Decree No. 36/2022/NĐ-CP on interest rate support for loans at the Social Policy Bank from sources of loan capital, interest rate subsidies, and management fees to allow the Social Policy Bank to provide loans in accordance with Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the Economic and Social Recovery and Development Program.

DECREE

On interest rate support for loans from the Vietnam Bank for Social Policies,

sources of loan capital, interest rate subsidies, and management fees to enable the Vietnam Bank for Social Policies to provide loans

according to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting the Economic Recovery and Development Program,

The Government issues this Decree on interest rate support for loans from the Vietnam Bank for Social Policies, sources of loan capital, interest rate subsidies, and management fees to enable the Vietnam Bank for Social Policies to provide loans according to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting the Economic Recovery and Development Program.

support the Economic and Social Recovery and Development Program

Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting the Program to Restore and Develop the Economy and Society;

At the proposal of the Minister of Finance;

1. The mechanism for interest rate support for loans from the Vietnam Bank for Social Policies as stipulated in Clause b, Point 1.2, Article 3 of Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies supporting the Economic Recovery and Development Program and Clause d, Point 2, Section II of Resolution No. 11/NQ-CP dated January 30, 2022 of the Government on the Economic Recovery and Development Program and the implementation of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies supporting the Program.

Article 1. Scope of Regulation

This Decree provides for:

2. Sources of loan capital and interest rate subsidies and management fees for the Vietnam Bank for Social Policies to implement preferential lending policies as stipulated in Clause b, Point 1.3, Article 3 of Resolution No. 43/2022/QH15 and Clause c, Point 2, Section II of Resolution No. 11/NQ-CP (hereinafter referred to as preferential lending policies under Resolution No. 43/2022/QH15).

2. Borrowers from the Vietnam Bank for Social Policies (including both organizations and individuals) must have loans that fully meet the conditions for state budget interest rate support as provided in Article 4 of this Decree.

Article 2. Applicability

Article 3. Creditors

Article 3. Principles of Interest Rate Support

3. Other organizations and individuals related thereto.

1. Interest rate support shall be transparent, fair, targeted, and purposeful, avoiding policy exploitation.

2. The state budget shall allocate sufficient and timely funds for interest rate support to enable the Vietnam Bank for Social Policies to provide interest rate support to borrowers. The total maximum source of interest rate support funds is 3 trillion VND.

3. The Vietnam Bank for Social Policies shall implement interest rate support in accordance with regulations, facilitating borrowers.

4. Interest rate support shall not be provided for overdue principal balances or extended debts.

Article 4. Conditions for State Budget Interest Rate Support

Borrowers who receive state budget interest rate support must satisfy all of the following conditions:

1. They must have loans that meet the following conditions:

a) Belonging to social policy credit programs provided by the Vietnam Bank for Social Policies according to: Government Decrees; Prime Minister's Decisions; local government entrustment documents, economic organizations, political-social organizations, associations, clubs, non-governmental organizations, domestic and foreign individuals; agreements, loan rescheduling from ODA and foreign concessional funds; other foreign financial assistance agreements;

b) Having an annual interest rate exceeding 6%;

c) Being disbursed by the Vietnam Bank for Social Policies and having outstanding balances during the period of interest rate support.

2. Borrowers must be eligible borrowers and use borrowed funds for their intended purposes as prescribed.

2. Borrowers must be eligible borrowers and use the borrowed funds for the intended purpose as prescribed.

Article 5. Time for interest rate support, time for supported loans, level of interest rate support, and amount of interest rate support

1. The time for interest rate support is from January 1, 2022 to December 31, 2023 or when the Vietnam Bank for Social Policies announces the end of interest rate support according to point g, Clause 2, Article 10 of this Decree, whichever comes first.

2. The time for supported loans is determined from the disbursement date of the loan until the customer repays the principal in full but must not exceed the time for interest rate support.

3. The level of interest rate support for borrowers is 2% per annum calculated on the outstanding balance of loans disbursed during the period of interest rate support.

4. The actual amount of interest rate support for a loan is determined according to point b, Clause 3, Article 7 of this Decree.

Article 6. Method of interest rate support

1. The State budget implements interest rate support for borrowers through the Vietnam Bank for Social Policies and pays the amount of interest rate support to the Vietnam Bank for Social Policies according to this Decree.

2. Monthly, the Vietnam Bank for Social Policies calculates the amount of interest that is supported and reduces it from the interest payable by the borrower.

Article 7. Procedure for implementing interest rate support from the State budget for the Vietnam Bank for Social Policies annually

1. Preparing and allocating the State budget estimate to implement interest rate support:

a) The preparation of the State budget estimate to implement interest rate support is carried out according to the provisions of the State Budget Law, Investment Law, Resolution No. 43/2022/QH15, this Decree, and related laws;

b) The Vietnam Bank for Social Policies compiles the annual interest rate support plan for 2022 and 2023 and sends it to the Ministry of Planning and Investment and the Ministry of Finance;

c) Based on the compiled plan of the Vietnam Bank for Social Policies at point b of this clause, the Ministry of Planning and Investment takes the lead in reporting to the Government to submit to the Standing Committee of the National Assembly for permission to supplement the State budget investment development expenditure estimate for interest rate support in 2022 and to incorporate and allocate in the State budget estimate for 2023 to be decided by the National Assembly;

d) Based on the resolution of the Standing Committee of the National Assembly to supplement the 2022 budget, the Prime Minister decides to allocate central government funds to supplement the public investment plan for 2022 for the Vietnam Bank for Social Policies. The allocation of the 2023 public investment plan is implemented according to current regulations;

đ) Within the annual public investment plan allocated by the Prime Minister, the Vietnam Bank for Social Policies allocates the interest rate support limit to its branches. During implementation, the Vietnam Bank for Social Policies adjusts the limits between branches if necessary, ensuring that the total interest rate support limit for all branches does not exceed the annual interest rate support plan assigned by the competent authority.

2. Implementing the annual State budget estimate for interest rate support:

a) Before the 10th day of the first month of each quarter, the Vietnam Bank for Social Policies submits to the Ministry of Finance a request for advance payment of the interest rate support provided in the previous quarter according to this Decree, including:

A letter requesting advance payment of the interest rate support, clearly stating the amount of interest rate support provided by the Vietnam Bank for Social Policies to customers in the previous quarter, the amount requested for advance payment equal to 85% of the interest rate support provided by the Vietnam Bank for Social Policies to customers in the previous quarter, and the bank account for receiving the payment;

A report on the implementation of interest rate support in the previous quarter according to the model attached as Appendix I to this Decree.

b) Within 15 working days from the date of receipt of the complete request from the Vietnam Bank for Social Policies, the Ministry of Finance will make advance payments to the Vietnam Bank for Social Policies according to the provisions of point a of this clause in the form of a payment order and notify the Vietnam Bank for Social Policies to coordinate the implementation.

c) The total advance payment to the Vietnam Bank for Social Policies according to the provisions of point b of this clause during the implementation and disbursement of the annual public investment plan shall not exceed the allocated budget estimate for the year. By January 31, 2023, any unused interest rate support budget for 2022 can be transferred to 2023 to continue implementing interest rate support according to the law.

3. Settlement and approval of annual interest rate support settlement:

a) The branch of the Vietnam Bank for Social Policies is responsible for settling the annual interest rate support and submitting the settlement report to the head office of the Vietnam Bank for Social Policies before February 10 of the following year for approval. Loans in the settlement report must meet the eligible criteria and fully satisfy the conditions for interest rate support as stipulated in this Decree.

b) The amount of interest rate support settled is determined as follows:

The actual amount of interest rate support paid for a disbursement is calculated using the formula:

Where: - L is the actual amount of interest rate support paid for a disbursement;

Σ(Di x Ti) is the sum of the products of the outstanding balance and the actual number of days of outstanding balance supported with interest rate for the disbursement;

The actual amount of interest rate support paid for a loan is the total actual amount of interest rate support paid for all disbursements made during the period of interest rate support for that loan;

The total actual amount of interest rate support requested to be paid by the State budget is the total actual amount of interest rate support paid for all loans that fully meet the conditions for State budget interest rate support as stipulated in this Decree.

c) The Social Policy Bank shall examine and approve the final accounts for its Branches and prepare a consolidated report on the actual interest rate support for the year of settlement according to the form attached as Appendix II of this Decree, to be sent to the State Audit Agency for auditing in accordance with Clause 3, Article 7 of Resolution No. 43/2022/QH15 and related legal documents.

d) Before October 1 of the following year from the year of settlement, the Social Policy Bank shall prepare a file requesting a review of the final accounts to be submitted to the Ministry of Finance for review. The file requesting the review of the final accounts for interest rate support submitted to the Ministry of Finance includes: A letter requesting the review of the final accounts for interest rate support; a consolidated report on the final accounts for interest rate support (based on audited figures); a copy of the State Audit Agency's audit result on interest rate support at the Social Policy Bank during the year of settlement.

4. Review and notify the annual final account review of interest rate support

a) Conduct the review of the final accounts for interest rate support

Within ten working days from the date of receipt of the file requesting the review of the final accounts for interest rate support from the Social Policy Bank, the Ministry of Finance shall check the completeness and validity of the file and request additional information if it is not complete in accordance with Point d, Clause 3 of this Article.

After receiving the complete file requesting the review of the final accounts for interest rate support from the Social Policy Bank, the Ministry of Finance shall conduct a review of the consolidated report on the final accounts for interest rate support as follows:

Verify the budgeted expenditure for interest rate support assigned for the year, ensuring that it matches the budget assigned by the competent authority (including the initial budget assigned at the beginning of the year, supplementary and adjusted budgets during the year);

Verify the amount of state budget funds prepaid;

Ensure that the total amount of state budget funds requested by the Social Policy Bank to be paid for interest rate support during the year has been adjusted according to the conclusion of the State Audit Agency;

Verify the amount of state budget funds prepaid to the Social Policy Bank exceeding or falling short of the reviewed amount (if any);

Other contents and observations (if any).

b) Notify the review of the final accounts for interest rate support

Within thirty working days from the date of receipt of the complete file requesting the review of the final accounts for interest rate support from the Social Policy Bank, based on the results of the review of the final accounts for interest rate support stipulated in Point a of this Clause, the Ministry of Finance shall issue a notification of the review of the final accounts for interest rate support to the Social Policy Bank to notify the following figures:

The amount of state budget funds to be paid to the Social Policy Bank for interest rate support during the year based on the audit data of the State Audit Agency, wherein the figure included in the final settlement of the state budget for the fiscal year is the amount of state budget funds paid to the Social Policy Bank from January 1 of the fiscal year to January 31, 2023 for interest rate support in 2022 and to January 31, 2024 for interest rate support in 2023;

The amount of state budget funds still to be paid to the Social Policy Bank, or recovered, or deducted from the payment of the next year. In case the amount prepaid during the year is lower than the notified reviewed amount, the difference will be paid further; in case the amount prepaid during the year is higher than the notified reviewed amount, the difference will be recovered, or deducted from the interest rate support payment of the next year.

5. Handling the recovery of the amount already supported for interest rate

a) During the implementation process, in case it is found that a customer's loan does not meet the conditions for state budget interest rate support as prescribed in this Decree, the Social Policy Bank shall immediately recover the amount of interest rate support provided by the Social Policy Bank to the borrowing customer;

b) In case the state budget has already paid the amount of interest rate support or has settled the interest rate support for the loan specified in Point a of this Clause, the Social Policy Bank shall refund the state budget or report to deduct from the payment of interest rate support of the next year.

Article 8. Sources of funds for lending and interest rate subsidies and management fees

1. Sources of funds for lending

a) The Social Policy Bank is allowed to issue government-guaranteed bonds to provide loans for preferential lending policies as stipulated in sub-item b, Point 1.3, Clause 1, Article 3 of Resolution No. 43/2022/QH15;

b) The total limit for issuing government-guaranteed bonds for providing loans for preferential lending policies under Resolution No. 43/2022/QH15 shall not exceed VND 38.4 trillion and shall not exceed the total outstanding credit balance of preferential lending policies under Resolution No. 43/2022/QH15 at the end of the implementation period of Resolution No. 43/2022/QH15 plus the amount of retained funds calculated based on the total outstanding credit balance mentioned herein. The retention ratio is determined according to the maximum cash reserve ratio and deposits with other financial institutions to ensure payment capacity when determining the amount of interest rate subsidy and management fee differential as prescribed in the financial management regulations of the Social Policy Bank;

c) The source of government-guaranteed bonds as prescribed in this clause shall be consolidated into the total capital of the Social Policy Bank and accounted for, managed, and utilized in accordance with the financial management regulations of the Social Policy Bank;

d) During the period before issuance or insufficient issuance of government-guaranteed bonds, the Social Policy Bank may use legitimate sources of capital from the Bank to implement preferential lending policies under Resolution No. 43/2022/QH15.

2. Interest Rate Subsidies and Management Fees

a) The Social Policy Bank shall receive interest rate subsidies and management fees from the state budget when implementing preferential lending policies under Resolution No. 43/2022/QH15 according to the mechanism for subsidizing interest rate differentials and management fees when lending to poor people and other policy beneficiaries as prescribed in the financial management regulations of the Social Policy Bank;

b) Source of Funds for Interest Rate Subsidies and Management Fees

The source of funds for interest rate subsidies and management fees during the period 2022-2023 to implement preferential lending policies under Resolution No. 43/2022/QH15 is the VND 2 trillion source of funds prescribed in sub-item b, Point 1.2, Clause 1, Article 3 of Resolution No. 43/2022/QH15;

The source of funds for interest rate subsidies and management fees after 2023 for the outstanding balance of preferential lending policies under Resolution No. 43/2022/QH15 shall be allocated from the public investment capital as prescribed by the State Budget Law, Investment Law, and guiding documents (if any);

Article 9. Reporting System

1. Quarterly, annually, and upon completion of the program, the Social Policy Bank shall submit quarterly, annual, and final program reports on the results of interest rate support throughout the system to the Ministry of Finance according to the model attached as Appendix I to this Decree;

2. Deadline, data closing time, and reporting method

a) Reporting deadline

Quarterly report: Not later than 10 days from the end of the quarter;

Annual report: Not later than 60 days from the end of the year;

Final program report: Not later than 60 days from the end of the program;

b) Data closing time for quarterly and annual reports: The start date for collecting data is the first day of the reported quarter or year; the end date for collecting data is the last day of the reported quarter or year;

c) Data closing time for final program report: The start date for collecting data is January 1, 2022; the end date for collecting data is December 31, 2023, or the date announced as the end of interest rate support implementation according to Point g, Clause 2, Article 10 of this Decree, whichever comes first;

d) Reporting methods shall be carried out through one of the following methods:

Direct submission in paper form;

Submission via postal service in paper form;

Submission via email system or specialized information reporting software system;

Other methods as prescribed by law;

Article 10. Implementation Organization

1. Borrower's responsibilities for subsidized loan capital

a) To use borrowed capital for the intended purpose as prescribed;

b) If the borrower does not meet the conditions to receive state budget interest rate subsidies as prescribed in this Decree, they must repay the Social Policy Bank: the entire amount of borrowed capital that does not comply with the target group and/or is not used for the intended purpose (if applicable); the amount of previously received interest rate subsidies for borrowed capital that does not meet the conditions to receive state budget interest rate subsidies;

2. Responsibilities of the Social Policy Bank

a) To compile the demand for funding for interest rate subsidies, interest rate subsidies, and management fees and send it to the Ministry of Planning and Investment and the Ministry of Finance to allocate to the Social Policy Bank as prescribed by the State Budget Law, Investment Law, Resolution No. 43/2022/QH15, and guiding documents (if any);

b) To guide branches of the Social Policy Bank in implementing regular quarterly, annual, and final program reporting on the results of interest rate support; to direct branches of the Social Policy Bank to implement interest rate support and settlement of interest rate support in accordance with this Decree and related laws;

c) To review and settle interest rate support in accordance with this Decree and related laws; to compile and report on the settlement of interest rate support in accordance with this Decree and related laws;

d) To bear full responsibility for the legality, completeness, validity, and accuracy of the application files for audit and settlement and the data in the report requesting state budget interest rate subsidies. To retain all interest rate support files for each loan receiving interest rate support in accordance with the prescribed regulations;

đ) To report on the results of interest rate support in accordance with the reporting system prescribed in Article 9 of this Decree;

e) To provide loans to eligible borrowers; to inspect before, during, and after lending to ensure compliance with interest rate support regulations. If a borrower does not meet the conditions to receive state budget interest rate subsidies, the bank has the responsibility to recover: the entire amount of borrowed capital that does not comply with the target group and/or is not used for the intended purpose (if applicable); the amount of previously received interest rate subsidies for borrowed capital that does not meet the conditions to receive state budget interest rate subsidies.

g) On the basis of the implementation of interest rate support, when the funds allocated for interest rate support to the Social Policy Bank under Resolution No. 43/2022/QH15 remain insufficient to provide support for loans in the following month, the Social Policy Bank will cease implementing interest rate support, publicly announce on its website and headquarters the date of cessation of interest rate support, and simultaneously report to the Prime Minister and the Ministry of Finance regarding the date of cessation of interest rate support;

h) Monitor separately the credit balance of preferential loan policies according to Resolution No. 43/2022/QH15 with the principle that:

For the policy of preferential loans being implemented concurrently to increase the credit balance of preferential loan policies according to Resolution No. 43/2022/QH15 and to increase the credit balance for annual social policy credit programs assigned by the Prime Minister (excluding the plan to increase the credit balance of preferential loan policies according to Resolution No. 43/2022/QH15), the credit balance of preferential loan policies according to Resolution No. 43/2022/QH15 will be calculated first until the maximum credit balance of the loan program is reached;

For the student loan program to cover educational expenses according to Decision No. 157/2007/QĐ-TTg dated September 27, 2007 of the Prime Minister on credit for students and subsequent amendments and supplements, the credit balance will only be calculated according to Resolution No. 43/2022/QH15 after exhausting state budget funds and Vietnam National Bank loans allocated for this program;

i) Calculate, determine, and be responsible for the amount of interest rate subsidy and management fees when implementing preferential loan policies according to Resolution No. 43/2022/QH15;

k) Report to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Government and the Prime Minister, and submit to the National Assembly on the issuance of government-guaranteed bonds and preferential loans according to Resolution No. 43/2022/QH15 in April 2024;

3. Responsibilities of the Ministry of Finance

a) Based on the state budget allocation to provide interest rate support funds to the Social Policy Bank as stipulated in this Decree;

b) Conduct final settlement review of interest rate support and issue a notification of final settlement review of interest rate support to the Social Policy Bank as stipulated in this Decree;

4. Responsibilities of the Ministry of Planning and Investment: Lead and coordinate with the Ministry of Finance to present to the competent authority for balancing and allocating funds for interest rate support, interest rate subsidy, and management fees for the Social Policy Bank in accordance with the State Budget Law, Public Investment Law, Resolution No. 43/2022/QH15, and guiding documents (if any);

5. Responsibilities of local authorities at all levels

a) Closely cooperate with the Social Policy Bank in implementing interest rate support as stipulated in this Decree;

b) Direct the People's Councils' Management Board of the Social Policy Bank at all levels to regularly inspect and supervise the implementation of this Decree;

6. Request the Central Committee of the Vietnam Fatherland Front and political-social organizations to participate in disseminating, coordinating implementation, and supervising the implementation of this Decree;

Article 11. Implementation Provisions

1. This Decree takes effect from the date of issuance.

2. Loans that fully meet the conditions specified in Article 4 of this Decree shall be disbursed by the Social Policy Bank during the period from January 1, 2022, to before the effective date of this Decree and have not completed the repayment of interest-subsidized loans as stipulated in this Decree;

3. The Ministry of Finance, the Ministry of Planning and Investment, the Social Policy Bank, and related organizations and individuals are responsible for implementing this Decree./.

Appendix I
QUARTERLY/YEARLY REPORT ON THE IMPLEMENTATION OF INTEREST RATE SUPPORT ACCORDING TO RESOLUTION NO. 43/2022/QH15
SOCIAL POLICY BANK

SITUATION OF INTEREST RATE SUPPORT IMPLEMENTATION

REPORT
ACCORDING TO RESOLUTION NO. 43/2022/QH15
Quarter/Year/End of Program...
I. SITUATION OF IMPLEMENTATION DURING THE REPORTING PERIOD

1. Amount of state budget payment for excess/shortfall interest rate support at the end of the previous period: ... dong.

2. Detailed situation of interest rate support implementation during the reporting period by branch: ...

3. Amount requested for advance state budget payment during the reporting period: ... dong.

4. Amount of state budget payment for excess/shortfall interest rate support during the reporting period: ... dong.

I. ACCUMULATED SITUATION OF INTEREST RATE SUPPORT IMPLEMENTATION

1. Accumulated amount of advance state budget payment received: ... dong.

2. Accumulated amount of interest rate support provided: ... dong.

3. Accumulated amount of interest rate support recovered: ... dong.

4. Accumulated amount of state budget payment for excess/shortfall interest rate support: ... dong.

..., year..., person..., PREPARER OF THE CONTROL SHEET (Signature, full name) (Signature, full name) (Signature, stamp)

SUMMARY OF FINAL SETTLEMENT OF INTEREST RATE SUPPORT

SITUATION OF INTEREST RATE SUPPORT IMPLEMENTATION

REPORT
1. Amount of state budget payment for excess/shortfall interest rate support carried over from the previous year: ... dong (if applicable).
Quarter/Year/End of Program...

2. Allocated budget for interest rate support in the year: ... dong.

3. Amount of advance state budget payment received during the year (including the amount received in January of the following year): ... dong.

4. Amount of state budget payment for interest rate support during the year: ... dong; detailed by branch as follows:

5. Amount of state budget payment for excess/shortfall interest rate support: ... dong.

6. Issues discovered through the process of compiling the final settlement report, inspection, audit, and supervision (if any).

7. Other contents and comments (if any).

..., day..., month..., year..., HEAD OF THE ORGANIZATION/UNIT (Signature, stamp)

PREPARER OF THE CONTROL SHEET (Signature, full name) (Signature, full name)

THE PREPARER OF THE CONTROL CHECKLIST (Signature, Full Name) (Signature, Full Name)