The Decree on the interest rate support from the state budget for loans of enterprises, cooperatives and business households

Published on 24 - 05 - 2022
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On 20/5/2022, the Government has just issued the Decree No. 31/2022/ND-CP on the interest rate support from the State budget for loans of enterprises, cooperatives and business households.

Specifically, enterprises, cooperatives and business households are entitled to interest rate support in one of the following cases:

a) For the purpose of using the loan capital in one of the registered business sectors as specified in the Prime Minister's Decision No. 27/2018/QD-TTg dated July 6, 2018 promulgating the system of Vietnam's economic sectors, including: aviation, transportation and warehousing (H), tourism (N79), accommodation and catering services (I), education and training (P), agriculture, forestry and fishery (A), processing and manufacturing (C), software publishment (J582), computer programming and related activities (J-62), information services activities (J- 63); including construction activities directly serving the above-mentioned economic sectors but excluding construction activities for real estate business purposes specified in economic sector code (L) under the Decision No. 27/ 2018/QD-TTg.

b) The loan is used for the purpose of implementing a project to build social housing, housing for workers, or renovate old apartment buildings on the list of projects compiled and announced by the Ministry of Construction.

Conditions to receive interest rate support are: Customers who have requested interest rate support, meet the loan conditions in accordance with current laws on lending activities of credit institutions, foreign bank branches to customers.

The loan with interest rate support is a loan in Vietnam Dong, signed a loan agreement and disbursed in the period from January 1, 2022 to December 31, 2023, using the capital for the right purpose according to regulations and not supported with interest rates from the state budget according to other policies.

The loan is not eligible for interest support in the following cases: Loans with overdue principal balance and/or late payment interest balance are not eligible for interest support for interest payment obligations at the interest payment term whose repayment time falls within the period of overdue principal balance and/or late payment interest balance. The loan can only continue to receive interest support for the next interest payment term after the customer has fully paid the overdue principal balance and/or the late payment interest balance; the debt extension loans are not supported with interest for the grace period.

The interest rate support period is from the date of loan disbursement to the time when the customer pays off the original debt and/or interest as agreed between the commercial bank and the customer, in line with the funding source for interest support announced, but not beyond December 31, 2023.

By the time of debt repayment of each interest payment term, commercial banks shall reduce to customers the amount of loan interest supported with interest rates in the period according to the guidance of the State Bank of Vietnam. The Governor of the State Bank of Vietnam is responsible for guiding commercial banks to carry out interest rate support, in which stipulations on management methods to ensure that the total amount of interest rate support not exceed VND 40,000 billion.

Responsibilities of the People's Committees of the provinces and centrally-run cities: Make a list of projects to build social housing, housing for workers, renovate old apartment buildings and send them to the Ministry of Construction within 15 days from the effective date of this Decree and make adjustments and supplements to the list and send it to the Ministry of Construction when it is necessary, in which the disclosed contents and information include: Project investor; for projects on the construction of social housing and housing for workers: approved by competent authorities in accordance with law, allocated or leased land and completed site clearance, granted a construction permit or exempted from a construction permit in accordance with the construction law; for projects to renovate old apartment buildings: investment policies have been approved by competent state agencies in accordance with law; other information in accordance with relevant laws. To direct competent authorities in the area to coordinate with commercial banks to recover from customers the amount of interest subsidized by the state budget as prescribed in Clause 3, Article 9 of this Decree.

This Decree takes effect from the date of signing.

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