Docstoc

47

Document Sample
47 Powered By Docstoc
					  VIETNAM BANK FOR                   SOCIALIST REPUBLIC OF VIETNAM
   SOCIAL POLICIES                     Independence - Freedom - Happiness

    No: 1034/NHCS-TD
                                                               Hanoi, April 21st, 2008

                                   GUIDANCE
      On lending to policy beneficiaries working overseas for definite terms

     - Pursuant to the Charter of Organization and Operation of the Vietnam Bank
for Social Policies (VBSP) promulgated with the Decision No. 16/2003/QD-TTg
dated January 22nd2003 of the Prime Minister;
       - Pursuant to the Decision No. 365/2004/QD-NHNN dated April 13rd, 2004 of
the Governor of the State Bank of Vietnam on lending to policy beneficiaries
working overseas;
       The General Director of the Vietnam Bank for Social Policies (VBSP)
 provides the guidance on lending to policy beneficiaries working overseas for
 definite terms as follows:
       I. KEY CONTENTS AND CONCEPTS:
       1. Borrowers at VBSP:
       - Lending via households: Head of a household is the representative of the
 household to borrow from and make repayment to VBSP, they are either the mother
 or father or an adult representative of the household (from 18 years old) with
 verification of local commune People’s Committee.
       - In case the worker is single, he/she shall directly get a loan from and take
 responsibility for repayment to VBSP.
       2. Recruiter, including:
       2.1. Enterprises having licenses granted by the Ministry of Labor, War Invalids
 and Social Affairs to send workers work abroad for limited terms and
 representatives that such enterprises give authorization to recruit workers to go
 working abroad.
       2.2. Employers abroad.
       3. Workers: Employees to go working abroad for limited terms.
       4. Labor contract: Official contract signed between the recruiter and workers
 on working abroad for limited terms.
       5. Target clients:
       Policy beneficiaries eligible to borrow to work overseas for definite terms,
 including:
       5.1. Wives (husbands), children of revolutionary martyrs;
       5.2. War invalids (includes level B war invalids acknowledged from December
    st
 31 , 1993 and earlier, now called soldiers suffering from accidents at work); people
 enjoy preferential policy as for war invalids, people lose working capacity from
 21% and over (hereinunder called war invalids);
       5.3. Wives (husbands), children of war invalids;
       5.4. Children of heros of the people’s armed forces, heros of labor; children of
 people involved in the resistance war, people supporting the resistance war and

                                          1
 acknowledged with medals; children of people joining in the revolution before
 August 1945;
        5.5. Labors coming from poor households as stipulated by the Law.
        6. Legal residence of a borrower is a place where he/she lives regularly. In case
 borrower’s residence is unidentified under regulations, his/her residence is the
 current place of living certified by the commune People’s Committee on the loan
 application.
        7. Lending conditions:
        Borrowers must have enough the following conditions:
        7.1. Have legal residence at the locality where the lending VBSP locates.
        7.2. Have the certification from the local commune People’s Committee that
 borrowers are the policy beneficiaries. In case a borrower is not beneficiary of social
 welfares managed by the commune People’s Committee, he/she shall show certified
 documents (such as the war invalid card, certification, etc,.) for the commune
 People’s Committee to verify.
        7.3. Have formal acceptances of recruiters to go working abroad for limited
 terms.
        8. Loan size:
        Specific loan size for each overseas worker for definite terms is based on the
 loan demand of the target clients under recruitment contract, their repayment capacity
 and VBSP’s capital capacity but it is not over the maximum loan size under
 regulation of the VBSP’s Board of Directors at each period.
        (Currently, the Board of Directors of VBSP prescribes the maximum loan size
 is VND 30 million per an overseas worker).
        9. Loan term:
        Determination of loan terms depends on: working duration abroad stated in the
 labor contracts and repayment capacity of the borrowers but not exceed the working
 duration abroad in the labor contracts.
        10. Loan utilization:
        To pay for essential legal fees, expenditures to go working abroad according to
 contracts signed between recruiters and labors such as:
        - Training fees.
        - Contract counselling fees.
        - Deposits.
        - One-way ticket from Vietnam to the destination country.
        - Other necessary fees as stated in the labor contract.
        11. Lending interest rate:
        11.1. It is applied as lending interest rate for the poor households regulated by
 the Prime Minister at each period.
        (Currently, lending interest rate for the poor households is 0,65% per month).
        11.2. Overdue loans will be charged at the rate of 130% of the lending interest
 rate.
        12. Lending method:
       - Borrowers (including via households and directly in case the borrowers are
single) are free from collateral, but must join in savings and credit groups at hamlets,

                                           2
being nominated by such savings and credit groups, and named in the loan
application list which is sent to the commune People’s Committee for certification.
      - VBSP implements partial lending trusted method via the social political
associations under the entrusted mechanism applied to lending to the poor and other
policy beneficiaries of VBSP.
       II. LENDING PROCEDURES AND PROCESS:
       1. Loan documents, including: (loan forms are used with common forms of
 lending to the poor program)
       1.1. The loan application cum debt covenant (Form 01/TD).
       1.2. Labor contract signed between the recruiter and worker.
       In case workers go working abroad under individual labor contracts signed
 directly between the workers and employers abroad, the individual labor contract
 must be verified to be registered at the Department of Labor, War Invalids and
 Social Affair where employees are living.
       While there is no labor contract, VBSP shall base on notice or certification of
 recruiter of overseas worker for definite terms to consider and do the lending
 procedure. Loans are only disbursed when VBSP receives the original of labor
 contract.
       1.3. The meeting minutes of a savings and credit group (Form 10/TD).
       1.4. The list of households applying for loans verified by the commune
 People’s Committee (Form 03/TD).
      1.5. The notification of loan approval (Form 04/TD).
      2. Lending process:
        2.1. The borrower shall write a loan application (Form 01/TD) to send to the
savings and credit group at local area.
      2.2. The savings and credit group receives the loan applications of the
borrowers, organizes a meeting to select the households who are eligible for
borrowing, verifies the elements on the loan application, and considers the applicants
in accordance with the loan policy of the Government. In case the borrower is not yet
a member of a SCG, the available SCG in the village shall recruit him/her or
borrowers are organized in a new group if it is eligible. If there are only 1 to 4 of new
borrowers, they will be recruited to the existing group even when the group already
has 50 members. The SCG then makes a list of households proposing for loans (Form
03/TD) to submit to the commune People’s Committee for certification.
      2.3. Upon the certification of the commune People’s Committee, SCGs are
responsible for sending loan documents to VBSP for approval.
        2.4. After receiving loan documents sent by SCGs, the assigned staff of VBSP
shall check and verify the eligibility, legality of the loan documents to submit to the
Manager of Credit Department and Director for lending approval. After approval,
VBSP shall make a written announcement on lending approval (Form 04/TD) to send
to the commune People’s Committee.
      2.5. The commune People’s Committee shall inform the commune mass
organizations (who are the lending trustees) and the savings and credit group to make an
announcement to the borrowers to come to the transaction points at commune or the
local VBSP office to receive loan.
       3. Disbursement:

                                           3
       Loans are directly transfered to the recruiter. Upon receiving the notification of
 approval for borrowing, the borrowers come to the local VBSP office to do
 procedures to send the money directly to the recruiter under recruitment contract.
       In case the recruiter has a written proposal, VBSP can directly disburse for the
 borrowers at the transaction points. If the borrowers do not directly receive loans,
 they can authorize a member of household to receive loans with authorized letter
 certified by the commune People’s Committee.
       In each disbursement, VBSP’s staffs must completely record all the contents
 and require the borrowers to sign in the loan receipt as under the regulations.
       4. Loan maturity, principal and interest collection:
       4.1. Loan maturity:
       Periodical repayment period for principal of every six months or year and
 interest repayment monthly or quarterly upon negotiation between the borrower and
 the VBSP shall be written in the debt agreement. In case Vietnamese enterprises are
 allowed to send workers to work overseas and manage their incomes paid by
 employers abroad; VBSP, workers and the Vietnamese enterprises can negotiate
 about repaying directly for VBSP from workers’ income by the Vietnamese
 enterprises.
      4.2. Principal and interest collection:
      a. Principal and interest collection is implemented according to installments’
schedules negotiated in debt covenant. In case borrowers repay loans in US dollars,
VBSP will exchange according to the exchange rate of the State Bank of Vietnam at
the time of repayment.
      b. In case, the borrower has difficulty in repaying a principal installment on due,
VBSP will transfer the amount into the next repayment installment.
      c. For the overdue loan, the interest is collected at the same time with the
principal; in case the borrowers meet actual difficulty, priority in collection is given
to principal collection.
      5. Loan rescheduling:
      - At the end of the repayment term, if a borrower fails to make repayment in due
time because of his/her objective difficulties, the lending VBSP shall consider to
reschedule the loan
      - Loan reschedule procedure: The borrowers shall write a proposal on debt
reschedule (Form 09/TD) to send to the lending VBSP branch for loan rescheduling
consideration.
       - Loan reschedule term: VBSP could make decisions on loan rescheduling
 one or more than one time for each loan, but the maximum loan reschedule term
 of short – term loans shall be equal to the loan term, the maximum loan
 reschedule term of medium – term loans and long – term loans shall not be
 more than a half of the loan term.
      6. Overdue debt:
       6.1. Overdue debt shall be implemented as follows:
       a. In case borrowers use loans improperly, the lending VBSP shall collect principal
 before due date or transfer the entire principal balance into overdue debt.




                                            4
        b. At the end of final repayment period, if the borrower fails to make its full
 repayment, and VBSP does not approve loan extension for them, VBSP will transfer
 the total outstanding loan into overdue debt.
        6.2. After transferring into overdue debt, the lending VBSP will coordinate with the
 local government; the mass organizations; the savings and credits group to recover the
 loan. In case, the borrowers have capacity to repay on due loan but refuse to pay, VBSP
 will transfer documents into the authority agency to collect debt under law’s regulations.
       7. Loan supervision:
       7.1. Savings and credit group
         - The savings and credit group is responsible for checking borrowing
conditions of the borrower as receiving loan application to determine correctly the
borrowing objective.
         - Regularly supervising, monitoring and urging the borrowers in the group to
use the loan properly as stated in borrowing purpose and to conduct principal and
interest repayment in due time; witnessing and monitoring loan disbursement,
principal and interest collection.
         - Cooperating with the mass organizations to consider the proposals for
treatment to the debt risks due to the objective causes to submit to the communal
People’s Committee for certification.
       7.2. The communal mass organizations
       - To direct SCGs and take part in organizing the meeting to select the
households to be eligible for borrowing, make a list of these households applying for
VBSP’s loan (Form 03/TD).
       - To supervise and monitor loan utilization of the borrowers by publicly
checking (Form 06/TD) and promptly notify the lending VBSP about improper loan
using, escapement, death, disappearance, risk caused by the objective reasons to have
timely handling measures. To coordinate with the savings and credit group and the
local government to handle the bad debts and the overdue debts and to instruct the
borrowers to complete the documents on proposal for treatment of risks because of
the objective reasons (if any).
       - To direct and supervise the savings and credit group’s management board in
the performance of entrusted contract signed with VBSP.
       7.3. VBSP
       - To verify, collate the list of households applying for VBSP’s loans (Form
03/TD) with the list of SCG’s members (Form 10/TD). To check the legality of the
loan document set under regulations.
         - On regular or unscheduled basis, VBSP’s leader shall invite members of the
Representative Unit of the Board of Directors of VBSP at the same level to conduct
surveillance and supervision over compliance with credit policies of the SCGs, the
borrowers and the mass organizations at lower level, and loan using efficiency of the
borrowers.
       - To organize regular meetings at the communal mobile transaction points to
exchange results, shortcomings, difficulties and propose solutions to entrusted
activities and recommendations to deal with due debts, overdue debts, risk debts (if
any).
        8. Risk treatment:


                                             5
       8.1. Regarding to objective risks, it is implemented according to the
 mechanism of risk treatment of the VBSP system. Currently, it is executed
 according to the Decision No 55/QD-HDQT dated February 24th, 2006 of the
 Chairman of Board of Directors of VBSP.
       8.2. For risks due to subjective reasons of organizations, individuals, organizations
 and individuals causing losses must compensate as prescribed by the law.
      9. Loan document keeping:
      All lending documents shall be kept at accounting department of the lending VBSP
      III. IMPLEMENTATION:
       1. Statistical report regime:
        1.1. The report on lending results to the worker overseas for definite terms
according to Form 02.4A/BCTD attached with the Document No 942/NHCS-TD
dated May 21st, 2007 on “amending the credit report information regime” and the
guidelines on updating the current credit report information program should be
submitted by VBSP’s provincial branches on date 7th every month.
       1.2. Form 05A “Report on classifying the lending outstanding loan under
 entrusted unit” shall supplement the criteria “lending to policy beneficiaries working
 overseas for definite terms”: Column (21, 22), of which Column 21 “Amount” and
 Column 22 “Of which, overdue debt”.
       To ensure the accuracy of the automatic reports on the computers, the lending
 VBSP must fill completely information: leader code and entrusted unit code for the
 new loans.). After completing the procedure to join in savings and credit groups, the
 current lending agreements (credit contracts) also supplement the above
 information, IT Centre is responsible for amending reporting software appropriately.
      2. For the old outstanding loans according to credit contracts, debt agreements
signed between borrowers and VBSP fomerly which was implemented in accordance
with the direct lending method and management, currently they have also been
transfered by partial trust method for the mass organizations to manage and urge
principal collection under the current regualtions. The directors of the lending VBSP
shall make the outstanding loan statement of the worker overseas lending program
detailed to hamlets and inform to the commune mass organizations to recruit
borrowers into savings and credit group.
      The commune mass organization mobilizes borrowers to join in existing savings
and credit groups and conduct activity convention of savings and credit groups. The
savings and credit group recruits borrowing members of the worker overseas lending
program (Groups don’t make the list 03/TD for these cases).
      3. Repayment of entrusted fee for the socio-political organizations and
commission for savings and credit groups shall be implemented according to the
current regulations. To deploy this lending program effectively, the provincial and
municipal VBSP branches hold training courses for the local mass organizations and
the management boards of the savings and credit groups on lending to policy
beneficiaries working overseas for definite terms.
       4. This document shall be effective from May 1st, 2008 and replacing the
 document No. 319/NHCS-KH dated May 2nd 2003 of the General Director of
 VBSP. Regulations related to migrant workers program for social policy
 beneficiaries serving as migrant workers going abroad for definite terms
 contravened this document are out of effect.

                                             6
         Any amendments and supplements of this document shall be decided by the
    General Director of VBSP.
Receivers:                                                                    PP.GENERAL DIRECTOR
- Chairman of BOD of VBSP;
- General Director; Deputy General Directors of VBSP;                     DEPUTY GENERAL DIRECTOR
- Vietnam Women Union;                                                        (Signed and sealed)
- Vietnam Farmer Association;         in order to coordinate
                                      in            implementing
- Vietnam Youth Union;
- Vietnam Veteran’s Organization;
- Departments at the Headquarters of VBSP;
- Training Center and IT Centre;
- Southern Representative Office;
- VBSP of Provincial and Municipal branches; Transaction Center;
- VBSP at district level;
- VBSP’s Website;
- Keeping at administration department, Credit department.                             Nguyen Van Ly

                                                                                     Form: 02A/LĐNN
                                                                          (Established by the recruiter)

    Company:……………………                              SOCIALIST REPUBLIC OF VIETNAM
    No:…………………………..                                 Independence - Freedom - Happiness


                Certification of recruiting overseas workers for definite terms

    Company:…………………………………………………………………… confirm
    Mr (Mrs):………………………………………………….............………………….
    No of identity card:…………………. Issued by…………………............…dated
    …/…/……
    Residence address: ………………………………………………………………..
    Recruited      by   company        for        working            abroad           for      definite  terms
    at……..............………………..
    Terms:………….................................................................................……Year..........
    Mr (Mrs):……………………………………….………...….has to pay for the
    following fees:
    …………………………………………………………………….……………………
    …………………………………………………………………….……………………
    …………………………………………………………………………….……………
    ………………………………………………………………………………….………
    ……………………………………………………………………………….…………
    ………………………………………………………………………….………………
    ………………………………………………………………………….………………
    ………………………………………………………………………………….………

    Our company confirms for Bank ...............……………………………………….……
    to consider for a loan .

                                                        7
                                                           Date…....…...…..

          Signature of worker            DIRECTOR OF COMPANY
         (Sign, write full name)         Or authorized representative
                                         (Sign, write full name, stamp)

                                                            Phuong Quy

Phê duyệt của Ban Biên tập Website            Giám đốc Ban HTQT




                                                  Phan Cử Nhân




                                     8
9

				
DOCUMENT INFO