On August 26, 2019, the Ministry of Finance issued Circular No. 57/2019 / TT-BTC guiding the mechanism of handling credit risks of credit guarantee funds for small and medium-sized enterprises. Accordingly, this Circular takes effect from October 15, 2019.
According to Article 13, Circular 57/2019 / TT-BTC stipulating the handling of security assets, credit guarantee funds are allowed to handle security assets to recover debts when:
Subject to consider:
⦁ Customers suffer financial losses, properties caused by natural disasters, crop failure, epidemics, fires, political risks, wars affecting production and business activities, leading to customers not paying get debt (principal and interest) on time according to the signed debt acceptance contract;
⦁ Bankruptcy of customers in accordance with current laws.
⦁ Nước The State changes the policy affecting customers’ production and business activities, leading to customers being unable to pay their debts (principals and interests) on time according to the signed debt acceptance contracts.
⦁ Customers are at risk due to other objective reasons directly affecting the production and business activities, leading to customers being unable to pay debts (principals, interests) on time according to the signed debt acceptance contracts.
⦁ Customers have bad debts (from group 3 to group 5) according to the debt classification results as prescribed;
⦁ Under an agreement between the credit guarantee fund and the customer in the compulsory debt acceptance contract and the guarantor of the signed compulsory debt security contract (if any).
Debts of customers that have been restructured, frozen, or written off, or have not yet been restructured, frozen, or written off, but the Credit Guarantee Fund has appraised and assessed if debt restructuring is applied. frozen debt, write off debt interest, the customer also can not repay the principal to the Credit Guarantee Fund as committed.
The difference between the proceeds from the disposal of security properties and the book value of debts shall be handled as follows (after subtracting expenses prescribed by law):
⦁ In case the proceeds from the handling of collateral are higher than the book value of the debt: The credit guarantee fund shall handle the balance as agreed upon between the credit guarantee fund and its customers at The compulsory debt acknowledgment contract and the guarantor at the signed compulsory debt acceptance contract (if any);
⦁ In case the proceeds from the handling of security assets are lower than the book value of debts: The credit guarantee fund shall continue to monitor and recover the remaining debts (principal and interest). follow the prescribed regime or consider applying other risk handling measures as prescribed in this Circular.
Therefore, with the promulgation of the Circular No. 57/2019 / TT-BTC above, the Government, as well as the Ministry of Finance, have further improved the system of legal regulations in supporting small and medium-sized enterprises. access to capital, realize commitments to support small and medium enterprises.