This Circular amends and supplements certain articles of Circular No. 114/2014/TT-BTC and Circular No. 117/2014/TT-BTC regarding interest rate subsidies for commercial banks when implementing credit policies for building new and upgrading fishing vessels under Decree No. 67/2014/NĐ-CP and Decree No. 89/2015/NĐ-CP.
Scope of application
Commercial banks, ship owners
Key points
- Commercial banks implementing credit policies for building new and upgrading fishing vessels as stipulated in point b, d, e Clause 1 Article 4 of Decree No. 67/2014/NĐ-CP and Clauses 1, 2, 3, 4 Article 1 of Decree No. 89/2015/NĐ-CP (Article 2).
- Ship owners are exempt from interest rates in the first year and do not have to repay principal according to Clause 4 Article 1 of Decree No. 89/2015/NĐ-CP with a subsidized interest rate of 7% per annum (Article 4).
- From the second year onwards, the subsidized interest rate is the difference between the interest rate of commercial banks' loans and the interest rate that ship owners must pay according to Clause 3 Article 1 of Decree No. 89/2015/NĐ-CP (Article 4).
- The mechanism for subsidizing interest rates for implementing credit policies is specified in a separate Circular issued by the Ministry of Finance (Article 2).
- Criteria for classifying fish ports and anchorage areas for typhoon shelters are implemented according to Decision No. 1976/QĐ-TTg dated November 12, 2015 of the Prime Minister (Article 3).
🌐 Social impact of this document
- To reduce financial burdens for ship owners in building new and upgrading fishing vessels.
- Commercial banks are supported with interest rates when implementing credit policies as prescribed.
- To create favorable conditions for developing the fisheries industry through preferential credit policies.
- Design units for model vessels with total engine power of 400HP or more are supported with design costs (Article 7).
- Ship owners and commercial banks need to be aware of the regulations on subsidized interest rates to take advantage of the policy.
❓ Frequently asked questions
Are ship owners exempt from interest rates in the first year when borrowing to build new and upgrade fishing vessels?
Yes, ship owners are exempt from interest rates and do not have to repay principal in the first year according to Article 4.
What is the subsidized interest rate?
In the first year, it is 7% per annum. From the second year onwards, the subsidized interest rate is the difference between the interest rate of commercial banks' loans and the interest rate that ship owners must pay according to Article 4.
How are criteria for classifying fish ports defined?
Criteria for classifying fish ports are implemented according to point 1 Clause IV Article 1 of Decision No. 1976/QĐ-TTg dated November 12, 2015 of the Prime Minister (Article 3).
Which regulation governs the mechanism for subsidizing interest rates?
The mechanism for subsidizing interest rates for implementing credit policies is specified in a separate Circular issued by the Ministry of Finance (Article 2).
Are design units for model vessels with total engine power of 400HP or more supported with design costs?
Yes, design units selected and commissioned to design steel-hulled, new material-hulled, wooden-hulled fishing vessels, and distant-water fishing service support vessels with total engine power of 400HP or more are supported with design costs (Article 7).
Full text
CIRCULAR
Amending and supplementing certain provisions of Circular No. 114/2014/TT-BTC dated August 20, 2014 guiding interest rate subsidies for implementing credit policies under Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies to develop fisheries and Circular No. 117/2014/TT-BTC dated August 21, 2014 guiding the implementation of certain provisions of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies to develop fisheries
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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;
Pursuant to Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies to develop fisheries;
Pursuant to Decree No. 89/2015/NĐ-CP dated October 7, 2015 of the Government amending and supplementing certain provisions of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies to develop fisheries;
Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
At the proposal of the Director of the Department of Banking and Financial Institutions' Finance;
The Minister of Finance promulgates this Circular amending and supplementing certain provisions of Circular No. 114/2014/TT-BTC dated August 20, 2014 guiding interest rate subsidies for implementing credit policies according to Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies to develop fisheries and Circular No. 117/2014/TT-BTC dated August 21, 2014 guiding the implementation of certain provisions of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies to develop fisheries.
Article 1. Amending and supplementing certain provisions of Circular No. 114/2014/TT-BTC dated August 20, 2014 guiding interest rate subsidies for implementing credit policies according to Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies to develop fisheries as follows:
1. Amend Article 1 as follows:
"This Circular guides the procedures, steps, and documents for interest rate subsidies for implementing credit policies for building new vessels and upgrading vessels as provided for in points b, d, and e, Clause 1, Article 4 and Clause 1, Article 8 of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on some policies to develop fisheries (hereinafter referred to as Decree No. 67/2014/NĐ-CP); Clauses 2, 3, and 4, Article 1 of Decree No. 89/2015/NĐ-CP dated October 7, 2015 of the Government amending and supplementing certain provisions of Decree No. 67/2014/NĐ-CP (hereinafter referred to as Decree No. 89/2015/NĐ-CP)."
3. Add
"Commercial banks implementing credit policies for building new vessels and upgrading vessels as provided for in points b, d, and e, Clause 1, Article 4 of Decree No. 67/2014/NĐ-CP; Clauses 1, 2, 3, and 4, Article 1 of Decree No. 89/2015/NĐ-CP and guidelines of the State Bank of Vietnam."
3. Amend Clause 1 of Article 3 as follows:
"1. Implementing credit policies for building new vessels and upgrading vessels in accordance with the provisions at points b, d, and e, Clause 1, Article 4 of Decree No. 67/2014/NĐ-CP and Clauses 2, 3, and 4, Article 1 of Decree No. 89/2015/NĐ-CP and guidelines of the State Bank of Vietnam."
4. Amend Clause 1, Article 4 as follows:
"1. Interest rate subsidy level for commercial banks.
a) For the first year (12 months), from the date of disbursing the first loan, ship owners are exempted from interest and do not have to repay principal as stipulated in Clause 4, Article 1 of Decree No. 89/2015/NĐ-CP: The interest rate subsidy level is 7% per annum. In case the State Bank of Vietnam adjusts the lending interest rate lower than 7% per annum, the interest rate subsidy level will be the lending interest rate announced by the State Bank of Vietnam.
b) From the second year onwards of the credit contract, the interest rate subsidy level is the difference between the commercial bank's lending interest rate and the interest rate that ship owners must pay as stipulated in Clause 3, Article 1 of Decree No. 89/2015/NĐ-CP. In case the State Bank of Vietnam adjusts the lending interest rate lower than 7% per annum, the lending interest rate used as the basis for the subsidy will be the lending interest rate announced by the State Bank of Vietnam."
Article 2. Amend and supplement some articles of Circular No. 117/2014/TT-BTC dated August 21, 2014 guiding the implementation of certain provisions of Decree No. 67/2014/NĐ-CP dated July 7, 2014 of the Government on several policies for developing fisheries as follows:
1. Amending and supplementing Clause 2 of Article 1 as follows:
"2. The mechanism for compensating interest rates under the credit policy prescribed in Article 4 of Decree No. 67/2014/NĐ-CP and Article 1 of Decree No. 89/2015/NĐ-CP; the insurance policy prescribed in Clause 5, Article 1 of Decree No. 89/2015/NĐ-CP shall be implemented according to separate Circulars issued by the Ministry of Finance."
2. Amending and supplementing Clause 2, Article 3 as follows:
"2. Criteria for classifying fishing ports and anchorage areas for storm shelters:"
a) Classification of fishing ports: carried out in accordance with the provisions of Point 1, Clause IV, Article 1 of Decision No. 1976/QĐ-TTg dated November 12, 2015 of the Prime Minister on planning the system of fishing ports and anchorage areas for storm shelters for fishing vessels until 2020, with a vision to 2030.
b) Classification of anchorage areas for storm shelters: carried out in accordance with the provisions of Points 2 and 3, Clause IV, Article 1 of Decision No. 1976/QĐ-TTg dated November 12, 2015 of the Prime Minister on planning the system of fishing ports and anchorage areas for storm shelters for fishing vessels until 2020, with a vision to 2030".
3. Amending and supplementing Article 7 as follows:
Article 7. Support for design costs of steel-hulled, new-material-hulled, and wooden-hulled model vessels
1. Recipients of support: Units selected and commissioned to design model vessels for marine product exploitation, offshore marine service vessels with total main engine power of 400HP or more."
Article 3. Implementation Organization
This Circular takes effect from March 4, 2016.
2. During implementation, if any difficulties arise, they should be reported to the Ministry of Finance for consideration and resolution./.
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