| STATE BANK OF VIETNAM --------- No. 09/2009/TT-NHNN | SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness -------------- Hanoi, 05 May 2009 |
CIRCULAR
PROVIDING IN DETAILS FOR THE IMPLEMENTATION OF GIVING INTEREST RATE SUPPORT TO LOANS FOR PROCUREMENT OF MACHINE, EQUIPMENTS, MATERIALS TO SERVE AGRICULTURAL PRODUCTION AND MATERIALS FOR BUILDING DWELLING HOUSES IN RURAL AREAS
Pursuant to the Resolution No. 30/2008/NQ-CP dated 11 December 2008 of the Government on urgent solutions for preventing economic decline, maintaining economic growth, ensuring social security;
Pursuant to the Resolution No. 12/NQ-CP dated 6 April 2009 of the Government on regular meeting session of the Government in March 2009;P
Pursuant to the Decision No.497/QD-TTg dated 17 April 2009 of the Prime Minister on giving interest rate support to loans for procurement of machine, equipments, and materials to serve agricultural production and materials for building dwelling houses in rural areas;
After coming to united agreement with Ministry of Industry and Trade, Ministry of Finance and Ministry of Agriculture and Rural Development, the State Bank of Vietnam would like to provide in details for the implementation of giving interest rate support to bank loans in Vietnamese Dong by organizations, individuals to procure machines, equipments, materials to serve agricultural production and materials for building dwelling houses in rural areas(hereinafter referred to as interest rate support) as follows:
Article 1. Purpose of the interest rate support
The State provides interest rate support to short, medium-term loans in Vietnamese Dong by organizations, individuals (hereinafter referred to as borrowers) to procure machines, mechanical equipments, facilities, materials to serve agricultural production and materials for building dwelling houses in rural areas in order to reduce investment cost, improve production capacity and promote the development of industrial sector through stimulating the demand of investment and consumption in rural areas
Article 2. Subjects and scope of application of provisions on interest rate support
1. Credit institutions which are authorized to give interest rate support to short, medium term loans in Vietnamese Dong of borrowers to procure machine, equipments, facilities, materials to serve agricultural production and materials for building dwelling houses in rural areas, including:
a. Commercial banks as stipulated in paragraph 1 Article 2 of the Decision No.131/QD-TTg dated 23/01/2009 of the Prime Minister on giving interest rate support to organizations, individuals that borrow capital from banks to carry out production and business.
b. Finance companies as provided for in paragraph 1 Article 1 of the Decision No.333/QD-TTg dated 10/3/2009 of the Prime Minister on the amendment of, supplement to several articles of the Decision No.131/QD-TTg and guiding documents of the State Bank of Vietnam.
2. Borrowers, who are households, farm owners, individuals, cooperative groups, cooperatives, enterprises, borrow short, medium term loans in Vietnamese Dong to procure machine, equipments, facilities, materials to serve agricultural production and materials for building dwelling houses in rural areas.
3. Types of loan which are entitled to interest rate support are short, medium term loans in Vietnamese Dong under credit contracts entered into and disbursed within the duration from 1 May to 31 December 2009 for procurement of machine, equipments, facilities, materials to serve agricultural production and materials for building dwelling houses in rural areas, belonging to the detailed List of domestically produced goods entitled to interest rate support in accordance with provisions in the Decision No. 2095/QD-BCT dated 29 April 2009 of Ministry of Industry and Trade.
4. Short, medium term loans for procurement of machine, equipments, facilities, materials to serve agricultural production and materials for building dwelling houses in rural areas which have received the interest rate support in accordance with provisions in the Decision No. 131/QD-TTg and the Decision No. 443/QD-TTg dated 4 April 2009 of Prime Minister, shall not be entitled to interest rate support in accordance with provisions in the Decision No. 497/QD-TTg dated 17 April 2009 of Prime Minister and this Circular.
Article 3. Principle, conditions, term, amount of loan and interest rate support, application file for loan, mode of interest rate support
1. Principle of interest rate support is that commercial banks, finance companies shall provide loan to demands for short, medium term capital to procure machine, mechanical equipments, facilities, materials to serve agricultural production and materials for building dwelling houses in rural areas under the normal lending mechanism and perform the interest rate support in compliance with provisions of the Prime Minister and guidance of the State Bank of Vietnam.
2. Conditions to enjoy interest rate support for borrowers
a. To be certified by People’s Committee of village, ward, town let as subject entitled to loan with interest rate support under provisions of the Decision No. 497/QD-TTg.
b. To use loans for procurement of machine, mechanic equipments, facilities, materials to serve agricultural production and materials for building dwelling houses in rural areas, belonging to the detailed List of domestically produced goods entitled to interest rate support in accordance with provisions in the Decision No. 2095/QD-BCT dated 29 April 2009 of Ministry of Industry and Trade.
3. Term of interest rate support to loans under credit contracts entered into and disbursed within the duration from 1 May to 31 December 2009
a. Shall be 24 months at most since the date of disbursement for loans for procurement of machine, mechanic equipments, facilities to serve agricultural production, processing and computers; the interest rate support shall be performed from 1 May 2009 to 31 December 2011.
b. Shall be 12 months at most since the date of disbursement for loans for procurement of agricultural products, materials and construction materials for building dwelling houses; the interest rate support shall be performed from 1 May 2009 to 31 December 2010.
Loans entitled to interest rate support, which are overdue, shall be rescheduled, of which actual loan term exceeds the loan term entitled to interest rate support under applicable provisions, then the interest rate support shall not be applied to the period of time in excess of maturity date, the period of rescheduled time and period of time in excess of loan term entitled to interest rate support.
4. Amount of loan and interest rate support
a. In respect of machinery products, mechanical equipments, facilities to serve agricultural production and processing and computers: the maximum amount of loan shall be equal to 100% of goods value (except for computer, it shall not be in excess of 5 million dong/item), specific loan amount shall be considered and decided upon by commercial banks, finance companies in accordance with the normal lending mechanism. The amount of interest rate support shall be equal to 100% of loan interest rate;
b. In respect of agricultural products and materials: the maximum amount of loan shall be equal to 100% of goods value, but not in excess of 7 million dong/ha and specific loan amount shall be considered and decided upon by commercial banks, finance companies in accordance with the normal lending mechanism. The amount of interest rate support shall be equal to 4% of loan interest rate per annum.
c. In respect of construction materials for building dwelling houses: the maximum amount of loan shall be equal to 100% of goods value, but not in excess of 50 million dong; specific loan amount shall be considered and decided upon by commercial banks, finance companies in accordance with the normal lending mechanism. The amount of interest rate support shall be equal to 4% of loan interest rate per annum.
5. Application file for loan with interest rate support:
- An application for loan to be certified by People’s Committee of village, ward, town let as subject entitled to loan with interest rate support under provisions in the Decision No. 497/QD-TTg;
- Plan or scheme of using machines, mechanic equipments, facilities, materials for production, using construction materials to build dwelling houses;
- Credit contracts
- Contract of loan security in accordance with provisions of applicable laws on secured transactions in case of secured loan.
- Other documents of the application file under the normal lending mechanism.
6. Mode of interest rate support is that commercial banks, finance companies shall, upon collecting loan interests, deduct amount of interest payable to borrowers, equal to the amount of loan interests entitled to interest rate support. The State Bank of Vietnam shall transfer amount of loan interests already used for interest rate support on the basis of making report on amount of interest rate support of commercial banks, finance companies.
Article 4. Process and responsibilities of borrower, commercial bank, finance company which performs the interest rate support
1. For borrower whose loan is entitled to the interest rate support
a. Within the period from 01 May to 31 December 2009, upon arising the first loan at the lending commercial bank, finance company, the borrower shall submit an application for the interest rate support to that commercial bank, finance company in line with the Appendix 01 of this Circular.
b. To supply, in full, honest manner, all information, documents to prove his purpose of borrowing loan with the interest rate support and take responsibility for the accuracy of such provided information, documents. To use loan funds for the due purpose which is subject entitled to the interest rate support as stated in the credit contract. If the borrower fails to use the loan funds for the due purpose according to the subject of interest rate support, he shall not be entitled to the interest rate support and shall be required to refund the amount of previously supported loan interest to the commercial bank, finance company and be dealt with in accordance with provisions of applicable laws.
c. To implement provisions of the commercial bank, finance company on procedures of capital borrowing, interest rate support and reporting regime.
d. To account the payment of loan interests in correspondence with the right interest amount payable to the commercial bank, finance company after having obtained the interest rate support under provisions of current laws.
