THE PRIME MINISTER
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 14/2009/QD-TTg
Hanoi, January 21, 2009
 DECISION
PROMULGATING THE REGULATION ON THE PROVISION OF GUARANTEE FOR ENTERPRISES TO BORROW LOANS FROM COMMERCIAL BANKS
THE PRIME MINISTER
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 16, 2002 Law on State Budget;
Pursuant to the February 12, 1997 Law on Credit Institutions and the May 16, 2004 Law
Amending and Supplementing a Number of Articles of the Law on Credit Institutions:
Pursuant to the November 29, 2005 Enterprise Law;
Pursuant to the Government's Decree No. 30/ 2008/NQ-CP of December 11, 2008. on urgent measures to curb economic decline, maintain economic growth and ensure social welfare;
At the proposal of the Minister of Finance,
DECIDES:
Article 1. To promulgate together with this Decision the Regulation on the provision of loan guarantee for enterprises to borrow loans from commercial banks lawfully operating in Vietnam.
Article 2. To assign the Vietnam Development Bank to provide guarantee for enterprises wishing to borrow loans from commercial banks for implementing investment projects or production and business plans under the Regulation issued together with this Decision.
Article 3. Local credit guarantee funds for small- and medium-sized enterprises shall operate under the Prime Minister's Decision No. 193/ 200l/QD-TTg of December 20. 2001, promulgating the Regulation on establishment and operation of credit guarantee funds for small- and medium-sized enterprises and Decision No. 115/2004/QD-TTg of June 25, 2004. amending and supplementing Decision No. 193/200l/QD-TTg of December 20, 2001. with some articles to be amended and supplemented as follows:
1. To replace Clause 2. Article 15 of Decision No. 193/200l/QD-TTg of December 20. 2001, with Clauses 4 and 5. Article 4 of the Regulation issued together with this Decision.
2. To replace Clause I, Article 16 of Decision No. 193/2001/QD-TTg of December 20, 2001, with Article 6 of the Regulation issued together with this Decision.
Article 4. This Decision takes effect on the dale of its signing.
Ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial-level People's Committees and the Chairman of the Management Board and the Director General of the Vietnam Development Bank shall implement this Decision.
 
PRIME MINISTER





Nguyen Tan Dung
 
REGULATION
ON PROVISION OF GUARANTEE FOR ENTERPRISES TO BORROW LOANS FROM COMMERCIAL BANKS
(Issued together with the Prime Minister's Decision No. 14/2009/QD-TTg of January 21, 2009)
Chapter I
GENERAL PROVISIONS
Article 1. Subjects eligible for loan guarantee
Subjects eligible for the Vietnam Development Bank's loan guarantee are enterprises of all economic sectors (including cooperatives) which have a maximum charter capital of VND 20 billion and employ up to 500 laborers (below referred to as enterprises).
Article 2. Scope of loan guarantee
1. The Vietnam Development Bank shall provide guarantee for enterprises to borrow loans from commercial banks lawfully operating in Vietnam to carry out investment projects on production and business development (borrowing loans for investment in fixed assets) or to implement production and business plans (borrowing working capital) in accordance with law.
2. Guarantee will not be provided to real estate consultancy and dealing and securities trading enterprises and enterprises providing services (excluding transportation, education and training and healthcare); and enterprises borrowing loans to pay debts owed under other credit contracts.
Article 3. Interpretation of terms
In this Regulation, the terms below a construed as follows:
1. Parties involved in a guarantee:
- The guarantor is the Vietnam Development Bank.
- The guaranteed is an enterprise.
- The guarantee is a commercial bank lawfully operating in Vietnam.
2. Guarantee deed means a written unilateral commitment of the guarantor to the guarantee that the guarantor shall perform financial obligations for the guaranteed if the guaranteed is unable to pay debts or fully pay debts as committed to the guarantee.
3. Loan guarantee contract means a written agreement conducted between the guarantor and the guaranteed under which the guarantor shall perform financial obligations for the guaranteed if the guaranteed is unable pay debts or fully pay debts as committed to the guarantee.