving the discrepancy in foreign exchange rates between the time of borrowing for import and the time of repayment causing the enterprise to suffer losses and be unable to repay the debt.

- Final reports of related years concerning the consumption of the imported consignment.

- Opinion opinion of the superior supervisory authority.

C/ IMPLEMENTATION PROVISIONS

Ministries, sectors, People's Committees of provinces and cities shall direct subordinate units to guide enterprises to review and classify outstanding debts for resolution in accordance with the provisions of Decree No. 69/2002/NĐ-CP and the guidance provided in this Circular.

This Circular takes effect from July 27, 2002. During implementation, if there are difficulties, agencies and enterprises are requested to reflect them to the Ministry of Finance for research and resolution.