DECISION

ON THE LENDING TO WORKERS WHO GO AND WORK ABROAD FOR A CERTAIN PERIOD OF TIME

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam and Law on the Credit Institutions dated 12 December, 1997;
Pursuant to the Decree No. 15 CP dated 02 March, 1993 of the Government on the assignment, authority and responsibility for the State management of the ministries and ministerial-level agencies;
Pursuant to the Decree No. 152/1999/ND-CP dated 20 September, 1999 of the Government provides for Vietnamese workers and experts who go and work abroad for a certain period of time;
Based on the direction of the Prime Minister stated in the Dispatch No. 1113/CP-KTTH dated 4 December, 2000 on the lending to workers who go and work abroad for a certain period of time;
In agreement with the Ministry of Planning and Investment, Ministry of Finance and the Ministry of Labour, War Invalid and Social Affairs;
Upon the proposal of the Director of the Monetary Policy Department,

DECIDES

Article 1. Governing scope

Commercial banks shall lend in VND and foreign currency to workers and experts who go and work abroad for a certain period of time (hereinafter generally referred to as workers) in following forms:

1. Lending through the Vietnamese enterprises that engage in contracts, sub-contracts for construction project or in a joint-venture, partnership with foreign parties on the product sharing basis and investment abroad.

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3. In accordance with the labour contracts which are directly entered into between individual workers and labour employers in foreign country.

Article 2. Subject of application

1. Commercial banks shall be entitled to lend to all workers who go and work abroad for a certain period of time. State owned commercial banks shall lend without asset security to workers of priority under current policy who go and work abroad for a certain period of time in accordance with paragraph 3 of this Article.

2. Commercial banks shall lend to workers who go and work abroad for a certain period of time (who have entered into the labour contract directly or through enterprises referred to in paragraph 1 and 2 Article 1 of this Decision, irrespective whether they are of priority under current policy or not) through the family households that have those workers, except for the case that workers who go and work abroad for a certain period of time abroad are single, where commercial banks shall lend directly to workers.

3. Workers of priority under current policy who go and work abroad for a certain period of time shall include:

- Wife (husband), children of revolutionary martyrs;

- Wounded soldiers (including wounded soldiers of B level who had been confirmed before 31 December, 1993, hereinafter referred to as on-the-job accident soldiers), persons who can benefit from the policy for wounded soldiers and have lost their working capability from 21% upward (hereinafter referred to as wounded solders );

- Wife (husband), children of wounded soldiers;

- Children of arm-force heroes, labour heroes, children of persons who have joint the resistant war, persons who have made contribution to the revolution and honored with resistant medals, orders, children of revolutionary cadres who participated in the revolution prior to 8.1945;

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Article 3. Application of lending provisions

Commercial banks shall lend to workers who go and work abroad for the certain period of time in accordance with the Decree No. 152/1999/ND-CP dated 20 September, 1999 of the Government which provides for workers and experts going and working abroad for the certain period of time, the Regulation on lending by credit institutions to customers issued in conjunction with the Decision No. 284/2000/QD-NHNN1 dated 25 August, 2000 of the Governor of the State Bank of Vietnam, the Decision No. 418/2000/QD-NHNN1 dated 21 September, 2000 of the Governor of the State Bank of Vietnam on the objects of lending in foreign currency by credit institutions, provisions of this Decision and other related legal documents.

Article 4. Lending funds

Commercial banks shall use their self-mobilized funds to lend to workers who go and work abroad for the certain period of time.

Article 5. Subjects of lending

Commercial banks shall lend for financing necessary expenditures, fees required for workers going and working abroad for the certain period of time in accordance with the contracts which were signed between them and Vietnamese enterprises which are authorized to send them to foreign countries or foreign labour employers:

1. Workers who go and work for the certain period of time abroad shall be entitled, through the labour supplying enterprises, to borrow for financing expenditures such as: advance security money; service fee, single airline ticket, training expense and other legal expense for satisfaction of their going and working abroad.

2. Workers who go and work abroad for the certain period of time in accordance with labour contracts entered into between them and the foreign employers shall be entitled to borrow for financing expenses such as: single airline ticket; training before going abroad; other lawful expenses for their going and working abroad.

3. Workers who go and work abroad for the certain period of time through Vietnamese enterprises that engage in contracts, sub-contracts for construction project or in a joint-venture, partnership with foreign parties on the product sharing basis and investment abroad, shall be entitled to borrow for financing expenses such as: single airline ticket, training expense and other lawful expenses for their going and working abroad.

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1. State commercial banks shall lend without asset security to workers of priority under current policy who go and work abroad for the certain period of time in accordance with paragraph 1 Article 2 of this Decision.

2. Workers other than those of priority under current policy who go and work abroad for the certain period of time shall perform measures of loan security by assets in accordance with the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government and the Circular No. 06/2000/TT-NHNN1 dated 4 April, 2000 of the Governor of the State Bank guiding the implementation of this Decree. Procedures of entering into a loan security contract and implementing this contract are as follows:

- For the loans made through the family households of workers who go and work abroad for the certain period of time abroad, the loan security contract shall be signed between representatives of family households and commercial banks;

- For loans directly made to single workers who go and work abroad for a certain period of time, loan security contracts shall be entered into between workers and commercial banks or between the party authorized by workers who go and work abroad for a certain period of time in accordance with applicable laws and commercial banks.

Article 7. Procedures of lending

1. Commercial banks shall lend on the basis of contracts which are entered into by workers who go and work abroad for a certain period of time and Vietnamese enterprises which are authorized to send workers abroad or foreign employers in accordance with the provisions of the Decree No. 152/1999/ND-CP dated 20 September, 2000 and credit files stipulated in Article 14 of the Regulation on lending by credit institutions to customers issued in conjunction with the Decision No. 284/2000/QD-NHNN1 dated 25 August, 2000.

2. Credit file for the workers other than those of priority under current policy who go and work for a certain period of time abroad shall include:

a. Documents proving the borrower is the Head of family household of workers who go and work abroad for the certain period of time in accordance with provisions of the applicable laws;

b. Borrowing application of the Head of a family household or workers who go and work abroad for a certain period of time (for the case of single workers);

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d. Loan security contract;

dd. Other necessary documents, which prove the satisfaction of conditions for borrowing.

3. Credit file for workers of priority under current policy who go and work abroad for a certain period of time shall include:

a. Documents proving that workers who go and work abroad for a certain period of time are those of priority under current policy as stipulated in paragraph 3 Article 2 of this Decision;

b. Documents stipulated in paragraph 2 of this Article, except for the loan security contract.

Article 8. Lending level

Commercial banks shall decide on the lending level on the basis of the funds requirement of workers who go and work abroad for a certain period of time, as stipulated in Article 5 of this Decision, the value of the loan security (for the workers other than those of priority under current policy who go and work abroad for a certain period of time), the repayment capacity of family households or workers and their funding source.

Article 9. Lending interest rate

Commercial banks and customers shall agree on the lending interest rate in accordance with the provisions provided for by the Governor of the State Bank from time to time.

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Commercial banks shall, based on the incomes, the repayment capacity of borrowing customers and their funding source, agree with their borrowers on the lending period which is not in excess of the time of contracts which are entered into by workers and Vietnamese enterprises which are authorized to send workers to foreign countries or foreign employers.

Article 11. Loans repayment

Commercial banks and family households with workers who go and work abroad for a certain period of time abroad shall agree on the loans repayment periods. In case that Vietnamese enterprises which are authorized to send workers to foreign countries can manage incomes of workers paid by foreign employers, commercial banks, workers and Vietnamese enterprises shall agree on the use of workers income by Vietnamese enterprises to directly pay to commercial banks.

Article 12. Organization of the implementation

1. This Decision shall be effective after 15 days from the date of signing.

2. Boards of Directors and General Managers (Managers) of commercial banks shall be responsible for guiding the implementation of this Decision.

3. Heads of units of the State Bank, General Managers of State Bank branches in provinces and cities under the central management shall be responsible for inspection, examination, and supervision of the implementation of this Decision by commercial banks, borrowing customers.

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