Decision No. 813/QD-NHNN dated April 24, 2017 of the State Bank of Vietnam on the loan provision program serving high-tech and clean agriculture development under the Government’s Resolution No. 30/NQ-Cp dated March 07, 2017

THE STATE BANK OF VIETNAM 

Decision No. 813/QD-NHNN dated April 24, 2017 of the State Bank of Vietnam on the loan provision program serving high-tech and clean agriculture development under the Government’s Resolution No. 30/NQ-Cp dated March 07, 2017

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

Pursuant to the Law on High Technologies No. 21/2008/QH11 dated November 13, 2008;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 on functions, tasks, power and organizational structure of the State Bank of Vietnam;

Pursuant to the Government’s Decree No. 55/2015/ND-CP dated June 09, 2015 on credit policies on agricultural and rural development;

Pursuant to the Decision No. 899/QD-TTg dated June 10, 2013 by the Prime Minister on approval of the project on agricultural restructuring towards raising added values and sustainable development;

Pursuant to the Government’s Resolution No. 30/NQ-CP dated March 07, 2017 on the frequent session of the Government in February 2017;

Pursuant to the Circular No. 39/2016/TT-NHNN dated December 30, 2016 by the State Bank of Vietnam on provision of loan by foreign credit institutions and bank branches for borrowers;

At the request of the Director of the Department of Credit in Economy,

DECIDES:

Article 1. Scope of adjustment and subject of application

1. Scope of adjustment

This Decision deals with the loan provision program serving high-tech and clean agriculture development under the Government’s Resolution No. 30/NQ-CP dated March 07, 2017 (hereinafter referred to as “the Program”).

2. Subject of application

a) Eligible borrowers including legal entities and individuals that wish to take loans for high-tech or clean agriculture project/plan according to definitions stated in the Decision No. 738/QD-BNN-KHCN dated March 14, 2017 by the Ministry of Agriculture and Rural Development.

b) Commercial banks established and operating in accordance with provisions of the Law on Credit Institutions.

Article 2. Rules and requirements for taking loans

Commercial banks shall provide borrowers with loans for carrying out the Program in line with rules for granting and taking loans and requirements for taking loans mentioned in Article 4 and Article 7 of the Circular No. 39/2016/TT-NHNN dated December 30, 2016 by the State Bank of Vietnam (hereinafter referred to as "Circular No. 39/2016/TT-NHNN”).

Article 3. Interest rates

Commercial banks shall provide borrowers with short-term/medium-term/long-term loans in VND for carrying out the Program with the interest rate that is lower than the normal interest rates with the same term by 0.5% - 1.5% per year in accordance with provisions of the Circular No. 39/2016/TT-NHNN.

Article 4. Budget and loan amount

1. The budget for the Program of a commercial bank is its customers’ deposits.

2. The loan amount shall be agreed upon by and between the commercial bank and the borrower under the provision of Article 12 of the Circular No. 39/2016/TT-NHNN.

Article 5. Collateral

1. The commercial bank and the borrower may reach an agreement on whether or not the loan is secured by collateral in accordance with regulations of law.

2. Borrowers applying for loan under the Program shall be entitled to put up the property derived from the loan as collateral for the loan.

Article 6. Loan restructuring and grant of new loan

1. If the borrower finds it difficult to repay the loan due to force majeure events, the commercial bank may consider:

a) restructuring the loan in line with the ability to repay the loan of the borrower. When restructuring the loan for the first time, the commercial bank may postpone reassign the loan to another category;

b) granting new loan for business recovery if the borrower has a feasible business plan.

2. According to applicable regulations and financial capacity, the commercial bank shall consider providing other assistance (including remission of interest or overdue interest; collecting the principal before the interest) in order to assist the borrower in overcoming difficulties and recovering the business.

Article 7. Provision and risk management

The commercial bank shall make provisions and manage risks of loan amount related to the Program in accordance with regulations of law.

Article 8. Rights and responsibilities of borrowers

1. Have the right to receive incentives from high-tech and clean agriculture development stated herein.

2. Provide sufficient information at the request of the commercial bank and take responsibility for the accuracy thereof.

3. Use the loan for the intended purposes, fulfill the commitments stated in the credit agreement and repay the principal and interest in accordance with regulations.

4. Facilitate inspections and supervision carried out by the commercial bank in the process of applying for and using the loan.

Article 9. Rights and responsibilities of commercial banks

1. Set a budget for granting loans for hi-tech and clean agriculture projects of eligible borrowers according to provisions of this Decision; cut operating costs to reduce interest rates and assist borrowers in hi-tech and clean agriculture development.  

2. Make plans and provide consistent written guidance on granting loans for hi-tech and clean agriculture development.

3. Enhance dissemination of the Program; enable eligible borrowers to take loans in a transparent manner.

4. According to the amount of loans granted and the proposals of commercial banks, the State Bank of Vietnam (SBV) shall consider cancelling medium-term/long-term outstanding loans under the Program of commercial banks when calculating the maximum rate of the short-term budget used for granting medium-term and long-term loans in accordance with regulations of the SBV.

5. Report promptly to the SBV (Department of Credit in Economy) on difficulties and issues related to grant of loans provided for herein; make monthly reports on results of the Program according to Appendix No. 1 attached hereto to the SBV before the 10^thday of the following month.

Article 10. Responsibilities of authorities affiliated to the SBV

1. The Department of Credit in Economy:

a) Take charge and cooperate with relevant authorities in advising the SBV Governor to implement this Decision; and act as a focal point to deal with difficulties and issues in the course of implementation;

b) Gather quarterly reports on results of granting loan for high-tech and clean agriculture development stated herein to the SBV Governor; and transfer such reports to banking inspection and supervision authorities.

2. Banking inspection and supervision authorities:

a) Carry out inspections and supervision of loan granted by commercial banks to organizations and individuals in accordance with provisions of this Decision and relevant legal documents;

b) Cooperate with the Department of Credit in Economy and relevant authorities in dealing with issues arising in the course of implementation of this Decision.

3. SBV’s branches in provinces/central-affiliated cities:

a) Direct implementation and keep track of loan for high-tech and clean agriculture development granted by commercial banks in their provinces/central-affiliated cities (hereinafter referred to as "provinces”); report promptly issues arising in the course of implementation of this Decision to the SBV Governor;

b) Cooperate with Departments and relevant authorities of their provinces in supervising loan for high-tech and clean agriculture development granted by commercial banks; advise People’s Committees of provinces promptly to deal with issues arising in the course of implementation of the Program;

c) Make monthly reports on results of implementation of the Program according to Appendix No. 2 attached hereto to the SBV (Department of Credit in Economy) before the 10th day of the following month.

Article 11. Transitional provisions

1. If the commercial bank and the borrower have a credit agreement concluded before the effective date of this Decision, they may decide whether to continue to execute such agreement in accordance with regulations of law effective when the agreement is concluded or revise the agreement in line with provisions of this Decision.

2. The borrowers mentioned in Point a Clause 2 Article 1 herein that are eligible for credit policies serving agricultural and rural development under the Government s Decree No. 55/2015/ND-CP dated June 09, 2015 shall be entitled to the incentives of such Decree and this Decision.

Article 12. Implementation provisions

1. This Decision takes effect on the signing date and terminates when it is replaced by another document.

2. Chiefs of secretariat, Director of the Department of Credit in Economy, heads of banking inspection and supervision authorities, and heads of authorities affiliated to the SBV; Directors of SBV’s branches in provinces; Chairs of Boards of Members, Chairs of Boards of Directors, General Directors of commercial banks and the entities mentioned in Clause 2 Article 1 herein shall implement this Decision.

For the Governor

The Deputy Governor

Nguyen Dong Tien

REPORT ON THE LOAN PROVISION PROGRAM SERVING HIGH-TECH AND CLEAN AGRICULTURE DEVELOPMENT

(Attached to the Decision No. 813/QD-NHNN dated April 24, 2017 by the SBV on the loan provision program serving high-tech and clean agriculture development under the Government’s Resolution No. 30/NQ-CP dated March 07, 2017)

(Month, year)…………..

Unit: VND million, person

Notes:

1. This report shall be prepared by the commercial bank participating in the Program.

2. Deadline for submitting the report: The 10^thday of the following month.

3. The report shall be made in writing and sent to the email address: [email protected]

4. Recipient: The Department of Credit in Economy, 25 Ly Thuong Kiet Street, Hoan Kiem, Hanoi. Telephone: 04.3934 9428

5. Column No. (2):

- Provinces shall be sorted alphabetically;

- Other high-tech agriculture projects shall be considered according to the criteria mentioned in Point dd Clause 2 Article 3 of the Decision No. 738/QD-BNN-KHCN.

6. Column No. (10) and (11): Interest rate is the common interest rate from the lowest to the highest rate of the bank.

7. The report shall be made in Excel file and Times New Roman font.

REPORT ON THE LOAN PROVISION PROGRAM SERVING HIGH-TECH AND CLEAN AGRICULTURE DEVELOPMENT

(Attached to the Decision No. 813/QD-NHNN dated April 24, 2017 by the SBV on the loan provision program serving high-tech and clean agriculture development under the Government’s Resolution No. 30/NQ-CP dated March 07, 2017)

 (Month, year)…………..

Unit: VND million, person

Notes:

1. This report shall be prepared by the SBV’s branch in the province having commercial bank participating in the Program.

2. Deadline for submitting the report: The 10th day of the following month.

3. The report shall be made in writing and sent to the email address: [email protected]

4. Recipient: The Department of Credit in Economy, 25 Ly Thuong Kiet Street, Hoan Kiem, Hanoi. Telephone: 04.3934 9428

5. Column No. (2): Other high-tech agriculture projects shall be considered according to the criteria mentioned in Point dd Clause 2 Article 3 of the Decision No. 738/QD-BNN-KHCN.

6. Column No. (10) and (11): Interest rate is the common interest rate from the lowest to the highest rate of the bank. 

7. The report shall be made in Excel file and Times New Roman font.