This Circular guides a number of specific points on the handling of outstanding debts of agricultural cooperatives in the Prime Minister�s Decision No. 146/2001/QD-TTg of October 2, 2001.

Subjects entitled to debt handling are agricultural cooperatives, including agricultural cooperatives converted into agricultural service cooperatives and general trade cooperatives in agricultural and rural sector.

Debts to be handled shall include debts payable by cooperatives to commercial banks, agricultural land use tax to be paid into State budget; debts payable to State enterprises and debts owed by cooperatives to social and mass organizations before December 31, 1996, which cooperatives cannot repay.

The remission of debts shall apply only to the to-be-paid debts of cooperatives, which have been dissolved; cooperatives which have been converted and now meet with great financial difficulty and are unable to repay their debts; operating cooperatives (earning profits), which have used loans for investment in infrastructure works which, however, are damaged due to natural disasters, storms or floods.- (Summary)