CIRCULAR

ON AMENDMENT, SUPPLEMENT OF SEVERAL ARTICLES OF THE CIRCULAR NO. 05/2009/TT-NHNN DATED 07 APRIL 2009 OF THE STATE BANK OF VIETNAM, PROVIDING IN DETAILS FOR THE IMPLEMENTATION OF GIVING INTEREST RATE SUPPORT TO ORGANIZATIONS, INDIVIDUALS THAT BORROW MEDIUM, LONG TERM LOANS FROM BANKS TO MAKE NEW INVESTMENTS FOR PRODUCTION AND BUSINESS DEVELOPMENT

Pursuant to the Resolution No. 30/2008/NQ-CP dated 11 December 2008 of the Government on urgent solutions for preventing economic decline, maintaining economic growth, ensuring social security;
Pursuant to the Decision No. 443/QD-TTg dated 4 April 2009 of the Prime Minister on giving interest rate support to organizations, individuals that borrow medium, long term loans from banks to make new investments for production and business development;
The State Bank of Vietnam hereby amends, supplements several articles of the Circular No. 05/2009/TT-NHNN dated 7 April 2009 providing in details for the implementation of giving interest rate support to organizations, individuals that borrow medium, long term loans from banks to make new investments for production and business development as follows:

Article 1. To amend, supplement Article 2, 3, 4 of the Circular No. 05/2009/TT-NHNN as follows:

1. To amend, supplement Article 2 as follows:

a. Point a, paragraph 3 shall be amended, supplemented as follows:

“a. Loans of commercial banks, finance companies which are listed in accordance with provisions of the Regime on statistic reporting applicable to units of the State Bank of Vietnam and credit institutions, issued in conjunction with the Decision No. 477/2004/QD-NHNN dated 28 April 2004 of the Governor of the State Bank and the Decision No. 143TCTK/PPCD dated 22 December 1993, issued by the Director of the General Statistic Office on the issuance of the system of tier II, tier III and tier IV economic industries and the list of national economic industries, including:

- Agriculture and forestry;

...

...

...

- Mining industry;

- Processing industry;

- Electricity, gas and water production and distribution industry;

- Construction industry; except for construction works: Works of construction of offices (buildings) for lease, the works of construction, repair of houses for sale and lease; works of construction to serve business-production activity belonging to economic industries, sectors which are not entitled to interest rate support;

- Commercial industry, repair of motor vehicle, motor, motorbike, belongings and household utensils;

- Transportation, storehouse and communications;

- Scientific and technological activities.

- Loans for satisfying demand for current capital of economic industries, sectors, of which business-production cycle is over 12 months, which are entitled to interest rate support in accordance with provisions in this point.”

b. To supplement paragraph 4 as follows:

...

...

...

- Loans in foreign currency

- Loans in Vietnamese Dong for direct payment of taxes, fees and charges of all kinds to the State Budget (State Treasury);

- Loans in Vietnamese Dong for purchasing foreign currency to make payment to foreign countries for the import of consumer commodities or to make payment to domestic suppliers for the purchase of consumer commodities, imported from foreign countries, as materials, raw materials and assets for performing project of production-business investment and development, and such imported consumer commodities belong to the List of consumer goods stipulated in the Decision No. 07/2007/QD-BTM dated 28 February 2007 of Ministry of Trade, the Decision No. 10/2008/QD-BCT dated 16 May 2008 of Ministry of Industry and Trade and the Decision No. 27/2008/QD-BCT dated 11 August 2008 of Ministry of Industry and Trade;

- Loans which are listed as credits for following economic industries, sectors in accordance with provisions in the Decision No. 477/2004/QD-NHNN and the Decision No. 143/TCTK-PPCD: Hotel, restaurant; finance, credit; activities related to asset trading and consultancy service; state management and national defense, compulsory social insurance; education and training; health care and social relief activity; cultural and sport activities; activities of Party, unions and associations; activities for the sake of individuals and public; activities of hired housework in private households; activities of international organizations and unions.”

2. To amend, supplement paragraph 3, Article 3 as follows:

“3. Support level for borrowers:

a. Supporting interest rate applicable to borrowers shall be 4% per annum over the loan amount and actual loan term within the period from 01 April 2009 to 31 December 2011.

b. In the event where the borrowers have a demand for medium, long term loans in Vietnamese Dong at commercial banks, finance companies which permit them to use valuable papers, savings book and other forms in currency (hereinafter referred to as valuable papers) as mortgage, guarantee, or where the borrowers have deposits at commercial banks, finance companies and such loans are entitled to interest rate support, the interest rate support shall be performed as follows:

- For valuable papers which were purchased or available (arose) prior to 1 February 2009, the commercial banks, finance companies shall give interest rate support to the entire arisen loans outstanding; for valuable papers which have been purchased or available (have arisen) since 1 February 2009, the commercial banks, finance companies shall only give interest rate support to the loans outstanding equal to the difference between the balance of loans and value of valuable papers used as mortgage or guarantee of the borrowers.

...

...

...

3. To amend, supplement Article 4 as follows:

a. To supplement point e to paragraph 1 as follows

“e. To supply, on a full, honest basis, information, materials to demonstrate the purpose of loans entitled to interest rate support and to take responsibilities to the laws for the accuracy of information, materials supplied to the commercial banks, finance companies.”

b. Point dd, paragraph 2 shall be amended, supplemented as follows

“dd. To perform the inspection before, during and after the lending and take measures of coordinating between commercial banks, finance companies in loan inspection, appraisal to ensure the interest rate support to be performed in compliance with provisions of applicable laws. In case of finding out that the borrower fails to use the loan fund for due purposes which are subjects entitled to interest rate support, the interests previously supported shall be revoked; where it is unable to perform such revocation, it should be informed to competent state authority for settlement or proceeding against the violation of credit contract by the borrower.”

c. Point l, Paragraph 2 shall be amended, supplemented as follows

“l. To manage and archive documents of loans entitled to interest rate support in accordance with provisions at Article 55 of the Law on Credit Institutions and of applicable laws.”

Article 2. Organization of implementation

1. This Circular shall be effective from the signing date. Loans arising since 1 April 2009, being subject entitled to interest rate support in accordance with provisions in this Circular, have not been applied the interest rate support mechanism, commercial banks, finance companies shall carry out the interest rate support in accordance with provisions of applicable laws since the arising date of such loans. If loans are given interest rate support at commercial banks, finance companies in contrary to provisions in this Circular, then commercial banks, finance companies shall adjust credit contract since the date of effectiveness of this Circular.

...

...

...

FOR THE GOVERNOR OF THE STATE BANK OF VIETNAM
DEPUTY GOVERNOR




Nguyen Dong Tien