What are the requirements for enterprises to be considered for extension of repayment period by the National Technology Innovation Foundation in Vietnam?
- When an enterprise incurs risk, how to determine capital and asset damage of the enterprise?
- What are the requirements for enterprises to be considered for extension of repayment period by the National Technology Innovation Foundation in Vietnam?
- What are the procedures for extension of repayment period?
When an enterprise incurs risk, how to determine capital and asset damage of the enterprise?
According to Article 7 of Circular No. 03/2023/TT-BKHCN on this issue as follows:
Determination of capital and asset damage
1. When an enterprise incurs risk, National Technology Innovation Foundation shall play the leading role and cooperate with relevant parties, including National Technology Innovation Foundation, the enterprise, and competent authorities (if any), to examine and assess the risk and make a record of capital and asset damage incurred by that enterprise.
2. The record of capital and asset damage incurred by the enterprise must bear certifications of related parties as specified in clause 1 of this Article and contain all the necessary information such as events, risks incurred, causes of risks, and the capital and asset damage level.
3. The level of capital and asset damage incurred by the enterprise is the cash value of assets and capital actually damaged or lost at the date of record.
4. National Technology Innovation Foundation is allowed to engage entities that are licensed to provide valuation services to determine the level of capital and asset damage incurred by the enterprise.
Thus, the level of capital and asset damage incurred by the enterprise is the cash value of assets and capital actually damaged or lost at the date of record.
When an enterprise incurs risk, National Technology Innovation Foundation shall play the leading role and cooperate with relevant parties, including National Technology Innovation Foundation, the enterprise, and competent authorities (if any), to examine and assess the risk and make a record of capital and asset damage incurred by that enterprise.
What are the requirements for enterprises to be considered for extension of repayment period by the National Technology Innovation Foundation in Vietnam?
What are the requirements for enterprises to be considered for extension of repayment period by the National Technology Innovation Foundation in Vietnam?
Pursuant to Clause 2, Article 10 of Circular No. 03/2023/TT-BKHCN guiding the requirements for consideration of extension as follows:
Extension of repayment period
…
2. An enterprise may be eligible for extension of repayment period when meeting all of the following requirements:
a) It is an entity mentioned in Clause 1 of this Article;
b) It has used the borrowed funds for the purposes specified in the contract;
c) It has a viable production and business plan and a debt repayment plan after the debt repayment term is revised;
d) It has submitted an adequate application as prescribed in Clause 5 of this Article.
Thus, enterprises are considered by the National Technology Innovation Foundation for debt extension when fully meeting the following requirements:
- It is an entity subject to extension of repayment period;
- It has used the borrowed funds for the purposes specified in the contract;
- It has a viable production and business plan and a debt repayment plan after the debt repayment term is revised;
- It has submitted an adequate application for extension of repayment period.
What are the procedures for extension of repayment period?
Pursuant to Clause 6, Article 10 of Circular No. 03/2023/TT-BKHCN stipulating as follows:
Extension of repayment period
…
3. The extended repayment period must fall within the loan term and not exceed the maximum loan term of 7 years.
4. The extension of repayment period shall be considered and decided by President of National Technology Innovation Foundation’s Management Council.
5. The enterprise shall prepare an application for extension of repayment period as prescribed in Clause 5 Article 9 hereof.
6. After receiving an adequate application as prescribed in Clause 5 of this Article, National Technology Innovation Foundation’s Director shall appraise the received application, carry out risk assessment and determination of capital and asset damage incurred by the enterprise; consider measures to urge debt recovery, adopted risk treatment measures and results thereof (if any), the need to apply proposed risk treatment measures, the capacity to repay the debt (principal, interest) of the enterprise after the proposed risk treatment measures are adopted; consult the Risk Treatment Council on risk treatment measures, and present them to the competent authorities specified in Clause 4 of this Article for consideration and decision on adoption of a risk treatment measure. Once the risk treatment measure has been decided upon, the Director of National Technology Innovation Foundation shall grant the extension of debt.
Thus, the extension of repayment period for an enterprise incurring risk will be implemented as follows:
(1) The enterprise shall prepare an application for extension of repayment period.
(2) After receiving an adequate application:
National Technology Innovation Foundation’s Director shall appraise the received application, carry out risk assessment and determination of capital and asset damage incurred by the enterprise; consider measures to urge debt recovery, adopted risk treatment measures and results thereof (if any), the need to apply proposed risk treatment measures, the capacity to repay the debt (principal, interest) of the enterprise after the proposed risk treatment measures are adopted;
Consult the Risk Treatment Council on risk treatment measures, and present them to the competent authorities specified in Clause 4 of this Article for consideration and decision on adoption of a risk treatment measure.
(3) Once the risk treatment measure has been decided upon, the Director of National Technology Innovation Foundation shall grant the extension of debt.
Circular No. 03/2023/TT-BKHCN takes effect from July 1, 2023.
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