Decision No. 181/2007/QĐ-TTg Issuing the Regulation on Rescheduling Loans from Foreign Borrowing and Aid Funds of the Government

Pursuant to …;

Issuing the Regulation on Re-lending from Government Foreign Loans and Aid Funds

____________________________

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to Decree No. 134/2005/NĐ-CP dated November 1, 2005, issued by the Government on the Management of Foreign Borrowing and Debt Repayment;

Pursuant to Decree No. 131/2006/NĐ-CP dated November 9, 2006, issued by the Government on the Management and Use of Official Development Assistance;

Considering the proposal of the Minister of Finance, 

DECISION:

Article 1. This Decision promulgates the Regulation on Re-lending from Government Foreign Loans and Aid Funds.

Article 2. This Decision shall take effect fifteen days after its publication in the Official Gazette.

THE MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, AND CHAIRMEN OF PROVINCE AND CITY PEOPLE'S COMMITTEES DIRECTLY UNDER THE CENTRAL GOVERNMENT SHALL BE RESPONSIBLE FOR ENFORCING THIS DECISION./.

                                                                                    PRIME MINISTER

                                                                                    Nguyễn Tấn Dũng

REGULATIONS

VOn re-lending from government foreign loans and aid funds
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(Issued together with Decision No. 181/2007/QĐ-TTg dated November 26, 2007 of the Prime Minister)

PART I

GENERAL PROVISIONS

Article 1. Scope of application

This Regulation governs the relationships arising when the Government re-lends domestic organizations, enterprises, and local authorities from government foreign loan and aid funds.

Article 2. Definitions

In this Regulation, terms used have the same meanings as defined in Decree No. 134/2005/NĐ-CP dated November 1, 2005, issued by the Government on the Management of Foreign Borrowing and Debt Repayment. The following terms are understood as follows:

1. "Re-lending" means the Ministry of Finance acting on behalf of the Government:

a) Directly or through an authorized Re-lending Agency, lending all or part of foreign capital from government foreign loans and aid funds to enterprises for investment projects that can recover capital, or;

b) Lending to domestic credit institutions to further lend under a credit program or credit component of a project using foreign loans, or;

c) Lending to People's Committees of provinces and centrally-administered cities according to the provisions of the law or the Prime Minister's Decision.

2. "Foreign Loan or Aid Agreement" means international treaties signed by the Government or the State of Vietnam with foreign parties to provide capital for Vietnam to implement programs and projects.

3. "Sponsor or Lender" means the foreign party providing finance for programs and projects.

4. "Delegation Contract for Re-lending" means the Contract signed between the Ministry of Finance and the Re-lending Agency.

5. "Bookkeeping Exchange Rate" means the exchange rate specified by the Ministry of Finance for accounting and reporting foreign currency revenues and expenditures within the state budget.

6. "Re-lending Fee" means the fee collected by the Government through the Re-lending Agency from the borrower in cases of re-lending commercial foreign loans of the Government. The re-lending fee is determined and applied similarly to the level of the Government guarantee fee set forth in the Regulation on the Issuance and Management of Government Guarantees for Foreign Loans issued pursuant to Decision No. 272/2006/QĐ-TTg dated November 28, 2006 of the Prime Minister.

7. "Re-lending Service Fee" means the fee paid by the Ministry of Finance to the Re-lending Agency in cases where the Ministry of Finance delegates the Re-lending Agency to manage and recover the re-lent amount without bearing credit risk.

Article 3. Conditions for Refinancing

1. Conditions for enterprises and economic organizations:

a) Having programs and projects using foreign loans and grants that meet the following criteria:

- In line with the national investment planning;

- Completing investment procedures as stipulated by current regulations;

- Being permitted by the Government to use loans and grants and obtaining approval from the lender (if required by the foreign loan agreement);

- Ensuring the ability to repay debt according to the financial plan reviewed as prescribed.

b) Having sound financial conditions, without losses in the three most recent consecutive years, without overdue debts with credit institutions, and without overdue debts on refinanced loans from government foreign loans and grants at the time of refinancing, and not having outstanding debts overdue with the state budget. For enterprises that have not been operating for three years, they must have a commitment from the owner or parent company.

c) Providing collateral for refinanced loans as required by the refinancing agency, except when exempted from providing collateral as provided for in Article 11 of this Regulation.

2. Conditions for credit institutions:

a) Being permitted by the Government to use loans and grants and obtaining approval from the lender (if required by the foreign loan agreement);

b) Ensuring the ability to repay debt according to the financial plan reviewed.

3. Conditions for People's Committees of provinces and centrally-administered cities:

a) Being authorized by law or the Prime Minister to refinance from government foreign loans and grants;

b) The loan funds being used for development investments within the local budget expenditure responsibilities;

c) The local budget ensuring the ability to repay the debt.

Chapter II

CONDITIONS FOR REFINANCING

Section 1

GENERAL CONDITIONS APPLICABLE TO ALL REFINANCING CASES

Article 4. Currency for Refinancing

1. For ODA funds of the Government: the refinancer may choose the currency for refinancing as domestic currency (Vietnamese Dong) or the original foreign currency borrowed from abroad, depending on their repayment capacity. The exchange rate for converting foreign currency to Vietnamese Dong is the accounting rate specified by the Ministry of Finance.

2. For commercial foreign loans of the Government: the refinancer must accept the debt in the original foreign currency borrowed by the Government from abroad, except in special cases decided by the Prime Minister.

3. For refinancing to provincial and centrally-administered city People's Committees: the currency for refinancing is the original foreign currency borrowed by the Government from abroad.

Article 5. Currency for Debt Repayment

1. For ODA funds: in principle, the refinancer repays the debt in the same currency as the refinancing received. If the refinancer requests repayment to the Government in Vietnamese Dong or other freely convertible foreign currencies different from the refinancing currency, the refinancing agency applies the foreign exchange rate specified by the Ministry of Finance or the agreed rate recorded in the refinancing agreement to collect the debt.

2. For commercial loans: the currency for debt repayment is the original foreign currency borrowed. If repaid in Vietnamese Dong, the refinancing agency applies the selling rate of the service bank or the Vietnam Commercial Bank if there is no service bank to collect the debt.

Article 6. Value of Refinancing

1. The value of refinancing recorded in the refinancing agreement is determined based on the value of the foreign loan or grant agreement signed with the donor or lender for each program or project. In cases where the foreign loan or grant agreement covers multiple projects but does not specify allocation levels for each program or project, the value of refinancing is determined based on the government's decision on capital allocation for loans and grants.

2. The actual debt value is accumulated based on each drawdown.

, Clause 1, Clause 2 Article 7a of this Regulation.. Time of Debt Acceptance

1. For drawdowns made through letter of credit (L/C), direct payment, or repayment methods:

The time the refinancer accepts debt from the refinancing agency is the disbursement date notified by the donor.

2. For drawdowns made through special accounts or advance accounts:

When multiple projects or programs under the same loan or grant agreement share the same special account or advance account, the time the refinancer accepts debt from the refinancing agency is the drawdown date from the account.

When the loan or grant agreement covers only one project and uses a single special account or advance account, the time the refinancer accepts debt from the refinancing agency is the date the donor or lender transfers funds into the account.

3. Based on the disbursement notification from the donor or lender or payment vouchers from the special account or advance account, the Ministry of Finance will issue a notification or record receipts and payments for the refinancing agency for the disbursement value, by day, for each project or program, and according to the loan or grant agreement.

The refinancing agency is responsible for notifying the refinancer to accept and repay the debt according to the notification or the recorded payment amount by the Ministry of Finance. If the refinancer disagrees with the figures in the notification or recorded payment by the Ministry of Finance, the refinancing agency immediately reports to the Ministry of Finance for resolution.

Article 8Number of Interest Calculation Days

1. For commercial loans: the number of days for interest calculation on refinancing and late payment interest is calculated according to the provisions of the foreign loan agreement.

2. For ODA funds: interest on refinancing and late payment interest is calculated based on the actual number of days the funds are used and on the basis of a year consisting of 360 days.

Article 9. Late Payment Interest

If the refinancer fails to repay the principal, interest, fees for refinancing, and other payable amounts on time, they must bear late payment interest at a rate equal to 150% of the interest rate recorded in the refinancing agreement or the late payment interest rate recorded in the original loan agreement, whichever is higher. Late payment interest is calculated from the due date until the actual repayment date if it is more than 15 days overdue.

Article 10. Types of Fees

The refinancer must pay the following types of fees:

1. Foreign fees: based on specific loan agreements, foreign fees may include management fees, commitment fees, drawdown fees, insurance fees, and other fees. The borrower shall directly pay these fees to the lender. In cases where the Government pays the aforementioned foreign fees, the borrower must reimburse the state budget.

2. Service fees collected by the Bank: The borrower shall directly pay such service fees to the Bank in accordance with the Bank's regulations.

Article 11. Collateral assets and loan guarantee measures

1. The borrower must provide collateral assets or use other guarantee measures to cover credit risks and other potential risks, including assets formed from the Government’s re-lent funds and/or other assets as prescribed by law, except for cases where the borrower is exempted from providing collateral assets or guarantees, including:

a) Provincial People's Committees under the Central Government;

b) Financial and credit organizations;

c) Cases approved by the Prime Minister to apply for credit without collateral or to be exempted from providing collateral assets or guarantees (in whole or in part).

2. The pledge of collateral assets and guarantees shall be reflected in the Re-lending Agreement. The lending agency is responsible for completing legal documents regarding collateral assets and guarantees in accordance with the law.

3. The lending agency is responsible for managing and disposing of collateral assets and guarantees for Government re-lent loans in accordance with general regulations on the management of collateral assets and loan guarantees of that agency.

In the case where the Ministry of Finance is the lending agency, the Ministry of Finance shall implement the management and disposal of collateral assets and guarantees for re-lent loans according to the provisions of the Regulation on the Issuance and Management of Government Guarantees for Foreign Loans issued pursuant to Decision No. 272/2006/QĐ-TTg dated November 28, 2006 by the Prime Minister.

Section 2

CONDITIONS FOR RE-LENDING APPLICABLE TO SPECIFIC CASES

Article 12. Re-lending for commercial foreign loans of the Government

1. The re-lending interest rate is determined based on the foreign borrowing interest rate plus the re-lending fee.

2. Re-lending period:

a) For re-lending under programs/projects of enterprises:

The principal repayment term is determined by the Ministry of Finance based on the project investment repayment period approved by the competent authority and the reassessment results of the lending agency, but not exceeding the foreign borrowing period.

The grace period is determined by the Ministry of Finance based on the construction period until the project is put into operation as stated in the project investment document approved by the competent authority and the reassessment results of the lending agency.

b) For programs/credit limits for commercial conditions for credit institutions: the re-lending period is based on the foreign borrowing conditions.

Article 13. Re-lending for ODA funds of the Government for enterprises' re-lending under programs/projects

1. Re-lending interest rate:

a) In the case of re-lending in Vietnamese dong:

The re-lending interest rate is determined based on the economic-industrial sector and does not exceed the State's development credit interest rate during each period. Certain sectors and fields listed in Appendix I attached to this Regulation enjoy preferential interest rates at 33.3% and 55.5% of the State's development credit interest rate. This interest rate includes the re-lending service fee. If the State's development credit interest rate changes, the preferential interest rates will be adjusted accordingly.

The re-lending interest rate remains unchanged throughout the re-lending period.

b) In the case of re-lending in foreign currency:

The re-lending interest rate is set at the Vietnamese dong re-lending interest rate specified in sub-item (a) above minus the corresponding foreign exchange risk ratio of the re-lending currency, but not lower than the foreign borrowing interest rate and not higher than two-thirds (2/3) of the commercial reference interest rate (CIRR) published by the Organization for Economic Cooperation and Development (OECD) at the time of determining the re-lending interest rate.

Based on the fluctuation of the Vietnamese dong exchange rate against each type of foreign currency and the average inflation index over the past five years in Vietnam compared to the United States, the European Union, and Japan, the foreign exchange risk rate applied to the three types of foreign currencies, namely US Dollar (USD), Euro (EUR), and Japanese Yen (JPY), from the effective date of this Regulation until March 15, 2008, is stipulated in Appendix II. Annually, no later than March 15, the Ministry of Finance calculates and publishes the foreign exchange risk rate for the three types of foreign currencies applicable until March 15 of the following year. In exceptional cases of significant fluctuations, the Ministry of Finance may publish the foreign exchange risk rate during the application period.

In cases where the original currency in the loan agreement differs from the three types of foreign currencies mentioned above, the foreign exchange risk rate is applied according to the USD foreign exchange risk rate.

The re-lending interest rate, once determined, remains unchanged throughout the re-lending period.

2. Re-lending period

a) The principal repayment term is determined by the Ministry of Finance in line with the project investment repayment period approved by the competent authority for each project or the reassessment results of the lending agency;

b) The grace period is determined by the Ministry of Finance based on the construction period until the program/project is put into operation as stated in the project investment document approved by the competent authority and the reassessment results of the lending agency;

c) The start date for calculating the grace period and the repayment term is the first capital withdrawal date of the program/project (unless otherwise required by the lender);

d) The borrower may repay the loan ahead of schedule, however, they must notify the lending agency and the Ministry of Finance in writing at least 30 days before the early repayment.

Article 14. Re-lending for ODA funds for programs/credit limits of credit institutions

1. Re-lending interest rate:

a) In case of borrowing in Vietnamese Dong: the interest rate for re-lending shall be determined in accordance with the provisions of point a, Clause 1, Article 13 of this Regulation;

b) In case of borrowing in foreign currency: the interest rate for re-lending shall be determined in accordance with the provisions of point b, Clause 1, Article 13 of this Regulation;

c) Credit institutions have the right to decide the interest rate for lending to the final users of capital and bear credit risks for such lending. Credit institutions enjoy the difference between the interest rate on loans made and the interest rate on re-loans from the Ministry of Finance.

2. Re-lending period:

The term of re-lending is equal to the term of the ODA loan agreement of the Government but shall not exceed twenty years (including grace periods).

Article 15. Re-lending to People's Committees of provinces/cities directly under the Central Government

1. Currency for re-lending: foreign currency according to the loan agreement signed between the Government and the financier.

2. Interest rate for re-lending: equal to the interest rate on foreign borrowing of the Government.

3. Term of re-lending: including the repayment period and grace period remaining unchanged according to the foreign loan agreement of the Government.

Article 16. Special cases

If the financier requires re-lending under conditions different from those stipulated in this Regulation of the Government, the Ministry of Finance shall take the lead in soliciting opinions from relevant agencies, report to the Prime Minister for decision.

Article 17. Service fee for domestic re-lending

1. The service fee for re-lending shall be calculated at a rate of 1.5% on the actual amount recovered (including principal, interest, and late interest if any), regardless of the currency of recovery.

2. The service fee for re-lending shall be reported to the Ministry of Finance by the re-lending agency according to each collection period, and the re-lending agency is permitted to deduct the service fee from the actual amount recovered before transferring it to the Ministry of Finance.

Chapter III

PROCEDURE AND ADMINISTRATIVE PROCEDURES FOR RE-LENDING

Article 18. Form of Authorization for Re-lending

Depending on specific conditions, the Ministry of Finance will negotiate with the agencies or organizations authorized by the Ministry of Finance to implement re-lending to carry out one of the following two forms:

1. For re-lending under programs/projects: the re-lending agency shall manage and recover the re-lending amount but shall not bear credit risk. In this case, the re-lending agency shall enjoy the service fee for re-lending as stipulated in Article 17 of this Regulation.

2. For re-lending under credit limits of credit institutions' programs: the re-lending agency shall select the Borrower, be responsible for appraising the re-lending project, setting the interest rate for re-lending to the Borrower, and bear credit risk. In this case, the re-lending agency shall enjoy the difference between the interest rate on loans to the final borrower and the interest rate on loans from the Ministry of Finance.

Article 19. Appraisal and Approval of Re-lending Programs/Projects

1. For ODA loans re-lent to enterprises under programs/projects:

The Ministry of Planning and Investment is the leading agency, coordinating with the Ministry of Finance to submit to the Prime Minister for approval the list of projects eligible for re-lending from government foreign loans and aid before signing international agreements or project lists with foreign countries.

The appraisal and approval of projects shall be carried out in accordance with Decree No. 131/2006/NĐ-CP dated November 9, 2006, promulgating the Regulations on Management and Use of Official Development Assistance Funds; Decree No. 134/2005/NĐ-CP dated November 1, 2005, promulgating the Regulations on Loan and Foreign Debt Repayment Management; and Decree No. 108/2006/NĐ-CP dated September 22, 2006, detailing and guiding the implementation of certain provisions of the Investment Law. The appraisal agency is responsible for the effectiveness and debt repayment capacity of the project to the state budget and bears legal responsibility for the results of the appraisal.

The re-lending agency is responsible for re-appraising the financial plans of re-lending projects, the financial capacity of the Borrower, and reporting the results of the appraisal to the Ministry of Finance before signing the Re-lending Agreement.

2.

The Ministry of Finance shall conduct an appraisal of the plan for using borrowed funds and repaying debts of credit institutions participating in the program before signing the Re-lending Agreement.

Credit institutions shall lend to the final users of capital, be responsible for appraising projects, and select borrowers consistent with the agreed credit program with the financier or Lender, while bearing all risks during the re-lending process for these entities.

3.

The State Bank of Vietnam shall conduct an appraisal of the plan for using borrowed funds and repaying debts of credit institutions participating in the program and report the results of the appraisal to the Ministry of Finance.

Credit institutions lending to the final users of capital shall be responsible for appraising projects and selecting borrowers consistent with the agreed credit program with the financier or Lender, while bearing all risks during the re-lending process for these entities.

4. For commercial loans of the Government re-lent to enterprises:

The re-lending agency is responsible for re-appraising the financial plans of re-lending projects, the financial capacity of the Borrower, and reporting the results of the re-appraisal to the Ministry of Finance before signing the Re-lending Agreement.

5. Re-lending to People's Committees of provinces/cities directly under the Central Government:

The Ministry of Finance shall appraise the debt repayment capacity of local budgets in accordance with current regulations on budget decentralization.

In cases where the Ministry of Finance is the re-lending agency for the projects mentioned in points 1 and 4 above, the re-appraisal of financial plans shall be carried out in accordance with the regulations on the issuance and management of government guarantees for foreign loans issued pursuant to Decision No. 272/2006/QĐ-TTg dated November 28, 2006, of the Prime Minister.

Article 20. Procedure and Administrative Procedures for Re-lending

1. Determining Conditions for Re-lending:

The Borrower shall present to the Ministry of Finance and the re-lending agency the following documents as the basis for determining the conditions for re-lending:

- Project documentation or program/credit limit documentation approved by the competent authority;

- Investment approval decision by the competent authority;

- Prime Minister's document allowing the use of government foreign loans and aid.

- Financial reports for the last three years (for operating enterprises/economic organizations); in cases where enterprises have not been operating for three years, they must provide financial reports of the parent company or strategic shareholders and commitment letters from the supervising authority or parent company, strategic shareholders ensuring debt repayment capacity;

- Financial plan for using and repaying borrowed capital based on reference to the framework conditions for loan refinancing under this Regulation.

Within thirty days from the date of receiving all valid documents mentioned above, the Refinancing Lending Agency shall re-evaluate the financial plan of the project, the borrower's financial capacity, and send the evaluation results to the Ministry of Finance. Based on the re-evaluation results, the Ministry of Finance will determine specific refinancing loan conditions for the project according to the framework conditions of this Regulation. In special cases where the framework conditions for refinancing loans cannot be implemented, the Ministry of Finance will seek opinions from relevant agencies and report to the Prime Minister for decision.

If the project is determined to lack the ability to repay debts according to the loan conditions announced by the Ministry of Finance, the Ministry of Finance will report to the Prime Minister to decide not to allocate funds for these programs and projects.

2. Signing the Delegation Agreement for Refinancing Loans

After determining specific refinancing loan conditions or after being approved by the Prime Minister, within fifteen days, the Ministry of Finance will sign the Delegation Agreement for Refinancing Loans with the Refinancing Lending Agency based on the general principles attached as Appendix III.

3. Signing the Refinancing Loan Agreement:

The Refinancing Lending Agency will sign the Refinancing Loan Agreement with the Borrower based on the conditions recorded in the Delegation Agreement for Refinancing Loans signed with the Ministry of Finance.

After signing the Refinancing Loan Agreement, the Refinancing Lending Agency will send one copy to the Ministry of Finance for coordination and management oversight.

4. Debt Collection Procedures:

Based on notifications of each drawdown of funds from sponsors or lenders or notifications from the service bank regarding payments from a special account, the Ministry of Finance will record government revenue and expenditures for the Refinancing Lending Agency to receive funds and notify the Borrower of the debt. In cases where the Ministry of Finance directly refinances, the Borrower will directly receive the debt from the Ministry of Finance.

Immediately upon receipt of the notification of the end of the drawdown period under the loan agreement or foreign aid agreement, the Ministry of Finance will notify the Refinancing Lending Agency or the Borrower of the final amount of debt received by the Borrower.

Article 21. Recovery of refinanced loans

The Borrower will fulfill timely and full repayment obligations as stipulated in the Refinancing Loan Agreement to the Refinancing Lending Agency.

The Refinancing Lending Agency will fulfill timely and full repayment obligations as stipulated in the Delegation Agreement for Refinancing Loans to the Foreign Debt Repayment Reserve Fund managed by the Ministry of Finance according to detailed guidelines issued by the Ministry of Finance. In cases where the Ministry of Finance delegates the Refinancing Lending Agency to directly repay foreign debts, the Refinancing Lending Agency will only transfer the remaining amount to the Ministry of Finance after fulfilling repayment to foreign creditors.

In cases of policy changes or adjustments to refinancing loan conditions, the Refinancing Lending Agency or the Ministry of Finance will not refund previously recovered refinancing loans.

Article 22. Allocation of State Management Responsibilities for Refinancing Loans from Government Foreign Loans and Aid

1. The Ministry of Planning and Investment shall be responsible for:

a) Lead and coordinate with the Ministry of Finance to develop and submit to the Prime Minister for approval the list of programs and projects eligible for full or partial refinancing from government foreign loans and aid;

b) Coordinate with the Ministry of Finance to prepare proposals for raising and plans for using commercial loan funds to be submitted to the Prime Minister for consideration and decision on a case-by-case basis.

2. The Ministry of Finance, the central agency responsible for state management of refinancing loans from government foreign loans and aid, has the responsibility to:

a) Participate with the Ministry of Planning and Investment in developing and submitting to the Prime Minister for approval the list of programs and projects eligible for refinancing from government ODA before the signing of international framework agreements or project lists with foreign countries;

b) Annually review and publish the interest rate framework applicable to economic and technical sectors and exchange rate risk levels specified in Point 1 of Article 13 of this Regulation based on market finance fluctuations, no later than January 15, and make adjustments if necessary;

c) Lead and coordinate with the Refinancing Lending Agency and related agencies to determine specific refinancing loan conditions for programs and projects utilizing government foreign loans and aid according to the framework conditions of this Regulation;

d) Sign Delegation Agreements for Refinancing Loans with the Refinancing Lending Agency or Refinancing Loan Agreements with Borrowers in cases where the Ministry of Finance directly refinances;

đ) Supervise, manage, and recover refinanced loans according to the provisions of the Delegation Agreement for Refinancing Loans, Ancillary Agreement, or Refinancing Loan Agreement;

e) Regularly or at the request of the Prime Minister, report annually on the management, utilization, and recovery of refinanced loans from government foreign loans and aid.

3. The State Bank of Vietnam has the responsibility to:

Conduct evaluations of the use of loan funds and debt repayment plans of credit institutions participating in credit limit programs when the Ministry of Finance refinances credit institutions' programs and credit limits under commercial conditions.

4. The Refinancing Lending Agency has the responsibility to:

a) Re-evaluate the financial plans of refinancing loan projects and programs and the financial capacity of the Borrower before signing the Refinancing Loan Agreement;

b) Manage and supervise the use of refinanced loan funds by the Borrower. Record and account for refinanced loans clearly for each Borrower;

c) Complete legal documentation, manage, and handle collateral and other assets provided by the Borrower as security for the loan.

d) Apply necessary measures consistent with the law to recover the loaned capital from the borrower fully and on time, and transfer it into the Foreign Debt Repayment Reserve Fund in accordance with the conditions stipulated in the Loan Agreement and the Delegation Contract for Lending.

đ) Provide information and reports related to the implementation of the program or project to the Ministry of Finance, the financier, or the lender periodically every quarter or at any time upon request.

e) In case the Borrower is unable to repay part or all of the debt, after applying all necessary measures, the following actions must be taken:

- Repay the debt on behalf of the Borrower if the Lending Agency is authorized by the Ministry of Finance to lend under a risk-bearing method.

- Report to the Ministry of Finance and the Project Appraisal Agency for appropriate action if the Lending Agency is authorized by the Ministry of Finance to lend under a non-risk-bearing method.

g) Report to the Ministry of Finance about enterprises and organizations that have received loaned funds but fail to repay the debt on time, so they can be included in a list of entities not eligible to receive further loans. This list will be announced annually by the Ministry of Finance to the Lending Agencies to prevent them from processing loan applications from these entities.

5. The Borrower shall be responsible for:

a) Managing and using the loaned capital according to the approved purpose in the investment report or feasibility study report of the project, which has been approved by the competent authorities.

b) Fulfilling the repayment obligations to the Lending Agency in full and on time in accordance with the conditions specified in the Loan Agreement signed with the Lending Agency.

c) Adhering to the provisions regarding collateral and other security measures for the loan as stipulated in Article 11 of this Regulation.

d) Providing information and reports related to the implementation of the program or project to the Lending Agency, the Ministry of Finance, and the financier or lender on a quarterly basis or at any time upon the Lending Agency's request, and promptly informing these agencies of any situations causing delays in the implementation of the program or project and any changes related to the program or project.

đ) Be legally responsible for the accuracy of the information provided to the Lending Agency.

Chapter IV

OTHER PROVISIONS

Article 23. Non-exemption of liability and priority order for repayment of loaned capital

1. Non-exemption of liability:

All claims and disputes arising from commercial contracts shall be resolved by the parties to the contract, and such claims and disputes shall not exempt the Borrower from any obligations under the Loan Agreement.

2. Priority order for repayment of loaned capital:

For principal, interest, and fees recorded in the Loan Agreement, the Borrower must repay them in equal priority with any other similar loans of the enterprise. If the Borrower can only partially fulfill the due obligations, the priority order for repayment shall be as follows: overdue interest, due interest, lending fee, due principal.

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country.". Assignment

The Borrower may not assign or transfer the debt obligation arising from the loan without the written approval of the Lending Agency.

For state-owned enterprises undergoing ownership restructuring (privatization, merger, dissolution...), the entity issuing the corporate restructuring decision must require the entity receiving the loan debt to sign a confirmation of debt with the Lending Agency and fulfill the repayment obligations according to the signed Loan Agreement.

Chapter V

IMPLEMENTATION

Programs and projects approved and implemented after the effective date of this Regulation must comply with the provisions set forth in this Regulation.

For programs and projects where the loan conditions have been approved but not yet implemented after the effective date of this Regulation, the previously approved loan conditions shall continue to apply.

Loan Agreements, Delegation Contracts for Lending, and Supplementary Loan Agreements signed before the issuance of this Regulation remain valid and enforceable./.