Decision No. 52/1998/QĐ-TTg On Implementing the Investment Credit Plan for 1998

Pursuant to …;

On implementing the investment credit plan for 1998

PRIME MINISTER

Pursuant to the Law on the Organization of the Government dated September 30, 1992;

To implement the investment credit plan for 1998 to meet the capital requirements of various sectors and localities;

Upon consideration of the proposals of the Minister of Planning and Investment, the Minister of Finance, and the Governor of the State Bank of Vietnam,

DECISION:

Article 1. Assign the task of managing and mobilizing funds for investment credit loans according to the State's plan for 1998 to the lending entities specified in the appendix attached hereto.

Article 2. The objects of the 1998 investment credit plan:

Projects that have been partially funded or have signed credit loan contracts in 1997, recorded in the 1998 loan plan, and must allocate sufficient capital for the project to ensure construction progress.

New investment projects are prioritized in the following sectors: Electricity; machinery; export goods production; distant sea fishing; processing of agricultural, forestry, and marine products; long-term industrial crops, raw material forests, and transportation infrastructure, new industrial zones, urban areas with fees and repayment capacity; priority given to investment projects in provinces, mountainous regions, remote areas. For large-scale investment projects (projects in groups A and B) established under Decision 91, the enterprises themselves shall raise the investment capital, and state investment credit capital will only provide support. The Ministry of Planning and Investment will stipulate the self-investment mechanism and support loans, while the Ministry of Finance will guide enterprises on issuing construction bonds for investment projects.

State investment credit capital according to the 1998 State plan shall not be used for joint venture capital contributions with foreign partners. It shall not be used to repay medium and long-term debts of financial institutions.

Article 3. The interest rate for loans in Vietnamese dong is 0.81% per month, and for foreign currency loans, it is 8.5% per year. The loan term includes both grace periods (construction period) and repayment periods, which are determined in accordance with the project's capital recovery period and the borrower's debt repayment capacity but shall not exceed ten years, except in special cases requiring approval from the Prime Minister.

Article 4. Projects borrowing investment credit capital according to the State plan may use assets formed with borrowed capital to secure the loan. During the period when the debt has not been fully repaid, enterprises are not allowed to transfer, sell, or mortgage assets financed by State investment credit capital...

Article 5. Investment projects borrowing capital must complete all investment procedures as prescribed in Decrees No. 42/CP and 92/CP of the Government. Investment projects borrowing capital belong to which economic organization, that organization must bear the cost of preparing for investment, and upon completion of the investment project, the total investment capital will be included in the project's total capital.

The agency approving the investment project is responsible for the effectiveness of the project.

The lending agency is responsible for supervising the use of borrowed capital.

The project sponsor is responsible for managing the use of borrowed capital and the implementation progress of the investment project; organizing production and business operations and repaying debt according to commitments.

Article 6. The Ministry of Planning and Investment is responsible for allocating loan plans for each project in group A, the list of projects in group B, and the total amount of capital for projects in groups B and C. Ministries, provincial people's committees, centrally-affiliated cities, and enterprises established under Decision 91 must allocate capital for each project in groups B and C and register with the lending entity. Adjustments to the loan plan can only be made once in the third quarter of 1998.

Article 7. This Decision takes effect from the date of signature. The Ministry of Planning and Investment, the Ministry of Finance, and the State Bank of Vietnam shall guide its implementation according to their respective functions./.