Decision 11/2022/QD-TTg on credit applicable to non-public early childhood and primary schools affected by the COVID-19 pandemic

DECISION

On credit applicable to non-public early childhood and primary schools affected by the COVID-19 pandemic

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Pursuant to the Law on Organization of the Government dated June 19, 2015 and the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Public Investment dated June 13, 2019;

Pursuant to the Education Law dated June 14, 2019;

Pursuant to the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022, on fiscal and monetary policies supporting socio-economic recovery and development program;

Pursuant to the Government’s Decree No. 78/2002/ND-CP dated October 04, 2002, on credit for poor people and other policy beneficiaries;

At the proposal of the Minister of Education and Training;

The Prime Minister hereby promulgates the Decision on credit applicable to non-public early childhood and primary schools affected by the COVID-19 pandemic.

Article 1. Scope of regulation

This Decision regulates the Bank for Social Policies’ credit policy applicable to non-public early childhood and primary schools in accordance with the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022, on fiscal and monetary policies supporting socio-economic recovery and development program (hereinafter referred to as the Resolution No. 43/2022/QH15) and the Government’s Resolution No. 11/NQ-CP dated January 30, 2022, on the socio-economic recovery and development program and implementation of the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022, on fiscal and monetary policies supporting the program (hereinafter referred to as the Resolution No. 11/NQ-CP).

Article 2. Subjects of application

1. Bank for Social Policies.

2. Borrowers that are legal entities or individuals that are eligible for loans specified in Clause 1 Article 3 of this Decision.

3. Other related organizations and individuals.

Article 3. Eligible borrowers and lending conditions

1. Eligible borrowers

Non-public early childhood and primary schools, including Private and people-founded childcare groups, pre-primary classes, early childhood classes (hereinafter collectively referred to as private and people-founded early childhood education institutions); private and people-founded nurseries, pre-primary schools and early childhood schools (hereinafter collectively referred to as private and people-founded early childhood schools); private primary schools in accordance with law.

2. To be eligible for the loans, borrowers must satisfy the following conditions:

a) Being formed and operating in accordance with law.

b) Having its operation suspended at least 1 month up to the time of borrowing due to requirements for COVID-19 prevention and control.

c) Having a plan on borrowing loans for recovering and maintaining operation, that is made according to Form No. 01 provided in Appendix to this Decision and appraised by the Bank for Social Policies.

d) Having no non-performing loan owed to any credit institutions or foreign bank branches arising before January 23, 2020, by the time of proposing for a loan.

Article 4. On-lending method

The Bank for Social Policies shall make direct loans to borrowers.

Article 5. Loan use purpose

Loans shall be used for repairing physical foundations; purchasing medical supplies and equipment for COVID-19 prevention and control; purchasing nurturing, caring and educational equipment for rehabilitation and maintenance.

Article 6. Loan limit

1. The maximum loan for a people-founded or private early childhood education institution is 80 million VND.

2. The maximum loan for a people-founded or private early childhood school or a private primary school is 200 million VND.

3. The Bank for Social Policies may decide on a specific loan amount to be provided for a case based on the plan on borrowing loans specified at Point c Clause 2 Article 3 of this Decision.

Article 7. Loan currency

Loans shall be provided and recovered in Vietnam dong.

Article 8. Loan terms

The maximum loan term is 36 months.

Article 9. Loan interest rate

1. The loan interest rate is 3.3%/year.

2. The overdue debt interest rate is equal to the loan interest rate applicable to poor households at the time of borrowing.

Article 10. Loan security

1. Borrowers specified in this Decision who borrow up to 100 million VND are not required to provide loan security.

2. Borrowers specified in this Decision who borrow more than 100 million VND are required to provide loan security in accordance with the Bank for Social Policies’ regulations.

Article 11. Funds for lending and time limit for disbursement

1. The fund for lending as specified in this Decision is 1,400 billion VND maximum, allocated from the issuance of government-guaranteed bonds of the Bank for Social Policies in accordance with the Resolution No. 11/NQ-CP.

2. The use of funds shall comply with the Resolution No. 43/2022/QH15, Resolution No. 11/NQ-CP and relevant guiding documents.

3. The time limit for disbursement of loans is December 31, 2023, or the time of running out of the fund for lending as specified in Clause 1 of this Article, whichever comes first.

Article 12. Debt extension, classification and handling of risky debt

The current law on debt extension, classification and handling of risky debt at the Bank for Social Policies shall be complied with.

Article 13. Dossiers, order and procedures for lending to non-public early childhood and primary schools

1. A dossier of request for borrowing comprises:

a) A plan for borrowing loans, made according to Form No. 01 in the Appendix to this Decision.

b) Copies of papers suitable to the form of operation, including a decision on permission for establishment issued by a competent state agency; a decision on permission for educational activities of a people-founded or private early childhood school, or private primary school; papers and documents proving the borrower’s legal representative status.

c) A power of attorney (if any).

2. The borrower shall send the dossier to the Bank for Social Policies of the locality where the non-public early childhood or primary school is registered for establishment.

3. Within 5 working days for the loan limit without loan security and within 10 working days for the loan limit with loan security, from the date on which the complete dossier of request for loans is received, the Bank for Social Policies shall approve the loans. In case of refusal, it shall reply in writing and clearly state the reason to the borrower.

Article 14. Reports on lending results of non-public early childhood and primary schools

1. On a quarter and annual basis, and at the end of the program, the Bank for Social Policies shall send the Ministry of Education and Training a report on lending results, made according to Form No. 02 provided in Appendix to this Decision.

2. Time limit for sending reports, the period for closing data and methods of sending reports:

a) Time limit for sending reports:

- For quarterly reports: Within 15 days from the end of the quarter;

- For annual reports: Within 60 days from the end of the year;

- For reports on the ending of programs: Within 60 days from the end of the program.

b) Period for closing quarterly or annual report data: The time of starting data collection is the first day of the reporting quarter or year; the time of ending data collection is the last day of the reporting quarter or year.

c) Period for closing ending program report data: The time of starting data collection is the time this Decision takes effect; the time of ending data collection is December 31, 2023, or the time of running out of the fund for lending, whichever comes first.

d) A report shall be sent according to one of the following methods:

- Send directly in the form of paper documents;

- Send by post in the form of paper documents;

- Send via e-mail system or specialized reporting information software system;

- Other methods as prescribed by law.

Article 15. Organization of implementation

1. Borrowers shall be responsible for using the loans properly in accordance with this Decision and making a sufficient payment on schedule to the Bank for Social Policies.

2. The Bank for Social Policies shall:

a) Provide guidance on dossiers, processes and procedures for lending according to regulations, ensuring simplicity, clarity, ease of implementation, publicity and transparency.

b) Provide loans according to credit policies, ensuring that the borrowers are eligible subjects with the right purposes as prescribed in this Decision.

c) Carry out inspection and supervision of the use of loans and repayment of borrowers according to regulations.

d) Send periodic reports on the lending results to the Ministry of Education and Training according to Article 14 of this Decision.

dd) Based on the actual implementation, 1 month before running out of the maximum fund for lending as prescribed in Clause 1 Article 11 of this Decision, the Bank for Social Policies shall publicly announce the expected time for completing the fund disbursement on its portal and head office, at the same time, report the Prime Minister and the Ministry of Education and Training the expected time for completing the fund disbursement.

e) Coordinate with ministries and branches, report to the competent authorities for timely handling of difficulties arising in the course of lending in accordance with this Decision.

3. The Ministry of Education and Training shall assume the prime minister for reporting to the Prime Minister to amend and supplement this Decision (if necessary).

4. People's Committees of provinces and centrally-run cities shall direct the commune-level People's Committees to confirm the conditions for borrowing loans as specified at Point b Clause 2 Article 3 of this Decision.

5. Relevant agencies shall, based on their assigned tasks and functions, coordinate to implement this Decision.

Article 16. Handling of violations

Individuals, agencies and organizations that abuse the policies prescribed in this Decision to make personal profits and violate the law, upon the nature and seriousness of the violation, shall be required to make compensation, be disciplined, administratively sanctioned or examined for penal liability in accordance with the law.

Article 17. Implementation provisions

1. This Decision takes effect from the date of its signing.

2. Ministers, heads of ministerial-level agencies, heads of governmental-attached agencies, chairpersons of Peoples Committees of provinces and centrally-run cities, chairperson of the board of directors and General Director of the Bank for Social Policies shall implement this Decision.

* All Appendices are not translated herein.