THE GOVERNMENT | | THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness |
No. 32/2017/ND-CP | | Hanoi, March 31, 2017 |
DECREE
On state investment credit[1]
Pursuant to the June 19, 2015 Law on Organization of the Government;
Pursuant the May 26, 2015 Law on the State Budget;
Pursuant to the November 26, 2014 Law on Investment;
Pursuant to the June 18, 2014 Law on Public Investment;
Pursuant to the June 17, 2009 Law on Management of Public Debts;
Pursuant to the June 16, 2010 Law on Credit Institutions;
At the proposal of the Minister of Finance;
The Government promulgates the Decree on state investment credit.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation and subjects of application
1. This Decree prescribes the policy on state investment credit to be implemented by the Vietnam Development Bank.
2. This Decree applies to:
a/ Enterprises and non-business units enjoying financial autonomy and other economic organizations acting as owners of projects on the list of projects eligible for state investment loans;
b/ The Vietnam Development Bank;
c/ Agencies, organizations and individuals involved in the state investment credit facilitation.
Article 2. Principles of provision of state investment loans
1. These loans shall be provided to the entities eligible for state investment loans specified in this Decree.
2. Projects eligible for state investment loans are those that have been appraised and evaluated by the Vietnam Development Bank as being efficient and capable of fully paying loan principals and interests.
3. Loans shall be granted according to the procedures prescribed by law.
4. Borrowers shall use loans for proper purposes; fully pay loan principal and interest within time limits stated in signed credit contracts; fulfill all of their commitments in credit contracts and fully comply with the provisions of this Decree.
5. State investment loan interest rate must proceed to cover capital costs, operation expenses and credit risk provisions in operations of the Vietnam Development Bank.
Article 3. Interpretation of terms
In this Decree, the terms and expressions below are construed as follows:
1. “Borrowers” include enterprises and non-business units enjoying financial autonomy and other economic organizations borrowing state investment loans from the Vietnam Development Bank.
2. “Affiliated persons” means organizations and individuals defined in Clause 28, Article 4 of the Law on Credit Institutions.
3. “Loan term” means a period of time counted from the time the Vietnam Development Bank disburses a loan to the time the borrower has to fully pay the loan principal and interest as agreed upon in the credit contract between the Vietnam Development Bank and such client.
4. “Grace period” means a period of time counted from the time the Vietnam Development Bank disburses a loan to the time the borrower starts paying the loan principal as agreed upon in the credit contract. During the grace period, the borrower is not yet required to pay the loan principal but shall pay the loan interest under the signed credit contract, unless otherwise prescribed by the Prime Minister.
5. “Debt payment time limit” means a period of time from the time a borrower has to start repaying a loan to the time such loan is fully repaid under the credit contract.
6. “Debt payment terms” means periods of time within the debt payment time limit as agreed upon between the Vietnam Development Bank and a borrower at the end of which such borrower has to repay part of or the whole loan to the Vietnam Development Bank.
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