Decision 22/2023/QD-TTg credit for persons who have completely served their imprisonment sentences

DECISION

On credit for persons who have completely served their imprisonment sentences^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 13, 2019 Law on Public Investment;

Pursuant to the June 14, 2019 Law on Execution of Criminal Judgments;

Pursuant to the Government’s Decree No. 78/2002/ND-CP of October 4, 2002, on credit for the poor and other social policy beneficiaries;

Pursuant to the Government’s Decree No. 49/2020/ND-CP of April 17, 2020, detailing the implementation of the Law on Execution of Criminal Judgments regarding community reintegration;

At the proposal of the Minister of Public Security;

The Prime Minister promulgates the Decision on credit for persons who have completely served their imprisonment sentences.

Article 1. Scope of regulation

This Decision provides for credit policies applicable to persons who have completely served their imprisonment sentences, and production and business establishments that employ persons having completely served their imprisonment sentences and are eligible for borrowing loans from the Vietnam Bank for Social Policies to carry out vocational training, production and business, and job creation activities.

Article 2. Subjects of application

1. Vietnam Bank for Social Policies.

2. Customers being organizations and individuals eligible for borrowing loans as specified in Clause 1, Article 3 of this Decision.

3. Other related organizations and individuals.

Article 3. Eligible subjects and conditions for loan borrowing

Eligible subjects and conditions for loan borrowing:

1. Subjects eligible for borrowing loans

a/ Persons who have completely served their imprisonment sentences, including persons who have finished the periods of their imprisonment sentences and been granted certificates of complete serving of imprisonment sentences as specified in the Law on Execution of Criminal Judgments and persons who are entitled to special amnesty and have been granted special amnesty certificates as specified in the Law on Special Amnesty;

b/ Production and business establishments, including small- and medium-sized enterprises, cooperatives, cooperative groups, and business households that employ persons who have completely served their imprisonment sentences.

2. Conditions for loan borrowing

a/ For persons who have completely served their imprisonment sentences: having the need for borrowing loans; and being named on the lists of persons who have completely served imprisonment sentences, return to hometown for residence, strictly abide by law, and are not involved in social evils; such lists shall be made by commune-level public security offices according to Form No. 01 provided in the Appendix to this Decision and certified by commune-level People’s Committees. The duration counted from the date of complete serving of an imprisonment sentence to the time of loan borrowing must not exceed 5 years;

b/ For production and business establishments: being established and lawfully operating in accordance with law; having at least 10% of their employees being persons who have completely served their imprisonment sentences and satisfy the conditions specified at Point a of this Clause, and signing labor contracts with these persons in accordance with the labor law; and having loan borrowing plans, which shall be made according to Form No. 02 provided in the Appendix to this Decision and certified by the commune-level People’s Committees of the localities where such plans are to be implemented.

3. Persons who have completely served their imprisonment sentences and production and business establishments specified in Clauses 1 and 2 of this Decision must be those having no outstanding balance at the Vietnam Bank for Social Policies for other credit programs with the same loan use purposes for carrying out vocational training, production and business, and job creation activities in accordance with law.

Article 4. Lending methods

1. For persons who have completely served their imprisonment sentences:

a/ Loans will be provided through eligible persons’ households. Representatives of households of such persons will act as loan borrowers and personally conduct transactions with the Vietnam Bank for Social Policies. In case a household has no member aged full 18 years or older or other household members have no working capacity or full civil act capacity in accordance with law, the person who has completely served his/her imprisonment sentence shall personally carry out loan borrowing transactions with the Vietnam Bank for Social Policies;

b/ The Vietnam Bank for Social Policies’ branches shall provide loans to these persons through entrusted socio-political organizations.

2. For production and business establishments

The Vietnam Bank for Social Policies’ branches shall directly provide loans to these establishments.

Article 5. Loan use purposes

1. Loans for vocational training shall be used to cover:

Studying expenses and cost of living of persons who have completely served their imprisonment sentences during the period of study in universities (or university-equivalent education institutions), colleges, professional intermediate schools or vocational education institutions established and operating in accordance with Vietnam’s law, including tuition fees; expenses for purchase of textbooks and learning aids; and expenses for food, accommodation and travel.

2. Loans for production and business and job creation activities shall be used to cover:

Expenses for production and business and job creation activities, including expenses for carrying out production and business and job creation activities.

Article 6. Loan amounts

1. For loans for vocational training activities

The maximum loan amount for a person who has completely served his/her imprisonment sentence is VND 4 million/month.

2. For loans for production and business and job creation activities

a/ For a person who has completely served his/her imprisonment sentence: The maximum loan amount is VND 100 million;

b/ For production and business establishments: The maximum loan amount is VND 2 billion/project and must not exceed VND 100 million/employee.

 Article 7. Currency used in loan provision and repayment

The currency used in loan provision and repayment is Vietnam dong.

Article 8. Loan terms

1. For loans for vocational training activities

a/ The loan term is a period of time counted from the date a person who has completely served his/her imprisonment sentence receives a loan to the date he/she fully repays the loan (both principal and interest). A loan term includes the period of loan delivery and the period of loan repayment;

b/ The period of loan delivery is a period of time counted from the date a person who has completely served his/her imprisonment sentence receives the first loan amount for a vocational training course to the date the course ends, including also the period of time he/she is permitted by the vocational training institution to take leave for a definite period and have his/her training results reserved (if any);

c/ The period of loan repayment shall be divided into different repayment sub-periods as specified by the Vietnam Bank for Social Policies as follows:

For training programs with a duration not exceeding one year, the period of loan repayment must not exceed twice the period of loan delivery.

For other training programs, the period of loan repayment must not exceed the period of loan delivery.

2. For loans for production and business and job creation activities

The maximum loan term is 120 months. The specific loan terms shall be considered and decided by the Vietnam Bank for Social Policies based on funding sources for loan provision, production or business cycle and solvency of a borrower for reaching an agreement.

Article 9. Lending interest rate

1. The lending interest rate shall be equal to those applicable to poor households in each period.

2. Overdue interest rates shall equal 130% of the lending interest rate.

Article 10. Loan security

1. Loan security is not required for persons who have completely served their imprisonment sentences and borrow loans for vocational training, production and business and job creation activities.

2. Production and business establishments that employ persons having completely served imprisonment sentences and borrow a loan exceeding VND 100 million shall be subject to loan security in accordance with law and regulations of the Vietnam Bank for Social Policies regarding security for performance of loan borrowing-related obligations.

Article 11. Funding sources for loan provision

1. Local budget funds annually allocated through the Vietnam Bank for Social Policies.

2. Funds mobilized by the Vietnam Bank for Social Policies, which are eligible for interest-rate difference subsidies from the state budget and management charges under regulations.

3. Other lawful funding sources.

Article 12. Loan classification and handling of non-performing loans

To comply with regulations on loan classification and handling of non-performing loans at the Vietnam Bank for Social Policies.

Article 13. Dossiers for loan borrowing, order and procedures for loan provision, loan repayment terms, loan repayment levels, loan rescheduling, and conversion of unpaid loans into overdue debts

1. The Vietnam Bank for Social Policies shall provide guidance on dossiers for loan borrowing, order and procedures for loan provision, loan repayment terms and loan repayment levels in a simple, transparent and easy-to-follow manner.

2. The loan rescheduling and conversion of unpaid loans into overdue debts must comply with law.

Article 14. Organization of implementation

1. Loan borrowers shall use loans for proper purposes and fully and timely repay the loans to the Vietnam Bank for Social Policies.

2. The Ministry of Public Security shall:

a/ Direct detention facilities to organize the dissemination of the policies specified in this Decision;

b/ Direct local public security departments to coordinate with provincial-level departments and sectors and related local agencies in assisting provincial- and district-level People’s Councils and People’s Committees in allocating local budget funds via the Vietnam Bank for Social Policies for providing loans to persons who have completely served their imprisonment sentences; and closely coordinate with the Vietnam Bank for Social Policies in the process of supervising loan provision and recovery;

c/ Direct commune-level public security offices to, on the 5^th every month, formulate and provide the lists of persons who have completely served imprisonment sentences and have demands and are eligible for borrowing loans (made according to Form No. 01 provided in the Appendix to this Decision) to the Vietnam Bank for Social Policies for use as a basis for loan provision;

d/ Assume the prime responsibility for, and coordinate with ministries, sectors, related agencies and the Vietnam Bank for Social Policies in, organizing the implementation of this Decision; and propose the settlement of arising problems in the course of implementation of this Decision and amendments and supplementations to this Decision when deeming it necessary.

3. The Ministry of National Defense shall direct detention facilities under the Ministry of National Defense to organize the dissemination of policies specified in this Decision.

4. The Vietnam Bank for Social Policies shall:

a/ Guide the contents mentioned in Article 13 of this Decision;

b/ Manage, mobilize and use funding sources, and provide loans for proper entities according the conditions specified in this Decision;

c/ Coordinate with ministries and sectors in reporting problems arising in the course of loan provision to competent authorities for prompt settlement under this Decision.

5. Ministries, ministerial-level agencies, and government-attached agencies shall, within the ambit of their functions, tasks and powers, coordinate with the Ministry of Public Security, Ministry of National Defense, and Vietnam Bank for Social Policies in organizing the implementation of this Decision.

6. Provincial- and district-level People’ Committees shall:

a/ Annually, consider allocating local budget funds via the Vietnam Bank for Social Policies for loan provision in accordance with law;

b/ Direct provincial-level departments and sectors and related units to submit the annual allocation of local budget funds via the Vietnam Bank for Social Policies for loan provision to competent authorities for approval;

c/ Direct commune-level People’s Committees to certify the subjects eligible for borrowing loans and conditions for loan borrowing specified in Article 3 of this Decision;

dd/ Coordinate with the Vietnam Fatherland Front Committees, socio-political organizations and the Vietnam Bank for Social Policies in disseminating the policies specified in, and organize and supervise the implementation of, this Decision.

Article 15. Handling of violations

Agencies, organizations and individuals that take advantage of the policies specified in this Decision for self-seeking purposes and commit violations shall, depending on the nature and severity of their violations, pay compensation, or be disciplined, administratively sanctioned, or examined for penal liability in accordance with law.

Article 16. Implementation provisions

1. This Decision takes effect on October 10, 2023.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and the Chairperson of the Board of Directors and General Director of the Vietnam Bank for Social Policies shall implement this Decision.-

Prime Minister
PHAM MINH CHINH

* The Appendix to this Decision is not translated.