Decision No. 443/QD-TTg On providing interest rate support to organizations and individuals borrowing medium and long-term bank loans for new investment to develop production and business operations

Pursuant to …;

Regarding the provision of interest rate support for organizations and individuals borrowing medium and long-term bank loans to implement new investment projects for production and business development

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PRIME MINISTER

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

Pursuant to the Law on the State Bank of Vietnam dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam dated June 17, 2003;

Pursuant to the Law on Credit Institutions dated December 12, 1997, and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions dated June 15, 2004;

Pursuant to Resolution No. 30/2008/NQ-CP dated December 11, 2008 of the Government on urgent measures to prevent economic decline, maintain economic growth, and ensure social welfare;

Considering the proposal of the Governor of the State Bank of Vietnam and the Minister of Finance,

DECISION:

Article 1. The State shall provide interest rate support for medium and long-term bank loans denominated in Vietnamese Dong made to organizations and individuals implementing new investment projects for production and business development, and infrastructure construction.

Article 2. Scope of Application

1. Commercial banks shall provide interest rate support in accordance with Clause 1, Article 2 of Decision No. 131/QD-TTg dated January 23, 2009 on providing interest rate support for organizations and individuals borrowing from banks for production and business activities (hereinafter referred to as borrowers), and finance companies shall provide interest rate support in accordance with Clause 1, Article 1 of Decision No. 333/QD-TTg dated March 10, 2009 amending and supplementing certain provisions of Decision No. 131/QD-TTg. The Vietnam Development Bank shall provide interest rate support for preferential lending targets at the interest rate level specified in this Decision.

2. Medium and long-term bank loans denominated in Vietnamese Dong (under credit contracts signed before and after April 1, 2009, and actually disbursed from April 1, 2009, for organizations and individuals implementing new investment projects for production and business development, and infrastructure construction) shall be implemented in accordance with the regulations of the State Bank of Vietnam on statistical reporting systems for various economic sectors and fields.

Article 3. Principles, duration, amount of loan, and level of interest rate support

1. The principle of interest rate support is that commercial banks, the Vietnam Development Bank, and finance companies shall lend medium and long-term capital needs for implementing new investment projects for production and business development, and infrastructure construction under normal lending mechanisms and provide interest rate support strictly in accordance with the regulations of the Prime Minister and the guidance of the State Bank of Vietnam.

2. The maximum term for interest rate support is 24 months. Interest rate support shall be implemented from April 1, 2009, to December 31, 2011. The Governor of the State Bank of Vietnam shall provide specific guidance.

3. The level of interest rate support for loans is 4% per annum, calculated based on the actual loan amount and term as stipulated in Clause 2 of this Article; when collecting loan interest, commercial banks, the Vietnam Development Bank, and finance companies shall deduct the supported interest amount from the borrower's loan interest payment.

Article 4. Implementation

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

2. The State Bank of Vietnam shall take the lead and coordinate with the Ministry of Finance to guide and supervise the strict implementation of this Decision.

3. Responsibilities of commercial banks, the Vietnam Development Bank, finance companies, and borrowers.

a) For commercial banks, the Vietnam Development Bank, and finance companies:

- Provide interest rate support to borrowers in accordance with the regulations of the Prime Minister and the guidance of the State Bank of Vietnam.

- Shall not refuse to provide interest rate support if the loan falls within the scope of supported loans; report periodically to the State Bank of Vietnam for inspection and supervision of interest rate support implementation.

- Guide borrowers to ensure convenient, safe, and appropriate loan usage.

- Implement reporting systems as prescribed by the Governor of the State Bank of Vietnam.

b) For borrowers eligible for interest rate support:

- Utilize borrowed funds for the purposes specified in the credit contract, record loan interest payments and supported interest amounts in accordance with the law.

- Comply with the procedures and reporting systems of commercial banks, the Vietnam Development Bank, and finance companies.

4. The Governor of the State Bank of Vietnam, Ministers, Heads of Ministries equivalent to ministries, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally-administered cities, Chairpersons of Boards of Directors, General Directors, Directors of commercial banks, the Vietnam Development Bank, finance companies, and borrowers are responsible for implementing this Decision./.