Circular No. 43/2000/TT-BTC guides the compensation for interest rate differential for state investment credit loans to the Development Support Fund.

 

CIRCULAR

||| GUIDELINES FOR PROVIDING INTEREST RATE DIFFERENTIAL SUBSIDIES FOR STATE INVESTMENT LOANS TO DEVELOPMENT SUPPORT FUNDS

Pursuant to Decree No. 43/1999/NĐ-CP dated June 29, 1999 of the Government on state investment credit for development;
Pursuant to Decree No. 50/1999/NĐ-CP dated July 8, 1999 of the Government on the organization and operation of development support funds;
Pursuant to the Financial Management Regulations of Development Support Funds issued together with Decision No. 232/1999/QĐ-TTg dated December 17, 1999 of the Prime Minister;
In order for the Development Support Fund to ensure repayment of capital during the implementation of state investment credit plans, the Ministry of Finance guides the provision of interest rate differential subsidies (hereinafter referred to as subsidies) for the Development Support Fund as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. The scope of subsidies for the Development Support Fund includes:

Interest rate differentials and management fees for projects financed from domestic sources.

2. The level of subsidies shall be determined based on the difference between the average interest rates of domestic funding sources (including non-interest-bearing sources) and the designated loan interest rates, along with the portion of management fees received.

The Development Support Fund shall only mobilize high-interest sources when all non-interest-bearing sources or low-interest sources have been fully utilized.

3. Subsidies shall be provided on a quarterly provisional basis according to the plan and adjusted based on the actual performance of previous quarters; the official annual subsidy amount will be determined after the end of the fiscal year.

The source of subsidies for the Development Support Fund shall be allocated within the State Budget estimate annually.

4. The Development Support Fund is responsible for developing plans, determining subsidy needs, and reporting to the Ministry of Finance in accordance with this Circular.

II. SPECIFIC PROVISIONS

1. Developing subsidy plans for interest rate differentials.

1.1. Procedures for developing plans.

Based on the balance and mobilization plans for various funding sources; based on the policy on state investment credit, the Development Support Fund develops the annual subsidy plan and submits it to the Ministry of Finance and the Ministry of Planning and Investment by the end of September each year (according to Model 01-KH-CB attached).

On the basis of the subsidy plan of the Development Support Fund; based on the general policy on development investment and state investment credit; based on budget balancing capacity, the Ministry of Finance determines the subsidy plan and incorporates it into the annual State Budget estimate to be submitted to the Prime Minister.

Based on the annual subsidy plan allocated in the State Budget expenditure plan; based on the balance and mobilization plans for various funding sources in the quarter, the Development Support Fund develops the quarterly subsidy plan and submits it to the Ministry of Finance as the basis for implementing subsidies.

1.2. Method for calculating subsidy plans.

                                          (1)                        (2)                           (3)                     (4)

(1) The average loan balance according to the annual plan refers to the loan balance for projects using domestic funds and is calculated based on the loan plan, the debt collection plan for the planning year, and the outstanding loan balance carried over from previous years. It does not include the loan balance for:

Projects entrusted to the Development Support Fund by organizations and individuals.

Projects exempted from debt repayment by the Government.

(2) The average interest rate of funding sources is calculated using the weighted average method between the interest rates of each funding source and their respective balances, including non-interest-bearing sources (excluding foreign loans and foreign aid entrusted by the Government to the Development Support Fund for relending domestically).

(3) The average interest rate for project loans is calculated using the weighted average method between the planned loan balance for the entire year and the interest rates set for each project.

(4) The management fee ratio is applied according to the Prime Minister's Decision.

In the first five years of establishment, the management fee is determined at 0.2% per month on the actual loan balance of projects using domestic credit funds.

2. Principles for implementing subsidies.

Subsidies for the Development Support Fund shall be implemented on a provisional quarterly basis based on the actual situation of fund mobilization and balancing, and the progress of project loans in the quarter. At the end of the fiscal year, based on the final accounts approved by the Management Board of the Development Support Fund, the Ministry of Finance will determine the official annual subsidy amount and make adjustments.

Provisional subsidies for each quarter shall be implemented according to the following principles:

Quarter I: Provide 75% of the Quarter I plan.

Quarter II: Provide 75% of the Quarter II plan ± adjustment for the first three months.

Quarter III: Provide 75% of the Quarter III plan ± adjustment for the first six months.

Quarter IV: Provide 75% of the Quarter IV plan ± adjustment for the first nine months.

3. Method for calculating subsidies.

                                         (1)                           (2)                           (3)                       (4)

(1) The average loan balance of projects is the total loan balance of projects calculated using the monthly average method. It does not include the loan balance for:

Projects entrusted to the Development Support Fund by organizations and individuals.

Projects exempted from debt repayment by the Government.

(2) The actual average interest rate of funding sources is calculated as follows:

Total actual funding sources refer to the total balance of all funding sources, excluding foreign loans and foreign aid entrusted by the Government to the Development Support Fund for relending domestically and funds entrusted from organizations and individuals.

(3) The average interest rate for project loans is calculated as follows:

(4) The management fee ratio is the percentage of fees that the Development Support Fund receives based on the subsidy period.

In the first five years of establishment, the management fee is determined at 0.2% per month on the actual loan balance of projects using domestic credit funds.

4. Procedures for providing interest rate differential subsidies.

4.1. Quarterly provisional subsidy.

On the 15th day of the first month of each quarter, based on the aggregated data from the branches of the Fund, the Development Support Fund prepares the quarterly subsidy plan (according to Model 03-TH-CB attached) and sends it to the Ministry of Finance along with an explanation.

BASED ON THE REIMBURSEMENT PLAN ARRANGED IN THE STATE BUDGET EXPENDITURE PLAN; BASED ON THE QUARTERLY REIMBURSEMENT PLAN OF THE DEVELOPMENT SUPPORT FUND, ON THE 25TH DAY OF THE FIRST MONTH OF EACH QUARTER, THE MINISTRY OF FINANCE TEMPORARILY REIMBURSES THE DEVELOPMENT SUPPORT FUND IN ACCORDANCE WITH POINT 2 - SECTION II OF THIS CIRCULAR.

ADJUSTMENT OF QUARTERLY REIMBURSEMENTS

ON THE 15TH DAY OF THE FIRST MONTH OF THE FOLLOWING QUARTER, BASED ON THE COMPILED DATA FROM BRANCHES, THE DEVELOPMENT SUPPORT FUND CALCULATES THE ACTUAL AMOUNT TO BE REIMBURSED FOR THE PREVIOUS QUARTER, THE DIFFERENCE BETWEEN THE AMOUNT ALREADY TEMPORARILY REIMBURSED IN THE PREVIOUS QUARTER (IN ACCORDANCE WITH ATTACHMENT FORM NO. 04-TH-CB), AND ATTACHES AN EXPLANATION TO SEND TO THE MINISTRY OF FINANCE.

BASED ON THE PLAN ARRANGED IN THE STATE BUDGET EXPENDITURE PROJECTIONS, BASED ON THE REIMBURSEMENT REQUEST OF THE DEVELOPMENT SUPPORT FUND, THE MINISTRY OF FINANCE DETERMINES THE ACTUAL AMOUNT TO BE REIMBURSED FOR THE PREVIOUS QUARTER.

a. If the actual amount to be subsidized in the previous quarter is higher than the temporarily subsidized amount, the Ministry of Finance shall supplement the remaining amount together with the temporarily subsidized amount for the next quarter.

b. If the actual amount to be subsidized in the previous quarter is lower than the temporarily subsidized amount, the Ministry of Finance shall deduct the excess amount from the temporarily subsidized amount for the next quarter.

4.2. Annual adjustment of subsidy amount based on final settlement.

AT THE END OF THE FISCAL YEAR, BASED ON THE OFFICIALLY APPROVED FINAL ACCOUNTS REVIEWED BY THE MANAGEMENT BOARD, THE DEVELOPMENT SUPPORT FUND RECALCULATES THE TOTAL AMOUNT TO BE REIMBURSED FOR THE YEAR (IN ACCORDANCE WITH ATTACHMENT FORM NO. 02-TH-CB) AND ATTACHES AN EXPLANATION TO SEND TO THE MINISTRY OF FINANCE.

BASED ON THE ANNUAL REIMBURSEMENT PLAN ARRANGED IN THE STATE BUDGET; BASED ON THE FINAL ACCOUNTS DATA AND THE ACTUAL OPERATING SITUATION OF THE DEVELOPMENT SUPPORT FUND DURING THE YEAR, THE MINISTRY OF FINANCE REASSESSES THE OFFICIAL TOTAL AMOUNT TO BE REIMBURSED FOR THE YEAR FOR THE DEVELOPMENT SUPPORT FUND AND IMPLEMENTS THE ADJUSTMENT.

The adjustment of the subsidy amount based on final settlement is carried out as follows:

IF THE OFFICIAL ANNUAL REIMBURSEMENT AMOUNT IS HIGHER THAN THE TEMPORARY REIMBURSEMENT AMOUNT DURING THE YEAR (BY QUARTERS), THE MINISTRY OF FINANCE WILL SUPPLEMENT THE REMAINING AMOUNT WITHIN THE SCOPE OF THE ANNOUNCED PLAN. ANY SURPLUS DIFFERENCE BETWEEN THE OFFICIAL ANNUAL REIMBURSEMENT AMOUNT AND THE ANNOUNCED PLAN (IF ANY) WILL BE ARRANGED IN THE NEXT YEAR'S REIMBURSEMENT PLAN.

IF THE OFFICIAL ANNUAL REIMBURSEMENT AMOUNT IS LOWER THAN THE TEMPORARY REIMBURSEMENT AMOUNT DURING THE YEAR (BY QUARTERS), THE SURPLUS DIFFERENCE WILL BE HELD OVER FOR REIMBURSEMENT IN THE FIRST QUARTER OF THE FOLLOWING YEAR (IF THE FOLLOWING YEAR STILL INCURS REIMBURSEMENT); OR MUST BE RETURNED TO THE STATE BUDGET (IF THE FOLLOWING YEAR DOES NOT INCUR REIMBURSEMENT).

III. IMPLEMENTATION

THIS CIRCULAR TAKES EFFECT FROM JANUARY 1, 2000. DURING THE IMPLEMENTATION PERIOD, IF THERE ARE ANY OBSTACLES, THE DEVELOPMENT SUPPORT FUND IS URGED TO TIMELY REFLECT THEM TO THE MINISTRY OF FINANCE FOR CONSIDERATION AND RESOLUTION./.