Decision No. 44/2008/QD-BTC stipulates the interest rates for state investment credit and export credit, along with the level of interest rate differential for post-investment support. The interest rates apply to specific projects with difficult socio-economic conditions.
Scope of application
Banks and financial organizations, investors of projects borrowing state investment credit and export credit.
Key points
- Borrowing investment credit in Vietnamese dong shall be subject to an interest rate of 12.0% per annum (11.4% per annum for specific projects), and foreign currency at 7.8% per annum (7.2% per annum for specific projects).
- Borrowing export credit in Vietnamese dong shall be subject to an interest rate of 14.4% per annum, and freely convertible foreign currency at 7.8% per annum.
- The level of interest rate differential for post-investment support for projects borrowing in Vietnamese dong is 3.9% per annum, and in foreign currency is 0.96% per annum.
- Contracts signed before this Decision takes effect: not yet disbursed shall be implemented according to the new interest rate; partially disbursed shall continue to be implemented according to the old interest rate.
- This Decision shall take effect fifteen days from the date of publication in the Official Gazette and revoke previous decisions.
🌐 Social impact of this document
- Positive impact: Reduces the financial burden for project investors borrowing investment credit, especially those with specific projects in difficult socio-economic conditions.
- Negative impact: May increase borrowing costs for some projects not eligible for preferential interest rates.
❓ Frequently asked questions
What is the interest rate for state investment credit?
The interest rate for borrowing investment credit in Vietnamese dong is 12.0% per annum (11.4% per annum for specific projects), and in freely convertible foreign currency is 7.8% per annum (7.2% per annum for specific projects).
What is the interest rate for state export credit?
The interest rate for borrowing export credit in Vietnamese dong is 14.4% per annum, and in freely convertible foreign currency is 7.8% per annum.
What is the level of interest rate differential for post-investment support?
The level of interest rate differential for post-investment support for projects borrowing in Vietnamese dong is 3.9% per annum, and in foreign currency is 0.96% per annum.
How will contracts signed before this Decision takes effect be applied?
In cases where disbursement has not been made before this Decision takes effect: it shall be implemented according to the interest rate specified in this Decision. In cases where partial disbursement has been made before this Decision takes effect: it shall continue to be implemented according to the interest rate stated in the signed credit contract.
When does this Decision take effect?
This Decision shall take effect fifteen days from the date of publication in the Official Gazette and revoke previous decisions.
Full text
Pursuant to …;
Regarding the announcement of interest rates for state investment credit and export credit and
the differential interest rate calculated to support after investment
_____________________________
THE MINISTER OF FINANCE
Pursuant to Decree No. 77/2003/ND-CP dated July 1, 2003 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Pursuant to Decree No. 151/2006/ND-CP dated December 20, 2006 of the Government on state investment credit and export credit;
Pursuant to Circular No. 69/2007/TT-BTC dated June 25, 2007 of the Ministry of Finance guiding certain provisions of Decree No. 151/2006/ND-CP dated December 20, 2006 of the Government on state investment credit and export credit;
At the proposal of the Director of the Department of Banking and Financial Institutions' Finance;
DECISION:
Article 1. Interest rate for state investment credit.
1. The interest rate for state investment credit in Vietnamese dong is 12.0%/year, and in foreign currency converted is 7.8%/year.
2. For projects constructing economic and social infrastructure; agricultural development and rural development projects; investment projects in areas with difficult socio-economic conditions, particularly difficult conditions; projects in areas where the Khmer ethnic group resides concentratedly, villages under Program 135, and border villages under Program 120, coastal villages, the interest rate for state investment credit in Vietnamese dong is 11.4%/year, and in freely convertible foreign currency is 7.2%/year.
Article 2. The interest rate for state export credit in Vietnamese dong is 14.4%/year, and in freely convertible foreign currency is 7.8%/year.
Article 3. The differential interest rate calculated to support after investment for projects borrowing in Vietnamese dong is 3.9%/year, and for projects borrowing in foreign currency is 0.96%/year.
Article 4. Loan contracts for investment credit and export credit signed before this Decision takes effect:
1. In cases where disbursement of loan funds has not been carried out before this Decision takes effect: implement according to the interest rate stipulated in this Decision.
2. In cases where part of the loan funds has already been disbursed before this Decision takes effect: continue to implement according to the interest rate stated in the signed credit contract.
Article 5. This Decision shall take effect 15 days from the date of publication in the Official Gazette and revoke Decision No. 75/2007/QD-BTC dated August 30, 2007 and Decision No. 06/2008/QD-BTC dated January 29, 2008 of the Minister of Finance on the interest rate for state investment credit and export credit and the differential interest rate calculated to support after investment.
The Chairman of the Management Board, General Director of the Vietnam Development Bank, and the project sponsors of state investment credit and export credit projects are responsible for implementing this Decision./.
DEPUTY MINISTER
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