Decision No. 497/QD-TTg on interest rate support for loans to purchase machinery, equipment, materials for agricultural production, and construction materials for housing in rural areas

 

Pursuant to …;

INTEREST RATE SUPPORT FOR LOANS TO PURCHASE MACHINERY AND EQUIPMENT, MATERIALS FOR AGRICULTURAL PRODUCTION, AND HOUSING CONSTRUCTION MATERIALS IN RURAL AREAS

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
WHEREAS, Resolution No. 12/NQ-CP dated April 6, 2009 of the Government on building mechanisms and policies to support rural areas' entities in purchasing machinery, equipment, materials for agricultural production;
CONSIDERING the proposal of the Ministers of Industry and Trade, Agriculture and Rural Development, Finance, and the Governor of the State Bank of Vietnam,

Pursuant to …;

Article 1. The State shall provide interest rate support for short-term and medium-term loans in Vietnamese dong made by commercial banks to organizations and individuals for purchasing machinery, equipment, means, and materials for agricultural production and construction materials for housing in rural areas.

Article 2. Scope of Application

1. State-owned commercial banks, joint-stock commercial banks, joint venture banks, foreign bank branches operating in Vietnam, wholly foreign-owned banks, finance companies, and the Central People's Credit Fund (collectively referred to as commercial banks).

2. Loans in Vietnamese dong made by organizations and individuals for purchasing machinery, equipment, means, and materials for agricultural production and construction materials for housing in rural areas, excluding loans that have already received interest rate support under Decision No. 131/QĐ-TTg dated January 23, 2009 and Decision No. 443/QĐ-TTg dated April 4, 2009 of the Prime Minister.

Article 3. Domestic products eligible for interest rate support:

1. Machinery, equipment, mechanical devices, and means for agricultural production and processing:

a. Internal combustion engines: small engines under 30 CV, water engines under 80 CV.

b. Combined harvesters.

c. Tractors, plows, harrows, land preparation machines.

d. Rice harvesters, rice threshers, agricultural product dryers, rice huskers, water pumps, generators, tea rolling machines, corn degerminators, seeders.

đ. Oxygen aerators for aquaculture, boats with attached engines.

e. Grass cutters, hay balers, feed grinding, mixing, pelletizing, pressing machines, milk extractors, poultry incubators.

g. Light trucks.

h. Desktop computers.

2. Materials for agricultural production:

a. Chemical fertilizers.

b. Plant protection chemicals.

3. Main types of construction materials for housing in rural areas.

Article 4. Principles for lending, interest rate support, and conditions for borrowing

1. Commercial banks shall lend according to normal credit mechanisms; implement interest rate support as prescribed in this Decision and in accordance with guidelines from the State Bank of Vietnam; deduct the amount of interest supported from the interest payable to borrowers at the time of loan repayment; may not refuse interest rate support if the loan falls within the scope of supported interest rates.

2. Conditions for borrowing by organizations and individuals:

a. Belonging to the categories specified in Article 1 and the goods listed in Article 3 of this Decision.

b. Having a legal residence address confirmed by the People's Committee of the commune, ward, or town as being directly engaged in production (not for resale).

c. Having a loan agreement with a commercial bank as stipulated.

Article 5. Maximum loan amount, interest rate support level, and duration of interest rate support

1. Maximum loan amount and interest rate support level:

a. For machinery, equipment, mechanical devices, means for agricultural production and processing, and desktop computers: maximum loan amount equal to 100% of the value of the goods (for desktop computers, the maximum loan amount does not exceed five million dong per unit) and 100% interest rate support.

b. For agricultural materials: maximum loan amount equal to 100% of the value of the goods but not exceeding seven million dong per hectare and 4% interest rate support.

c. For various construction materials for housing: maximum loan amount equal to 100% of the value of the goods but not exceeding fifty million dong and 4% interest rate support.

2. Duration of interest rate support:

Loans under credit contracts signed and disbursed between May 1, 2009 and December 31, 2009 by organizations and individuals for:

a. Machinery, equipment, mechanical devices, means for agricultural production and processing, and desktop computers: maximum loan term for interest rate support is twenty-four months.

b. Agricultural materials and various construction materials for housing: maximum loan term for interest rate support is twelve months.

Article 6. Repayment of interest rate support funds to banks

1. The State Bank of Vietnam shall repay the interest rate support funds to commercial banks on a monthly basis based on reports and requests from commercial banks.

2. The funding for support as provided in this Decision shall be sourced from the government's interest rate support fund.

Article 7. Conditions for goods to be eligible for interest rate support policies under this Decision.

1. Products produced domestically.

2. Products must be registered, listed with selling prices, and have product labels in accordance with current laws.

Article 8. Implementation

1. The State Bank of Vietnam shall take the lead and coordinate with the Ministry of Finance, the Ministry of Industry and Trade, and the Ministry of Agriculture and Rural Development to guide (ensuring simple, convenient procedures that are suitable for the operational conditions of organizations and individuals in rural areas), inspect, supervise, and regularly report to the Prime Minister on the implementation of this Decision.

2. The Ministry of Industry and Trade shall take the lead and coordinate with relevant ministries, sectors, and localities to organize inspections and supervision to ensure that goods are supplied adequately, meet quality standards, and comply with the provisions set out in Article 7 of this Decision.

3. Provincial People's Committees and Municipal People's Committees under the Central Government:

a. Directing the authorities at the commune, ward, and town levels to confirm the borrowers eligible for loans under this Decision;

b. Based on the local budget capacity, proactively support the purchase of machinery, equipment, means of transportation, materials for agricultural production, and construction materials for rural housing outside the support measures stipulated in this Decision.

4. The Ministry of Information and Communications shall direct mass media agencies to publicize and disseminate openly the policy, support measures, types of goods, and eligible recipients for interest rate support so that the public can access state-subsidized loan funds as provided in this Decision.

5. Commercial banks shall implement interest rate support in accordance with this Decision and the guidance of the State Bank of Vietnam.

6. Organizations and individuals:

a. Shall follow the loan procedures as directed by commercial banks.

b. Shall bear legal responsibility for the use of borrowed funds, ensuring they are used for their intended purpose, and repaying the principal and interest in full and on time as prescribed.

Article 9. This Decision takes effect from the date of issuance.

Article 10. The Governor of the State Bank of Vietnam, Ministers, Heads of ministerial-level agencies equivalent to ministries, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government, Chairpersons of boards of directors, and General Directors of commercial banks are responsible for implementing this Decision.