DECISION

On Credit packages for EX-CONVICTS

Pursuant to the Law on Governmental Organization dated June 19, 2015; Law on amendments to the Law on Governmental Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to Law on Public Investment dated June 13, 2019;

Pursuant to the Law on Execution of Criminal Judgments dated June 14, 2019;

Pursuant to Decree No. 78/2002/ND-CP dated October 04, 2002 of the Government on credit packages for the poor and other beneficiaries;

Pursuant to Decree No. 49/2020/ND-CP dated April 17, 2020 of the Government elaborating on certain Articles of the Law on Execution of Criminal Judgment in terms of community re-integration;

At the request of the Minister of Public Security;

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Article 1. Scope

This Decision provides for credit packages eligible for ex-convicts, businesses hiring employees who are ex-convicts and eligible for taking loans from Vietnam Bank for Social Policies for occupational training provision, manufacture, trading and job creation.

Article 2. Regulated entities

1. Vietnam Bank for Social Policies (VBSP).

2. Borrowers who are organizations and individuals eligible for taking loans prescribed in Clause 1 Article 3 hereof.

3. Other relevant organizations and individuals.

Article 3: Eligible entities and conditions

Eligible entities and lending requirements include:

1. Eligible entities

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b) Businesses including small and medium enterprises, cooperatives and household businesses employing employees who are ex-convicts.

2. Lending requirements

a) Ex-convicts: wish to take loans; are named in the list of ex-convicts residing locally, well abide by regulations of law, do not participate in social evils, are confirmed by the Commune-level police authorities and the Commune-level People's Committees using Form No. 01 enclosed herewith. The loan must be taken within 05 years from the date of release from prison;

b) Businesses: are legally established and operated under regulations of law; use at least 10% of the total number of employees who are ex-convicts meeting the requirements specified in Point a of this Clause and sign employment contracts according to regulations of labor law; have borrowing plans certified by the commune-level People’s Committees in which such borrowing plans are implemented using Form No. 02 hereof.

3. Ex-convicts and businesses prescribed in Clause 1 and Clause 2 of this Article must have fully paid their loans granted by other credit programs serving the same purpose according to regulations of law.

Article 4. Lending methods

1. As for ex-convicts

a) Loans shall be granted to the ex-convicts' households. Representatives of ex-convicts’ households are individuals who are responsible for bank loans and carry out banking transactions with the VBSP. If all of the other members of households are under 18 years old or lose their work capacity or have limited civil act capacity according to regulations of law, ex-convicts shall directly apply for and be responsible for their bank loans at the VBSP.

b) The lending VBSP shall authorize socio-political organizations to grant loans to ex-convicts.

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The lending VBSP shall grant loans to businesses without intermediaries (following direct lending).

Article 5. Purposes of loans

1. Regarding to bank loans for vocational education

Education and living costs of ex-convicts during their education at universities (or equivalents), colleges, professional secondary schools and vocational education and training institutions which have been established and operated as prescribed in Vietnamese Law include: tuition fees, expenses for books and learning materials, expenses for food, accommodation and travel.

2. Regarding to bank loans for manufacturing, trading and job creation

Expenses for manufacturing, trading and job creation include expenses for performance thereof.

Article 6. Loan amounts

1. Regarding to bank loans for vocational education

The maximum amount of bank loans shall be VND 04 million/month/ex-convict.

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a) As for ex-convicts: the maximum amount of bank loans shall be VND 100 million/ex-convict;

b) As for businesses: the maximum amount of bank loans shall be VND 02 billion per project and VND 100 million per employee for the business.

Article 7. Currency

Loans shall be granted and repaid in VND.

Article 8. Loan term

1. Regarding to bank loans for vocational course

a) Loan term shall be from the date on which an ex-convict starts to receive bank loans to the date on which all of his/her debts and interests are completely paid. The loan term includes loan disbursement period and debt repayment period;

b) The loan disbursement period shall be from the date on which an ex-convict receives the first amount of bank loans to the date on which the vocational course ends, including the period that the ex-convict is permitted to have days off for a limited period of time and to maintain his/her learning period (if any);

c) The debt repayment period shall be divided into multiple instalments prescribed by the VBSP as follows:

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As for other training programs, the maximum loan term shall be equal to the loan disbursement period.

2. Regarding to bank loans for manufacturing, trading and job creation

The maximum loan term shall be 120 months. A specific loan term shall be considered and decided by the VBSP to make an agreement with each borrower on the basis of their capital, manufacturing/business cycle and solvency.

Article 9. Loan interest rates

1. The loan interest rates shall be equal to those for poor households according to applicable laws.

2. The interests on late payment shall equal 130% of the loan interest rates.

Article 10. Loan security

1. Ex-convicts taking out loans for vocational courses, manufacturing, business and job creation shall not be required to have loan security.

2. Businesses wishing to take out loans of over VND 100 million must provide loan security in accordance with regulations of law and the VBSP on guarantee of loan obligations.

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1. Financial sources from annual local government budgets entrusted to the VBSP for giving loans.

2. Subsidies on interest rate differences and management fees granted by the State budget mobilized by the VBSP in accordance with regulations.

3. Other financial sources.

Article 12. Debt classification, settlement of bad debts

Regulations on debt classification and settlement of bad debts at the VBSP shall be applied.

Article 13. Loan application, lending procedure, instalments, repayment amounts, deferral, overdue debts to be carried forward

1. The VBSP shall provide guidance on loan application, lending procedure, amortization schedules and repayment amounts in a simple, clear and easy manner.

2. Debts shall be deferred and carried forward according to regulations of law.

Article 14. Implementation

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2. The Ministry of Public Security

a) Direct detention centers to disseminate policies specified herein;

b) Direct police authorities of provinces and districts to cooperate with departments and local authorities and districts and relevant authorities of provinces in counseling the People's Councils and the People’s Committees of provinces and districts to allocate financial sources from local government budgets entrusted to the VBSP for giving loans to ex-convicts. Closely cooperate with the VBSP during the supervision of grant of loans and debt recovery;

c) Direct police authorities of communes to, on the 5^th of every month, prepare and provide lists of ex-convicts wishing to and qualified for taking out bank loans (using Form No. 01 enclosed herewith) to the VBSP as the basis for granting loans;

d) Take charge and cooperate with ministries, central authorities, relevant authorities and the VBSP in organization and implementation of this Decision; propose handling of issues arising and difficulties during the implementation thereof and amendments to this Decision (if necessary).

3. The Ministry of National Defense

Direct detention centers affiliated to the Ministry of National Defense to disseminate policies specified herein.

4. The VBSP

a) Provide guidance on the contents specified in Article 13 herein;

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c) Cooperate with ministries and central authorities in submitting reports to competent authorities for promptly solving difficulties during the lending period in accordance with regulations herein.

5. Ministries, ministerial agencies, Governmental agencies shall cooperate with the Ministry of Public Security, the Ministry of National Defense and the VBSP during the implementation of this Decision under their jurisdiction.

6. The People’s Committees of provinces and districts

a) Annually consider allocation of local government budgets entrusted to the VBSP for giving loans in accordance with regulations of law;

b) Direct departments, local authorities and relevant units to propose to competent authorities to approve and entrust annual local government budgets to the VBSP for giving loans;

c) Direct the People’s Committees of communes to confirm the borrowers' eligibility for receiving policies specified in Article 3 hereof;

d) Cooperate with Vietnamese Fatherland Front, socio-political organizations and the VBSP in disseminating policies; organize and supervise the implementation of this Decision.

Article 15. Handling of violations

Any agencies, organizations and individuals taking advantages of the policies herein to seek profits and violate laws shall, depending on the nature, severity of violations, provide compensations and face administrative penalties or criminal prosecutions as prescribed by law.

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1. This Decision comes into force from October 10, 2023.

2. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of the People’s Committees of provinces and central-affiliated cities, Presidents of the Board of Directors and General Directors of the VBSP are responsible for implementation of this Decision.

PRIME MINISTER




Pham Minh Chinh