In what cases can enterprises get their outstanding principal written off by the National Technology Innovation Foundation in Vietnam according to the latest regulations?
- In what cases can enterprises get their outstanding principal written off by the National Technology Innovation Foundation in Vietnam?
- Which cases are enterprises considered by the National Technology Innovation Foundation to consider and treat risks?
- Since when is the regulation on risk treatment for enterprises of the National Technology Innovation Foundation applied?
In what cases can enterprises get their outstanding principal written off by the National Technology Innovation Foundation in Vietnam?
Pursuant to Article 16 of Circular No. 03/2023/TT-BKHCN stipulating as follows:
Outstanding principal write-off
1. Enterprises facing risks as prescribed in Clause 1, 2 or 4 Article 6 of this Circular are eligible for outstanding principal write-off.
2. National Technology Innovation Foundation (NATIF) will apply for write-off of outstanding principal incurred by an enterprise when it meets all eligibility requirements below:
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) Despite the adoption of the risk treatment measure prescribed in Article 12 or Article 13 hereof, there is still outstanding principal that needs to be collected;
d) It has submitted an adequate application as prescribed in Clause 5 of this Article.
3. An outstanding principal shall be written off once only.
4. The Minister of Science and Technology will decide whether to adopt the outstanding principal write-off and amount thereof based on whether doing so will decrease NATIF’s charter capital as prescribed in point b clause 4 Article 31 of NATIF’s Charter. If the outstanding principal write-off does not decrease NATIF’s charter capital, NATIF’s Director shall request the Minister of Science and Technology to present it to the Prime Minister to adopt the outstanding principal write-off and amount thereof as prescribed in points a, b, c, e clause 1 and point a clause 4 Article 31 of NATIF’s Charter.
5. NATIF shall prepare an application for outstanding principal write-off including:
- The written application for risk treatment made by NATIF, indicating the following: the enterprise’s business situation , debt repayment (principal, interest) under the contract, associated risks and their causes, the level of capital and property damage incurred by the enterprise, the book value of the debt. The application for risk treatment must specify the adopted risk treatment measures and associated results (if any), and proposed risk treatment measures;
- The record of capital and asset damage incurred by the enterprise (the enterprise’s certification thereon is not required);
- Propose risk treatment for part or all of the book value of the debt;
- The original of the decision to declare bankruptcy issued by the civil judgment enforcement agency;
- Other documents and instruments as prescribed by law regulations (if any).
6. NATIF’s Director shall appraise the received application, carry out risk assessment and determination of capital and asset damage incurred by the enterprise; make a report on risk treatment, consult with the Risk Treatment Council on the risk treatment measures, and then present it to the competent authority specified in Clause 4 of this Article for consideration and decision on adoption of risk treatment measures. Once the risk treatment measure has been decided upon, the Director of NATIF shall write off the outstanding principal.
Thus, risky enterprises that has completed the bankruptcy process will be considered by the National Technology Innovation Foundation to write off their outstanding principal.
In what cases can enterprises get their outstanding principal written off by the National Technology Innovation Foundation in Vietnam according to the latest regulations?
Which cases are enterprises considered by the National Technology Innovation Foundation to consider and treat risks?
Pursuant to Article 6 of Circular No. 03/2023/TT-BKHCN stipulating the cases of enterprises considered by the National Technology Innovation Foundation to consider and treat risks as follows:
- Enterprises suffer financial and/or property damage due to disasters in accordance with regulations of law on prevention and control of disasters, calamities, crop failure, epidemics, fire, war events or national state of emergency.
- An enterprise that is at risk because its owner (for a sole proprietor or a one-member limited liability company) loses his/her active legal capacity, dies, disappears, or leaves no property to repay their debts;
An enterprise that has ceased operations, and it lacks assets and financial resources to clear its debts; an enterprise that faces risks due to other objective causes including unforeseen accidents, political risks, changes in State policies that directly impact its production and business operations, resulting in financial losses, difficult financial circumstances, or default on debts (principal or interest).
- An enterprise that encounters financial difficulties resulting in lack of financial resources to repay debts or default on debts other than the cases specified in Clauses 1 and 2 Article 6 of Circular No. 03/2023/TT-BKHCN.
- The enterprise has completed the bankruptcy process in accordance with current law.
Since when is the regulation on risk treatment for enterprises of the National Technology Innovation Foundation applied?
Pursuant to Article 19 of Circular No. 03/2023/TT-BKHCN stipulating as follows:
Implementation clause
1. This Circular comes into force as of July 1, 2023.
2. Difficulties that arise during the implementation of this Circular should be promptly reported to the Ministry of Science and Technology for consideration./.
Thus, Circular No. 03/2023/TT-BKHCN takes effect from July 1, 2023. This means that the regulations on risk treatment for enterprises of the National Technology Innovation Foundation will be applied from July 1, 2023.
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