How many measures are there to deal with risks in the direct lending of the National Technology Innovation Fund in Vietnam?

How many measures are there to deal with risks in the direct lending of the National Technology Innovation Fund in Vietnam? - Question from Mr. Giang (Ha Nam)

How many measures are there to deal with risks in the direct lending of the National Technology Innovation Fund in Vietnam?

Pursuant to Chapter 2 of Circular No. 03/2023/TT-BKHCN stipulating measures to handle risks in direct lending activities of the National Technology Innovation Fund, including:

- Adjustment of debt repayment term, repayment amount

- Debt extension

- Debt freeze

- Selling debt

- Handling of secured assets

- Switch off-balance sheet tracking

- Clearing the original debt

How many measures are there to deal with risks in the direct lending of the National Technology Innovation Fund in Vietnam?

How many measures are there to deal with risks in the direct lending of the National Technology Innovation Fund in Vietnam?

When are enterprises considered to handle risks in direct lending activities of the National Technology Innovation Fund in Vietnam?

Pursuant to Article 6 of Circular No. 03/2023/TT-BKHCN stipulating as follows:

Cases considered for risk treatment
1. Enterprises suffer financial and property damage due to natural disasters in accordance with the law on prevention and control of natural disasters, disasters, crop failure, epidemics, fires, wars, and national emergencies.
2. Enterprises face risks in case the owner of a private enterprise and the owner of a one-member limited liability company (for individual owners) lose their civil act capacity, die, missing, no property left to repay the debt; the enterprise has stopped operating, has no assets and financial capacity to pay debts; Enterprises face risks due to other objective causes including unexpected accidents, political risks, changes in State policies that directly affect production and business activities, leading to loss-making activities, difficult financial situation, inability or inability to pay debts (principal and interest).
3. Enterprises encounter financial difficulties resulting in inability to repay debts or are unable to repay debts other than the cases specified in Clauses 1 and 2 of this Article.
4. The enterprise has completed bankruptcy in accordance with current law.

Thus, enterprises are considered to handle risks in direct lending activities of the National Technology Innovation Fund in the following cases:

(1) Enterprises suffer financial and property damage due to natural disasters in accordance with the law on prevention and control of natural disasters, disasters, crop failure, epidemics, fires, wars, national emergencies.

(2) Enterprises face risks in case the owner of a private enterprise and the owner of a one-member limited liability company (for individual owners) lose their civil act capacity, die, missing, no property left to repay the debt; the enterprise has stopped operating, has no assets and financial capacity to pay debts; Enterprises face risks due to other objective causes including unexpected accidents, political risks, changes in State policies that directly affect production and business activities, leading to loss-making activities, difficult financial situation, inability or inability to pay debts (principal and interest).

(3) The enterprise has financial difficulties leading to the inability to repay the debt or the inability to repay the debt which is not in the case (1) (2)

(4) The enterprise has completed bankruptcy in accordance with the provisions of current law.

When an enterprise is at risk, how is the National Technology Innovation Fund responsible for determining the amount of capital and property damage?

Pursuant to Article 7 of Circular No. 03/2023/TT-BKHCN stipulating as follows:

Determination of capital and property damage
1. When an enterprise is at risk, the Fund shall assume the prime responsibility for, and coordinate with relevant parties, including the Fund, the enterprise, and functional and competent agencies (if any) in organizing the inspection and assessment of risks and make a record to determine the loss of capital and assets of the enterprise.
2. The minutes certifying the damage to capital and assets of the enterprise must be certified by the relevant parties specified in Clause 1 of this Article and should have basic contents including description of the incident, the risk, the cause of the risk, the level of capital and property damage.
3. The amount of damage to capital and assets of the enterprise is the value converted into money of assets and capital actually lost at the time of making the minutes.
4. In case of necessity, the Fund's executive agency may hire organizations and individuals with the appraisal function to assess the damage to capital and assets of the enterprise.

According to the above provisions, when an enterprise is at risk, the Fund shall assume the prime responsibility for, and coordinate with relevant parties, including the Fund, the enterprise, and functional and competent agencies (if any) in organizing the inspection and assessment of risks and make a record to determine the loss of capital and assets of the enterprise.

Circular No. 03/2023/TT-BKHCN takes effect from July 1, 2023.

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