Nghe An seeks solutions to difficulties for fishing boats 67

On the morning of March 29, the Provincial People's Committee held a meeting with localities, sectors and related units to remove difficulties in implementing Decree 67/CP of the Government on a number of policies for fisheries development. Comrade Hoang Nghia Hieu - Vice Chairman of the Provincial People's Committee chaired.

Overview of the meeting. Photo: Xuan Hoang

Ship 67/CP operates at a standstill

Nghe An has a total number of newly built ships according toDecree 67/2014/ND-CP 104 ships with total designed main engine capacity of: 83,832 CV. Of which: 90 wooden hull ships, 9 steel hull ships, 5 composite hull ships. The total capital lent by commercial banks under the support policy of Decree 67/CP is 860 billion VND. The 67 ships fish by the following methods: trawling, gillnetting, and purse seining.

Decree 67/2014/ND-CP has created a breakthrough in capacity, technology, and methods of seafood exploitation; meeting the aspirations of the majority of people.fishermen; make an important contribution to the development of the fisheries industry towards industrialization, modernization and restructuring of the fisheries industry, while contributing to protecting maritime security and national sovereignty.

However, during operation, some ship owners encountered difficulties and problems, leading to debt.bankAccording to the report of the State Bank of Vietnam, Nghe An branch, as of February 28, 2021, there were 31 ships operating effectively, paying principal/interest as committed.

Representative of the State Bank of Vietnam, Nghe An branch, speaking at the meeting. Photo: Xuan Hoang

59 ships are operating at a low level, inefficiently, unable to pay principal/interest as committed, with outstanding debt of 438.4 billion VND, overdue principal debt of 121.74 billion VND. Of these, 51 customers have been transferred to bad debt with bad debt of 366.6 billion VND; 6 ships have been handed over for asset disposal with outstanding debt of 39.3 billion VND; 5 ships cannot operate due to risks during operation, outstanding debt of 39.1 billion VND.

Regarding the insurance policy under Decree 67/2014/ND-CP, from 2014 to 2019, 4,281 ships participated in insurance. The insurance premium supported by the State budget was over 82 billion VND. The insurance compensation amount was over 118 billion VND. From the end of 2019 to now, PJICO Nghe An Insurance Company has not implemented sales under Decree 67/2014/ND-CP.

A steel-hulled ship built with funding under Decree 67/CP in Hoang Mai town. Photo: Xuan Hoang

Removing difficulties for fishermen

At the meeting, the owners of 67/CP ships pointed out the difficulties and obstacles in the current seafood fishing process; the current situation of handling assets of overdue debt ships is still inadequate; especially many ships caught fire or had accidents at sea, although they bought insurance, the insurance company made it difficult for them to complete procedures and delayed payment...

Commercial banks in the province and the State Bank of the province propose debt collection solutions for ship owners with overdue debts.

Concluding the meeting, Vice Chairman of the Provincial People's Committee Hoang Nghia Hieu acknowledged the great contributions of fishermen in catching seafood, protecting the sovereignty of the sea and islands of the Fatherland... At the same time, he shared the difficulties with fishermen, while PJICO Insurance Company no longer sells insurance, many fishermen buy insurance from other insurance companies, and do not enjoy the support policies of the State... Seafood prices have decreased due to the impact of the Covid-19 epidemic; while seafood resources are decreasing, so the catch is not high...

Fisherman Le Hoi Hung in Quynh Lap commune (Hoang Mai town) said that in order for fishermen to continue going to sea to exploit seafood, banks need to have a solution to extend debt for ship owners. In particular, some ship owners had accidents at sea many years ago, but have not yet received insurance money. Photo: Xuan Hoang

The Vice Chairman of the Provincial People's Committee requested the Department of Agriculture and Rural Development to soon have a solution for ineffective ship owners, but have the ability to change jobs. For ship owners who intentionally delay paying debts... there should be a specific solution between the bank and the ship owner according to the provisions of law. At the same time, advise the Provincial People's Committee to have a direction to remove obstacles for each ship owner.

The Department of Agriculture and Rural Development is conducting research to advise the province on policies for fisheries development in the coming time, prioritizing the conversion of fishing occupations for fishermen.

Localities continue to propagate and popularize policies according to Decree No. 67/2014/ND-CP and Decree No. 17/2018/ND-CP so that fishermen can correctly understand the State's policies, including clearly informing ship owners about their legal responsibilities for their loan capital.

Districts and towns grasp and advise the Provincial People's Committee to promptly handle the problems and difficulties of fishermen, as well as the debt collection work of fleet 67.

The Vice Chairman of the Provincial People's Committee assigned the State Bank of Vietnam, Nghe An branch, to direct commercial banks to coordinate with the Provincial Steering Committee 67, local authorities of districts and communes, and ship owners based on the content of the ship owners' production and business plans that have been appraised and approved to review, analyze, evaluate, and classify cases of non-payment or non-payment of debts according to signed credit contracts to have specific and effective handling directions for each case.

For PJICO Insurance Company to promptly respond to the ship owners who have suffered risks and resolve the fishermen's files that have been dragging on for many years.

Accordingly, Vice Chairman of the Provincial People's Committee Hoang Nghia Hieu will request the Provincial People's Committee to propose to the Ministry of Finance and the Government to propose a policy on purchasing insurance. The Ministry of Finance is requested to study a plan to extend the debt repayment period for ship owners, to reduce difficulties for fishermen./.