Chương 2 Nghị định 69/2002/NĐ-CP: Xử lý các khoản nợ phải thu tồn đọng của doanh nghiệp

Chapter II

HANDLING OF RECEIVABLE OUTSTANDING DEBTS OF ENTERPRISES

Article 5.- Handling of receivable bad debts

1. Receivable overdue or due debts falling into one of the following cases shall be considered bad debts:

a) Debtors are enterprises or organizations that have completed their dissolution or bankruptcy under the provisions of law.

b) Debtors have ceased their operation and been insolvent.

c) Debtors are individuals who have died or are missing or serving their imprisonment sentence, or are heirs at law, who are incapable of repaying debts under court decisions.

d) Agricultural cooperatives which have been dissolved, agricultural cooperatives which have been transformed and made business registration under the Government’s Decree No. 16/CP of February 12, 1997 but met with financial difficulties and suffered from business losses, being incapable of repaying their debts, and agricultural cooperatives which have profitably conducted business and used debt amounts for investment in infrastructure, but now such infrastructure are damaged due to natural calamities, storms or floods, shall have their debts written off by the State.

e) Debtors have enjoyed debt remission under decisions of competent agencies as provided for by law.

f) The bad debt deficits after individuals and/or collectives have been held responsible for payment of material compensations.

g) The loss deficits accepted by competent bodies due to the sale of receivable debts.

h) The receivable debts for which the debt claim expenses are larger than their values

i) The receivable debts which have become overdue for 3 years or more and cannot be recovered from debtors that still exist and are operating, suffering from continuous losses and meeting with great difficulties though the enterprises have applied different measures.

2. For operating State enterprises, the receivable bad debts prescribed in Clause 1 of this Article shall be handled in the following order:

a) Using the receivable bad debt reserve sources to make up therefor.

b) Accounting them into the business expenses or incomes of enterprises, depending on each specific case.

c) Where they are accounted into business expenses but the enterprises have suffered from losses, being unable to offset the losses for two consecutive years, and the enterprises do not fall into cases of dissolution or bankruptcy, the competent bodies shall consider and decide to decrease the State capital at the enterprises.

d) Where the measures prescribed at Points a, b and c above have been applied but the enterprises still meet with financial difficulties, the Finance Ministry shall coordinate with the concerned agencies in considering and deciding on capital support or reduction of losses of the enterprises from the source of expenses for reform of enterprises under the Prime Minister’s decision. This support shall be provided by the Finance Ministry directly or via intermediary financial organizations having such function.

3. For State enterprises being under transformation, the receivable bad debts, after being handled once under the provisions at Points a and b, Clause 2 of this Article the enterprises suffer from losses or when debts are not yet handled, the enterprises have already suffered from losses, they shall be considered for the decrease of State capital at enterprises before the transformation.

Where the value of the State capital portion at the enterprises is not enough for handling the accumulated losses and bad debts, or after handling with the decrease of the value of State capital portion at enterprises the remaining value is too small, being not enough to implement the policy of selling preferential equities to the laborers in the enterprises as provided for, or failing to ensure the State capital percentage in the joint-stock companies, the Finance Ministry shall decide to transfer a number of receivable debt amounts to organizations with function of buying and selling outstanding debts and assets handled by the State. In this case, the difference between the value of the receivable debt amounts and the amounts actually recovered by the organizations with function of buying and selling outstanding debts and assets shall be offset from the sources of expense for reform of enterprises.

4. For receivable bad debts, which have already been handled but the debtors still exist, the enterprises shall have to continue monitoring them outside the accounting balance sheet and organize the recovery thereof within 5 years. The recovered money amounts shall be accounted into incomes of the enterprises.

For transformed enterprises, after being transformed, the representatives of the owners of the State capital portions at enterprises shall have to continue monitoring them and organize the recovery of receivable bad debts which have already been handled before the transformation but can be recovered; the collected amounts, after subtracting the expenses for debt recovery, shall be remitted into the State enterprise- reorganizing and equitizing support fund or transferring the dossiers and documents to the organizations with function of buying and selling outstanding debts and assets by decisions of competent State bodies for continued monitoring and organization of recovery thereof for the State budget.

Article 6.- Handling of receivable outstanding debts which can be recovered

1. For the receivable outstanding debt amounts which can be recovered, the enterprises must actively urge and apply every measure for the recovery thereof.

2. For the receivable debt amounts, which have become overdue for 2 years or more and can be recovered, the enterprises must set up reserves and account them into the managerial expenses of the enterprises in the year. The level of deduction for setting up the reserves shall depend on the extent of possible losses, but the total amount of reserve for receivable bad debts shall not exceed 20% of the total debit balance of receivable amounts of the enterprises at the time of making the annual financial reports.

Article 7.- Handling of the State budget-related receivable debt amounts of State enterprises

1. Amounts subsidized or supplementarily allocated by the State budget according to regulations but not yet provided by any budget level shall be fully allocated to the enterprises by such budget level.

2. Amounts remitted in excess by enterprises into any budget level must be refunded to the enterprises or subtracted by such budget level from the payable amount of the subsequent period according to law provisions on tax.

3. Debt amounts regarding volume of capital construction investment under works or projects approved according to competence and invested with budget capital sources, already completed and put to use, which have not yet been fully paid, must be paid in time by the budget to the enterprises. Investment in works from any budget level must be fully and timely paid to the enterprises by such budget level.

4. Amounts to be paid by local budgets when the enterprises assets are mobilized for non-business units or State management bodies in the localities must be paid to the enterprises from the local budgets by the localities.

5. Enterprises receivable debt amounts due to the construction of public works and infrastructure for localities, the transfer or sale of assets and/or working offices to non-business units and/or State management bodies in localities, which are included in the investment plans already approved, but for which the enterprises have not yet received the money, the authorities deciding the investment in or transfer of assets must arrange budget of that level for payment to the enterprises. Cases falling beyond their competence or the budget’s capability shall be reported to the Prime Minister for decision. For enterprises being transformed, they are entitled to decrease the State budget portion in the total values of the enterprises and to inscribe capital increase for units that receive those construction works and/or infrastructure or the units that use the assets bought from the enterprises.

6. Enterprises money amounts temporarily seized by State bodies in the process of examination, inspection or investigation of cases must be returned to the enterprises by the agencies that decided the seizure thereof after there are conclusions that the enterprises were not at fault or shall not have to overcome the consequences.

Article 8.- Handling of guaranteed receivable debts

Organizations and individuals that provide guarantee for enterprises to borrow capital or purchase supplies and goods with deferred payment shall have to repay debts for the enterprises if past the payment time limits the guaranteed enterprises still cannot repay their debts. The enterprises for which debts have been repaid must acknowledge their debts and repay their debts to the organizations and/or individuals that have provided them with guarantee as prescribed.

Article 9.- Accounting of bad debt losses

The State enterprises are entitled to handle and account once or gradually their bad debts into their annual production and business results according to the provisions at Point b, Clause 2, Article 5 of this Decree, but for 2 years at most.

Article 10.- Enterprises with large bad debts

The State enterprises, which have too large receivable debts which cannot be recovered and cannot be fully handled by measures prescribed at Clause 2, Article 5 of this Decree, thus being unable to repay their payable due debts, must be dissolved or bankrupted according to the provisions of law.

Where it is necessary to maintain the enterprises and the enterprises have efficient business plans approved by competent authorities, the provincial/municipal People’s Committees or their managing ministries or branches shall propose the Finance Ministry to consider the addition to the charter capital or take measures to provide financial support so that the enterprises can maintain their normal operations. For cases falling beyond its competence or beyond the budget capacity, the Finance Ministry shall report them to the Prime Minister for decision.