| THE STATE BANK OF VIETNAM ------------ No. 05/2009/TT-NHNN | SOCIALIST REPUBLIC OF VIETNAM Independence- Freedom- Happiness --------------- Hanoi, April 07, 2009 |
CIRCULAR
Stipulating in detail the provision of interest rate supports for organizations and individuals borrowing medium- and long-term bank loans for fresh investment in production and business development
Pursuant to Government’s Resolution No. 30/2008/NQ-CP dated December 11, 2008, on some urgent measures to curb economic decline, maintain economic growth and ensure social welfare;
Pursuant to the Prime Minister’s Decision No.443/QD-TTg dated April 4, 2009, on provision of interest rate supports for organizations and individuals borrowing medium- and long-tern bank loans for investment in production and business development;
The State Bank of Vietnam stipulates in detail the provision of interest rate supports for organizations and individuals borrowing medium and long-term bank loans for investment in production and business development (below referred to as interest rate supports) as follows:
Article 1.
Purposes of interest rate supports
The shall provide interest rate supports for Vietnam-dong medium- and long-term bank loans borrowed by organizations and individuals for investment in production and business or infrastructure development to reduce investment costs, increase fixed assets, improve production and business capacity and product competitiveness and create jobs.
Article 2.
Subjects and scope of application of regulations on interest rate supports
1. Credit institutions providing interest rate supports for Vietnam-dong medium- and long-term loans borrowed by organizations and individuals for investment (investment projects under which construction or procurement activities are carried out before or after April 1, 2009, with the construction or procurement duration conformable with the grace period committed in credit contracts), include:
a/ Commercial banks specified in Clause 1, Article 2, of the Prime Minister's Decision No.131/QD-TTg dated January 23, 2009, on provision of interest rate supports to organizations and individuals borrowing bank loans for production and business activities.
b/ Financial companies specified in Clause 1, Article 1, of the Prime Minister's Decision No. 333/QD-TTg dated March 10, 2009, amending and supplementing a number of articles of Decision No. 131/QD-TTg.
c/ The Vietnam Development Bank, which shall provide interest rate supports to entities eligible for preferential loans.
2. Borrowers eligible for interest rate supports include:
a/ Organizations and individuals borrowing loans from commercial banks or financial companies for implementation of new investment projects on production and business or infrastructure development at home under Article 1 of the State Bank Governor’s Decision No. 127/2005/QD-NHNN dated February 3, 2005, amending and supplementing a number of articles of the Regulation on provision of loans by credit institutions to borrowers, issued together with Decision No. 1627/2001/QD-NHNN dated December 31, 2001.
b/ Investors borrowing loans from the Vietnam Development Bank for implementation of new investment projects on production and business or infrastructure development at home under Point a, Clause 2, Article 1, and Article 6 of the Government's Decree No. 151/2006/ND-CP dated December 20, 2006, on the State's investment credit and export credit.
3. Loans eligible for interest rate support include Vietnam-dong medium- and long-term loans borrowed for the implementation of new investment projects on production and business or infrastructure development in various economic branches and sectors under credit contracts signed before or after April 1, 2009, and disbursed (once or several times) between April 1 and December 31, 2009:
a/ Loans provided by commercial banks and financial companies and classified according to reporting and statistics regulations applicable to units under the State Bank of Vietnam and credit institutions, issued together with the State Bank Governor's Decision No. 477/2004/QD-NHNN dated April 28, 2004, and Decision No. 143/TCTK/PPCD dated December 22, 1993, of the General Director of the General Statistics Office of Vietnam, promulgating the system of economic sectors of grades II, III and IV and the list of national economic sectors, including:
- Agriculture and forestry;
- Fisheries;
- Mining industry;
- Processing industry;
- Electricity, gas and water production and distribution;
- Construction industry (except for construction of office buildings for lease and construction and repair of houses for sale);
- Trading in and repair of motor vehicles, mopeds, motorcycles, personal articles and household appliances;
- Transportation, warehousing and communication;
- Scientific and technological activities.
b/ Investment loans provided by the Vietnam Development Bank to projects on the list of those eligible for investment credit issued together with the Government's Decree No. 106/2008/ND-CP dated September 19, 2008, amending and supplementing a number of articles of Decree No. 151/2006/ND-CP dated December 20, 2006, on the State's investment credit and export credit.
