08:04 | 23/05/2023

Which enterprises will be considered to adjust the repayment term and debt amount in the National Technology Innovation Fund in Vietnam?

Which enterprises will be considered to adjust the repayment term and debt amount in the National Technology Innovation Fund in Vietnam? - Question from Mr. Du (Ha Nam)

Which enterprises will be considered to adjust the repayment term and debt amount in the National Technology Innovation Fund in Vietnam?

First of all, in Circular No. 03/2023/TT-BKHCN specifically explaining the adjustment of debt repayment term; the repayment amount in the National Technology Innovation Fund as follows:

In Clause 2, Article 2 of Circular No. 03/2023/TT-BKHCN, it is mentioned that the repayment term is adjusted; debt repayment amount means the Fund and the enterprise agree to change the repayment terms (principal, interest) or the repayment amount (principal, interest) previously agreed in the contract when the loan term does not change.

According to Clause 1, Article 9 of Circular No. 03/2023/TT-BKHCN, enterprises facing risks specified in Clause 1 or Clause 2, Article 6 of Circular No. 03/2023/TT-BKHCN may consider adjusting the repayment terms and debt amounts.

Specifically, the businesses in the following cases:

- 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 emergency.

- Enterprises are at risk in case the owner of a private enterprise and the owner of a single-member limited liability company (for the owner being an individual) lose their civil act capacity, die, miss or lose their civil act capacity, no assets 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).Which enterprises will be considered to adjust the repayment term and debt amount in the National Technology Innovation Fund in Vietnam?

Which enterprises will be considered to adjust the repayment term and debt amount in the National Technology Innovation Fund in Vietnam?

What are the conditions for adjusting the repayment term and the repayment amount in the National Technology Innovation Fund in Vietnam?

Pursuant to Clause 2, Article 9 of Circular No. 03/2023/TT-BKHCN stipulating the following conditions:

Adjustment of repayment term, repayment amount
...
2. Enterprises shall be considered by the Fund to adjust the debt payment term and payment amount when fully meeting the following conditions:
a) Belonging to the subjects specified in Clause 1 of this Article;
b) Use the loan capital for the right purposes stated in the contract;
c) Having difficulties in production and business activities, leading to failure to pay the debt (principal and interest) in full and on time according to the contract;
d) Having a viable production and business plan and a debt repayment plan after the debt repayment term is adjusted;
dd) Having a complete dossier as prescribed in Clause 5 of this Article.
...

Thus, enterprises will be considered by the Fund to adjust the debt payment term and repayment amount when fully meeting the following conditions:

- Being subject to adjustment of debt payment term and payment amount;

- Use the loan capital for the right purposes stated in the contract;

- Having difficulties in production and business activities, leading to failure to pay debts (principal and interest) in full and on time according to the contract;

- Having a business plan and a feasible debt repayment plan after the debt repayment term is adjusted;

- Full profile available.

What is the dossier of application for adjustment of repayment term and repayment amount?

According to the provisions of Clause 5, Article 9 of Circular No. 03/2023/TT-BKHCN guiding the application for adjustment of the debt payment term, the repayment amount as follows:

Adjustment of repayment term, repayment amount
...
3. The adjustment of the debt payment term, the debt payment amount must be within the loan term, not change the final repayment term and the total amount of debt payable under the contract.
4. The Fund's Director considers and decides on the application of measures to adjust the debt payment term and debt payment amount.
5. A dossier of request for adjustment of the debt payment term and the debt payment amount prepared by the enterprise to be sent to the Fund includes:
a) A written request for handling of risks, signed by the legal representative of the enterprise, including the following contents: Causes of the risk of not being able to repay debts according to the contract; damage to capital and property; book value of the debt; already applied risk treatment measures (if any) and proposed risk treatment measures; build a commitment on the feasibility of the production and business plan and the loan repayment plan if it is accepted to apply risk treatment measures;
b) A certified true copy of the independently audited financial statement or the financial statement sent to the tax authority in the last 2 years before the time of request for handling risks of the enterprise or the audited financial statement; independent auditors or financial statements submitted to the tax authority of the year before the time of request for risk treatment for enterprises with less than 2 years of operation;
c) A certified true copy of the loan reconciliation up to the time of requesting the risk treatment measure;
d) Other relevant documents and documents (if any).
6. After receiving a complete dossier as prescribed in Clause 5 of this Article, the Fund's Director shall have to organize the appraisal and assessment of risks; determine the level of capital and property damage occurring to the enterprise; consider measures to urge debt recovery, applied risk treatment measures and implementation results (if any), the need to apply proposed risk treatment measures, the possibility of repay the debt (principal, interest) of the enterprise after the proposed risk treatment measures are applied; consider, decide and organize the adjustment of debt payment term and amount.

Thus, the application file for adjustment of the debt payment term and the debt payment amount prepared by the enterprise to be sent to the Fund includes:

- A written request for risk treatment signed by the legal representative of the enterprise, including the following contents:

+ Causes of the risk of not being able to repay the debt according to the contract; damage to capital and property;

+ Book value of the debt;

+ Measures to handle risks have been applied (if any) and recommended measures to handle risks;

+ Build commitment on feasibility of production and business plan, loan repayment plan if accepted to apply risk treatment measures;

- A certified copy of the independently audited financial statement or the financial statement sent to the tax authority in the last 2 years prior to the time of the enterprise's request for risk handling or Financial statements independently audited or financial statements submitted to the tax authority of the year prior to the time of request for risk treatment for enterprises with less than 2 years of operation;

- A certified copy of the loan reconciliation up to the time of requesting the risk treatment measure;

- Other relevant documents and documents (if any).

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