Guidelines on risk handling for NATIF issued

The Science and Technology Ministry has just released Circular No.03/2023 to instruct the risk handling in direct lending activities of the National Technology Innovation Foundation (NATIF).

Accordingly, the principle of risk handling is to ensure law observance, to pinpoint risk reasons and levels, to identify current trading, manufacturing, and financial situation as well as debt repayment ability, to verify the validity and sufficiency of necessary documents.

More importantly, the risk handling process must be carried out in a manner of minimizing damage to the State, tightening the responsibilities of stakeholders (the Foundation, businesses, and related organizations or individuals) in collecting the debt. Any risk handling measures that do not cause/minimize the loss of the State’s capital are prioritized.

Regarding conditions to write off a principle debt of an enterprise, the Circular stipulates that a business encountering risks but having finished the bankruptcy process as regulated by the law is eligible for this debt write-off from the Foundation.

The Circular comes into effect as of July 1, 2023.

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