Decision No. 118/1999/QD-TTg dated May 04, 1999 of the Prime Minister on provision of foreign-currency loans for a number of key projects
THE PRIME MINISTER OF GOVERNMENT
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
Hanoi, May 04, 1999
ON PROVISION OF FOREIGN-CURRENCY LOANS FOR A NUMBER OF KEY PROJECTS
THE PRIME MINISTER
Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Credit Institution Law No. 02/1997/QH10 of December 12, 1997;
At the proposal of Vietnam State Bank (in Official Dispatch No. 212/CV-NHNN1 of March 16, 1999 and Official Dispatch No. 307/CV-NHNN1 of April 13, 1999), as well as opinions of the Ministry of Planning and Investment (in Official Dispatch No. 2183/BKH/TC-TT April 9, 1999) and the Ministry of Finance (Official Dispatch No. 1673-TC/TCNH of April 12, 1999),
Article 1.- To permit the domestic commercial banks to use USD 400 million (four hundred million) from foreign-currency mobilized capital source to provide medium-term and long-term loans for a number of the State’s key projects in 1999.
Article 2.- The objects of foreign-currency loans are key projects decided by the Prime Minister.
Article 3.- Lending term and interest rates as well as other regulations not prescribed in this Decision shall comply with Vietnam State Bank’s regulations on medium-term and long -term loans.
Article 4.- The domestic commercial banks may directly provide or take part in providing foreign-currency loans for a project; if the loans amount provided by a bank exceed 15% of its own capital, it shall have to report the case to the Prime Minister for decision on case by case basis.
Article 5.- Enterprises having projects on borrowing foreign-currency capital shall have to work out plans for repayment of debts to banks in foreign currency(ies) from such projects’ foreign-currency revenues; but shall not have to mortgage their assets as loan security.
Article 6.- Vietnam State Bank shall have to direct commercial banks to promptly satisfy enterprises’ demands for foreign-currency capital to invest in the implementation of projects and to support projects without any sources of foreign-currency revenues in foreign-currency debt repayment.
Article 7.- The Ministry of Finance shall provide guarantee for enterprises that borrow foreign-currency capital from domestic commercial banks to invest in projects by the Prime Minister’s decisions; the modes of the Finance Ministry’s guarantee shall comply with regulations on foreign loan guarantee.
Article 8.- The Ministry of Planning and Investment shall select projects eligible for foreign-currency loans, carry out the procedures, for evaluation of the projects according to regulations on the construction and investment management, then report them to the Prime Minister for decision and approval on the investment.
Article 9.- Such projects with the Prime Minister’s decision to borrow foreign-currency capital from domestic commercial banks as: Phu My Steam End 2.l, Nam Con Son Gas, Noi Bai airport Terminal T.1 and Can Don hydroelectric project are also covered by this Decision.
Article 10.- This Decision takes effect after its signing.
Article 11.- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.
THE PRIME MINISTER OF GOVERNMENT
Nguyen Tan Dung