Proposal on whether persons who have completed their prison sentences should be allowed to borrow 100 million for production and business purposes
Proposal for Post-Prison Individuals to Borrow 100 Million VND for Production and Business?
According to the proposal in Article 6 of the Draft Decision on Credit for Post-Prison Individuals, the loan capital levels are regulated as follows:
- Loan capital for vocational training:
The maximum loan capital is 4 million VND per month per post-prison individual.
- For loans for production, business, and job creation:
+ For post-prison individuals: The maximum loan capital is 100 million VND per post-prison individual.
+ For production and business facilities: The maximum loan capital is 2 billion VND per project and not more than 100 million VND per worker at the production and business facility.
Is the proposal for post-prison individuals to borrow 100 million VND for production and business accurate?
Proposal on Loan Conditions for Post-Prison Individuals?
- The loan subjects are regulated according to point a, clause 1, Article 3 of the Draft Decision on Credit for Post-Prison Individuals, including:
Post-prison individuals include those who have completed their prison sentences and have obtained a certificate of completion as stipulated in clause 2, Article 46 of the Law on Execution of Criminal Judgments 2019 and those who have been pardoned and obtained a pardon certificate.
Post-prison individuals are eligible for loans when they meet the following conditions:
+ Their names are listed in the local residence post-prison individuals register;
+ They comply with the legal regulations;
+ They do not engage in social evils;
+ They have a loan demand list prepared by the local police where the person resides and confirmed by the People's Committee of the commune (form 01 attached to this Decision).
The time from the date of completing the prison sentence to the time of loan application is a maximum of 5 years.
Loan Term for Vocational Training and Production, Business
According to Article 8 of Draft 2 of the Decision on Credit for Post-Prison Individuals, the loan terms are regulated as follows:
- For vocational training loans: The loan term is the period from the date the post-prison individual starts receiving the loan until the debt (principal and interest) is fully paid. The loan term includes the term of disbursement and the term of debt repayment:
+ The disbursement term is the period from the date the post-prison individual receives the first loan disbursement until the end of the course, including the time the post-prison individual is allowed to take a temporary leave from the course and retain the study results (if any). The disbursement term is divided into disbursement periods as prescribed by the Social Policy Bank or agreed upon with the borrower.
+ The debt repayment term: For training programs with a duration of no more than one year, the maximum repayment term is twice the disbursement term. For other training programs, the maximum repayment term equals the disbursement term. The repayment term is divided into repayment periods as prescribed by the Social Policy Bank.
- For loans for production, business, and job creation: The maximum loan term is 120 months. The specific loan term is reviewed by the Social Policy Bank based on the funding source, production and business cycle, and the borrower’s repayment ability to agree with the borrower.
Interest Rates for Vocational Training and Production, Business Loans
According to Article 9 of Draft 2 of the Decision on Credit for Post-Prison Individuals, the loan interest rates are regulated as follows:
- The loan interest rate equals the interest rate for loans to poor households as prescribed from time to time.
- The overdue debt interest rate is 130% of the loan interest rate.
See the full Draft 2 of the Decision on Credit for Post-Prison Individuals: Here.
Requirements for the Content of the Decision on Execution of Prison Sentences
According to clause 1, Article 22 of the Law on Execution of Criminal Judgments 2019, the requirements are as follows:
Decision on Execution of Prison Sentences
1. The decision on execution of prison sentences must clearly state the name, position of the decision-maker; the judgment, decision to be executed; the name of the executing agency; the name, date of birth, place of residence of the sentenced person; the duration of the prison sentence, the duration of additional penalty execution. If the sentenced person is not detained, the decision must clearly state that the person must present themselves at the district-level criminal judgment execution agency of the place of residence within 7 days from the date of receiving the decision.
2. Within 3 working days from the date of issuing the decision on execution of prison sentences, the Court must send the decision to the following individuals and agencies:
a) The sentenced person and their representative if the person is under 18 years old;
b) The same level Procuracy;
c) The provincial-level criminal judgment execution agency or the military zone-level criminal judgment execution agency;
d) The detention center where the sentenced person is detained or the district-level criminal judgment execution agency where the sentenced person is detained at the temporary detention center or is not detained;
e) The Department of Justice where the issuing court is headquartered;
f) The Ministry of Foreign Affairs in case the sentenced person is a foreigner.
Thus, according to the above regulation, the Decision on Execution of Prison Sentences must clearly state the name, position of the decision-maker; the judgment, decision to be executed; the name of the executing agency; the name, date of birth, place of residence of the sentenced person; the duration of the prison sentence, the duration of additional penalty execution.
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