Circular No. 02/2016/TT-BTC guides interest rate support for organizations and individuals borrowing funds from credit institutions to implement projects investing in transportation means and infrastructure serving public passenger transport by bus in accordance with Decision No. 13/2015/QĐ-TTg dated May 5, 2015 of the Prime Minister on mechanisms and policies to encourage the development of public passenger transport by bus.

CIRCULAR

Guidelines on interest rate support for organizations and individuals borrowing from credit institutions to implement investment projects for vehicles and infrastructure serving public bus passenger transport in accordance with Decision No. 13/2015/QĐ-TTg dated May 5, 2015 of the Prime Minister on mechanisms and policies to encourage the development of public bus passenger transport.
To implement investment projects for vehicles and infrastructure serving public bus passenger transport.
Pursuant to Decision No. 13/2015/QĐ-TTg dated May 5, 2015 of the Prime Minister on mechanisms and policies to encourage the development of public bus passenger transport.
Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget.
The Minister of Finance issues this Circular on guidelines for interest rate support for organizations and individuals borrowing from credit institutions to implement investment projects for vehicles and infrastructure serving public bus passenger transport as follows.

This Circular provides guidance on interest rate support for organizations and individuals borrowing from credit institutions to implement investment projects for vehicles and infrastructure serving public bus passenger transport as stipulated in Clause 3, Article 4 and Clause 3, Article 5 of Decision No. 13/2015/QĐ-TTg dated May 5, 2015 of the Prime Minister on mechanisms and policies to encourage the development of public bus passenger transport (hereinafter referred to as Decision No. 13/2015/QĐ-TTg).

Pursuant to the Government Decree No. 215/2013/NĐ-CP dated December 23, 2013 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Organizations and individuals borrowing from credit institutions to implement investment projects for vehicles and infrastructure serving public bus passenger transport that meet the conditions specified in Decision No. 13/2015/QĐ-TTg and this Circular (hereinafter referred to as project sponsors).

At the proposal of the Director of the Department of Financial Affairs of Banks and Financial Institutions,

Local budget shall provide interest rate support for project sponsors eligible for interest rate support as stipulated in Clause 1, Article 2 of this Circular within the scope of the loan amount at the time of interest rate support assessment and within the loan amount limit eligible for interest rate support as prescribed by the People's Committee of the province or centrally governed city (hereinafter referred to as Provincial People's Committee).

Article 1. Scope of Regulation

Project sponsors may only enjoy interest rate support under Decision No. 13/2015/QĐ-TTg and the guidance provided in this Circular for loans from credit institutions for investment in vehicles and infrastructure serving public bus passenger transport. Project sponsors shall not be entitled to support for loans from credit institutions for other projects.

Article 2. Applicability

Project sponsors may only enjoy support for loans disbursed from July 1, 2015 (the effective date of Decision No. 13/2015/QĐ-TTg) to implement projects as stipulated in Clause 3, Article 4 and Clause 3, Article 5 of Decision No. 13/2015/QĐ-TTg, included in the list of eligible projects as decided by the Provincial People's Committee.

2. Agencies, organizations, and individuals related thereto.

Article 3. Principles of Support

In cases where loans (including principal and interest) are overdue or extended, interest rate support shall not be provided during the period of overdue repayment or extension. If the project sponsor has repaid the overdue debt and made timely repayments from the subsequent payment periods, the project sponsor shall continue to enjoy interest rate support as stipulated in Decision No. 13/2015/QĐ-TTg and the guidance provided in this Circular.

In cases where there are multiple support policies from different programs and projects for investment in vehicles and infrastructure serving public bus passenger transport, the project sponsor may choose to apply the highest support policy.

The duration of interest rate support is determined by the Provincial People's Committee but shall not exceed the actual loan period of each loan.

4. In cases where loans (including both principal and interest) are overdue for repayment or have been extended, interest rate support shall not be provided for the period during which the loan is overdue or has been extended. If the project owner has settled the overdue debt and repaid the loan on time from the subsequent repayment period onwards, the project owner shall continue to benefit from interest rate support as prescribed in Decision No. 13/2015/QĐ-TTg and the guidance provided in this Circular.

5. In cases where there are multiple support policies from different programs and projects for investment in passenger transport vehicles and infrastructure serving public bus transportation, the project owner may choose to apply the highest support policy.

6. The period for interest rate support shall be determined by the People's Committee of the province but shall not exceed the actual borrowing period of each loan.

Article 4. Conditions for receiving support

The project owner investing vehicles and infrastructure to serve public bus passenger transport shall be eligible for interest rate support on loans from credit institutions when meeting all of the following conditions:

1. Having an investment project for vehicles and an investment project for infrastructure to serve public bus passenger transport approved by the competent authority in accordance with the laws on investment.

2. Borrowing funds from credit institutions to implement the projects specified in Clause 1 of this Article and using borrowed funds for their intended purposes.

3. Ensuring current regulations in the business of public bus passenger transport.

Article 5. Level of Support, Duration of Support

Based on the socio-economic development goals in the locality and the local budget's balancing capacity, the People's Committee of the province shall specify the contents of interest rate support for investors implementing the projects stipulated in Article 4 of this Circular within the locality to ensure fair, transparent, and open local support, including:

1. The limit of borrowings eligible for interest rate support.

2. The level of interest rate support.

3. The duration of interest rate support.

Article 6. Methods of Support

Interest rate support shall be implemented according to the provisions of each locality and through the State Treasury based on complete documentation and procedures and confirmation by the competent authorities as prescribed in this Circular.

Article 7. Application Documents for Support

1. The application documents for support of the project owner include:

1.1. An application for interest rate support on borrowing from credit institutions for investment in vehicles and infrastructure to serve public bus passenger transport by the project owner, confirmed by the local government where the project is carried out (as per Appendix 1, Appendix 2 attached to this Circular).

1.2. A document approving the investment project for vehicles and infrastructure to serve public bus passenger transport by the competent authority as prescribed.

1.3. Credit agreement.

1.4. A list of outstanding loan balances, interest payments, and supporting documents or equivalent papers confirmed by the credit institution indicating that the project owner has borrowed funds from the credit institution, the amount of debt within the due period, and the use of borrowed funds for their intended purposes to implement the investment project for vehicles and infrastructure to serve public bus passenger transport.

1.5. A list or calculation of the amount of interest requested for support determined as follows:

a) The amount of interest supported for a loan is calculated according to the following formula:

Where:

- The interest rate support level is implemented according to the provisions of Article 5 of this Circular and is calculated in units of: % per month.

- n is the actual number of days of outstanding balance during the period being supported for interest rate.

- The outstanding loan balance eligible for interest rate support is the portion of the outstanding balance of the project owner at the credit institution within the scope of interest rate support according to the Decision of the Provincial People's Committee.

b) The total amount of interest supported for the project owner is the sum of the interest rate support amounts of all loans for which the project owner receives support.

2. The project owner may submit the application documents for support directly or via postal service. In case the project owner submits the documents via postal service, all documents and texts in the application must be original or certified copies, and the submission time is calculated based on the postmark. In case the project owner submits the documents directly, all documents and texts in the application are original or certified copies or copies accompanied by originals for verification.

Article 8. Procedures for Support

1. The project owner who falls within the scope of beneficiaries of the support policy shall submit the loan interest subsidy application dossier in accordance with Article 7 of this Circular to the Department of Transport where the project owner implements the project after completing the application dossier.

2. Based on the dossier of the project owner, within three working days from the date of receipt of the dossier, the Department of Transport will examine and review the dossier. If the dossier is found to be incomplete, invalid, or not meeting the conditions for support as prescribed, the Department of Transport will notify the project owner. Within fifteen working days from the date of receiving the complete dossier of the project owner, the Department of Transport will take the lead in assessing the application dossier for support, the amount of support, and compile opinions from the Department of Finance before submitting to the Provincial People's Committee for approval of the list of projects to be supported, the amount of support, and specific support periods for each project. The assessment results must be recorded in writing and kept at the Department of Transport together with the application dossier for support.

3. Based on the assessment results, the Provincial People's Committee will consider and issue a decision on the list of projects to be supported, the amount of support, and specific support periods for each project within ten working days from the date of receipt of the report requesting support from the Department of Transport.

The support decision for the project owner will be sent to the following agencies: the Department of Transport; the Department of Finance; the Department of Planning and Investment; the State Treasury and will be publicly announced.

4. Based on the provincial People's Committee's support decision for the project owner, the Department of Finance will issue an Order to disburse funds deposited in the State Treasury of the province or district.

5. Based on the Order to disburse funds issued by the Department of Finance, the State Treasury will make payments for the loan interest subsidy to the project owner.

Article 9. Handling in Case of Misuse of Loan Funds by the Project Owner

When discovering that the project owner has misused loan funds, the lending credit institution will handle it according to the law; simultaneously, it will immediately send a written notification to the Department of Transport, the Department of Finance, the Department of Planning and Investment, the State Treasury, and the Provincial People's Committee so that the Provincial People's Committee can stop providing loan interest subsidies to the project owner. The Provincial People's Committee will issue a Decision requiring the project owner to repay the amount of interest subsidy already provided by the budget (in case the local budget has provided interest subsidies) or not provide interest subsidies (in case the local budget has not yet provided interest subsidies); at the same time, it will direct relevant units of the locality to recover the amount due to the local budget.

Article 10. Budget Allocation for Implementation

Annually, based on the local budget capacity, the Provincial People's Committee will self-balance the budget to allocate sufficient funds for implementing loan interest subsidies at credit institutions for investing in vehicles and infrastructure serving public bus passenger transport in the locality.

Article 11. Financial settlement of the loan interest subsidy funds will be carried out in accordance with the provisions of the State Budget Law and guiding documents.

Article 12. Reporting System

Annually (no later than 120 days from the end of the fiscal year), the Provincial People's Committee will submit an annual report on the implementation of loan interest subsidies at credit institutions for investing in vehicles and infrastructure serving public bus passenger transport in the locality in accordance with Appendix 3 and Appendix 4 attached to this Circular to the Ministry of Transport; at the same time, it will submit to the Ministry of Finance for coordination and monitoring.

Article 13. Implementation Organization

1. Provincial People's Committees shall be responsible for:

a) Issuing detailed regulations on the limit of loans eligible for interest subsidies, the level of interest subsidies, and the period of interest subsidies for loans at credit institutions for investment in vehicles and infrastructure serving public bus passenger transport.

b) Directing and organizing the implementation of the interest subsidy policy stipulated in Decision No. 13/2015/QĐ-TTg and the guidance in this Circular.

c) Compiling the situation of interest subsidy implementation and sending it to the Ministry of Finance, the Ministry of Transport, and the Ministry of Planning and Investment annually.

2. The State Treasury of the province or district is responsible for transferring the support funds accurately, fully, and promptly to the project owner.

3. The Department of Transport is responsible for leading the assessment of the application dossier for interest subsidies, determining the outstanding loan balance of the project owner used for the correct purpose of investing in vehicles and infrastructure serving public bus passenger transport; inspecting and supervising the effective and purposeful use of interest subsidy funds.

4. Credit institutions are responsible for:

a) Confirming the Statement of Outstanding Loans and Interest or equivalent documents as the basis for determining whether the project owner has taken out loans at the credit institution, the outstanding loan balance of the project owner at the credit institution within the limit and has been used for the correct purpose to implement the project for vehicle investment and infrastructure serving public bus passenger transport.

b) Being responsible for monitoring and tracking the use of loan funds by the project owner; immediately notifying the Department of Transport, the Department of Finance, the Department of Planning and Investment, the State Treasury, and the Provincial People's Committee when discovering misuse of loan funds by the project owner.

5. Rights and Responsibilities of the Project Owner:

a) Enjoying preferential policies of the State as prescribed in Decision No. 13/2015/QĐ-TTg and the guidance in this Circular.

b) Adhering to the legal regulations on the implementation of the interest subsidy policy as stipulated in this Circular.

c) Repaying the amount of interest subsidy provided by the local budget according to the request of the Provincial People's Committee when the loan funds are misused.

Article 14. Effective Date

1. This Circular takes effect from January 20, 2016.

The interest subsidy policy prescribed in this Circular will be implemented from July 1, 2015 (the date Decision No. 13/2015/QĐ-TTg took effect).

2. In the course of implementation, if any difficulties arise, they should be reported to the Provincial People's Committee and the Ministry of Finance for consideration and resolution./.