Decree 36/2022/ND-CP interest rate support for loans in Vietnam Bank for Social Policies under Resolution 43/2022/QH15

DECREE

On interest rate support for loans from the Vietnam Bank for Social Policies, funding sources for loans, allocation of interest rate subsidies and management expenses for the loan of the Vietnam Bank for Social Policies under the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022 on fiscal and monetary policies in support of the socio-economic recovery and development program

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Pursuant to the Law on Organization of the Government dated June 19, 2015; Law on 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 the State Budget dated June 25, 2015;

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

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

At the proposal of the Minister of Finance;

The Government promulgates the Decree on interest rate support for loans from the Vietnam Bank for Social Policies, funding sources for loans, allocation of interest rate subsidies and management expenses for the loan of the Vietnam Bank for Social Policies under the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022 on fiscal and monetary policies in support of the socio-economic recovery and development program.

Article 1. Scope of regulation

This Decree provides for:

1. The mechanism of interest rate support for loans from the Vietnam Bank for Social Policies prescribed at Item b, Point 1.2, Clause 1, Article 3 of 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; and Item d, Point 2, Section II of the Government’s Resolution No. 11/NQ-CP dated January 30, 2022 on the socio-economic recovery and development program and the implementation of the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies supporting the program.

2. Funding sources for loans, allocation of interest rate subsidies and management expenses for the implementation of preferential loan policies of the Vietnam Bank for Social Policies specified at Item b, Point 1.3, Clause 1, Article 3 of the Resolution No. 43/2022/QH15 and Item c, Point 2, Section II of the Resolution No. 11/NQ-CP (hereinafter referred to as preferential loan policies under the Resolution No. 43/2022/QH15).

Article 2. Subjects of application

1. Vietnam Bank for Social Policies.

2. Borrowing customers of the Vietnam Bank for Social Policies (including both organizations and individuals) with loans that fully satisfy the conditions for interest rate support from the state budget as specified in Article 4 of this Decree.

3. Other relevant organizations and individuals.

Article 3. Principles of interest rate support

1. The interest rate support must be given properly to the right subjects according to the specified purposes, ensuring publicity and transparency, avoiding profiteering.

2. The State budget shall fully and timely allocate funding for interest rate support for the Vietnam Bank for Social Policies to provide interest rate support for customers. The total funding for interest rate support shall not exceed 3 trillion dong.

3. The Vietnam Bank for Social Policies shall provide interest rate support in accordance with regulations, create favorable conditions for customers.

4. The interest rate support shall not be applied to outstanding loans or loans with payment deadline extension.

Article 4. Conditions for being eligible for interest rate support from the State budget

Borrowers shall be eligible for interest rate support from the State budget when they fully meet the following conditions:

1. Their loans must fully meet the following conditions:

a) Being in policy credit programs at the Vietnam Bank for Social Policies under: Government’s decrees; the Prime Minister’s decisions; entrustment documents of local authorities, economic organizations, socio-political organizations, associations, non-governmental organizations, individuals in Vietnam and foreign countries; conventions and contracts on on-lending from ODA and foreign concessional loans; other foreign aid agreements;

b) The interest rate of the loans shall be above 6%/year;

c) The loans are disbursed by the Vietnam Bank for Social Policies and the outstanding loans arise during the interest rate support period.

2. The loans must be given properly to the right borrowers according to the specified purposes.

Article 5. Interest rate support period, loan durations applicable to interest rate support, supported interest rate and interest rate support

1. The interest rate support period is from January 01, 2022 to December 31, 2023 or until the Vietnam Bank for Social Policies announces the end of interest rate support as prescribed at Point g, Clause 2, Article 10 of this Decree, whichever comes first.

2. A loan duration applicable to interest rate support shall be counted from the date of disbursement of the loan to the time the customer fully pays the loan principal, but no later than the end of interest rate support period.

3. The supported interest rate for borrowers is 2%/year, calculated on the outstanding loans disbursed during the interest rate support period and their loan durations applicable to interest rate support.

4. The actual interest rate support for a loan shall be determined in accordance with Point b, Clause 3, Article 7 of this Decree.

Article 6. Interest rate support methods

1. The State budget shall provide interest rate support to borrowers through the Vietnam Bank for Social Policies and pay the interest rate support amount to the Vietnam Bank for Social Policies in accordance with this Decree.

2. On a monthly basis, the Vietnam Bank for Social Policies shall calculate the supported interest amount and deduct it from the interest payable by the borrowers.

Article 7. Order of provision of interest rate support from the State budget to the Vietnam Bank for Social Policies

1. Formulation and assignment of state budget estimates for provision of interest rate support:

a) Formulation of state budget estimates for provision of interest rate support shall comply with the Law on the State Budget, Law on Public Investment, Resolution No. 43/2022/QH15, this Decree and related legal documents;

b) The Vietnam Bank for Social Policies shall synthesize the annual interest rate support plans for 2022 and 2023 and send them to the Ministry of Planning and Investment, the Ministry of Finance;

c) Based on the synthesized plan of the Vietnam Bank for Social Policies at Point b of this Clause, the Ministry of Planning and Investment shall assume the prime responsibility for reporting the Government for submission to the National Assembly Standing Committee for permission to supplement the state budget investment and development expenditure estimates to implement the interest rate support in 2022, and summarize, allocate them in the 2023 state budget estimates and submit to the National Assembly for decision;

d) Based on the Resolution of the National Assembly Standing Committee on supplementing the 2022 estimates, the Prime Minister shall decide to allocate central budget funding for supplementing the 2022 public investment plan for the Vietnam Bank for Social Policies. The assignment of the 2023 public investment plan shall comply with current regulations;

dd) Under the annual public investment plan assigned by the Prime Minister, the Vietnam Bank for Social Policies shall allocate the interest rate support limit to branches of the Vietnam Bank for Social Policies. During the course of implementation, the Vietnam Bank for Social Policies shall adjust the interest rate support limits among branches of the Vietnam Bank for Social Policies in case of necessity, ensuring that the total interest rate support limits of the branches do not exceed the annual plan on interest rate support assigned by the competent authority.

2. Implementation of annual state budget estimates for interest rate support:

a) Before the 10^th day of the first month of every quarter, the Vietnam Bank for Social Policies shall send a dossier of request for prepayment of the provided interest rate support of the preceding quarter under this Decree to the Ministry of Finance. Such a dossier must comprise:

- A written request for prepayment of the provided interest rate support, clearly specifying the interest rate support already provided by the Vietnam Bank for Social Policies in the preceding quarter, the requested prepayment amount that is equal to 85% of the interest rate support already provided by the Vietnam Bank for Social Policies in the preceding quarter, and receiving amount of the Vietnam Bank for Social Policies;

- A report on the provision of interest rate support of the preceding quarter, made according to the form in Appendix I to this Decree.

b) Within 15 working days from the date of receiving a complete request dossier from the Vietnam Bank for Social Policies, the Ministry of Finance shall make prepayment of the provided interest rate support specified at Point a of this Clause for the Vietnam Bank for Social Policies in the form of payment order, and notify the Vietnam Bank for Social Policies for coordination in implementation.

c) The total amount prepaid to the Vietnam Bank for Social Policies as prescribed at Point b of this Clause during the implementation and disbursement of funding of the annual public investment plan must not exceed the estimate amount assigned in the year. By January 31, 2023, if the 2022 interest rate support estimate amount is not used up, it shall be transferred to the year 2023 for further interest rate support in accordance with law provisions.

3. Settlement and approval of the settlement of annual interest rate support

a) Branches of the Vietnam Bank for Social Policies shall be responsible for settling annual interest rate support amounts, and making dossiers of interest rate support settlement and send them to the Vietnam Bank for Social Policies (the head office) before February 10 of the year following the settlement year for the approval of the settlement. Loans with interest rate support in the dossiers of settlement must be provided to the right subjects and fully satisfy the conditions for interest rate support as prescribed in this Decree.

b) The determination of the provided interest rate support amount to be settled shall be as follows:

- The interest rate support amount actually paid for a disbursement amount shall be calculated according to the following formula:

In which: - L means the interest rate support amount actually paid for the disbursement amount;

-  means the sum of the products between the outstanding loans and the actual number of days the outstanding loans are provided with interest rate support of the disbursement amount;

- The interest rate support amount actually paid for a loan amount is the total interest rate support sum actually paid to all disbursement amounts of that loan amount that are disbursed during the interest rate support period;

- The total actual interest rate support amount requested to be paid by the State budget is the total actual interest rate support actually paid for all loans fully meeting the conditions for interest rate support from the State budget specified in this Decree.

c) The Vietnam Bank for Social Policies shall consider and approve the settlement for their branches and make the general report on actual interest rate support settlement in the settlement year, using the form in Appendix II to this Decree and send it to the State Audit for audit in accordance with Clause 3, Article 7 of Resolution No. 43/2022/QH15 and relevant legal documents.

d) Before October 01 of the year following the settlement year, the Vietnam Bank for Social Policies shall make a dossier of request for appraisal of the settlement and send it to the Ministry of Finance for appraisal of settlement. A dossier of request for appraisal of interest rate support settlement sent to the Ministry of Finance includes: An official dispatch on request for appraisal of the interest rate support settlement (according to the audited data); a notice on the State Audit’s audit results on interest rate support in the settlement year in the Vietnam Bank for Social Policies (the copy).

4. Appraisal and notification of the appraisal of annual interest rate support settlement

a) Appraisal of interest rate support settlement

Within 10 working days from receiving the dossier of request for appraisal of interest rate support settlement by the Vietnam Bank for Social Policies, the Ministry of Finance shall examine the completeness and validity of the dossier and request additional documents if the dossier is incomplete as prescribed at Point d, Clause 3 of this Article.

After fully receiving the dossier of request for appraisal of interest rate support settlement of the Vietnam Bank for Social Policies, the Ministry of Finance shall appraise the general report on interest rate support settlement according to the following contents:

- Check the assigned interest rate support expenditure estimate in the year, ensuring that it matches the estimate assigned by the competent authority (including the estimate assigned at the beginning of the year, additional and adjusted estimates during the year);

- Check the prepaid amount of the State budget;

- Check to ensure that the total interest rate support amount to be paid by the State budget in the year under the request of the Vietnam Bank for Social Policies has been adjusted according to the State Audit’s conclusions;

- Check the prepaid amount paid by the State budget to the Vietnam Bank for Social Policies that is excessive or insufficient (if any) compared with the appraised amount;

- Other contents or comments (if any).

a) Notification on the appraisal of interest rate support settlement

Within 30 working days from the date of receiving a complete dossier of request for appraisal of interest rate support settlement by the Vietnam Bank for Social Policies, based on the appraisal results of interest rate support settlement specified at Point a of this Clause, the Ministry of Finance shall send a notice on the appraisal of interest rate support settlement to the Vietnam Bank for Social Policies to notify the following data:

- The interest rate support amount provided by the the Vietnam Bank for Social Policies that are paid by the State budget in the year according to audited data of the State Audit, in which the data included in the state budget settlement according to the budget year is the amount already paid to the Vietnam Bank for Social Policies by the state budget from January 01 of the budget year to the end of January 31, 2023 for interest rate support amounts in 2022 and until the end of January 31, 2024 for interest rate support amounts in 2023;

- The remaining amount the state budget has to pay to the Vietnam Bank for Social Policies, either withdraw or deduct from the following year’s payment amount. in case the prepaid amount in the year is lower than the amount stated in the appraisal notice, the difference will be further paid; in case the prepaid amount in the year is higher than the amount stated in the appraisal notice, the difference will be withdrawn, or deducted from the interest support payment amount of the following year.

5. Handling the withdrawal of provided interest rate support amount

a) In the course of implementation, in case it is discovered that a customer’s loan does not meet the conditions for interest rate support from the State budget as specified in this Decree, the Vietnam Bank for Social Policies shall withdraw the entire interest rate support amount provided by the Vietnam Bank for Social Policies;

b) In case the State budget has paid the provided interest rate support amount or already settled the interest rate support for the loan amount specified at Point a of this Clause, the Vietnam Bank for Social Policies shall refund it to the State budget or report to deduct into the interest rate support payment amount of the following year.

Article 8. Funding sources for loans and allocation of interest rate subsidies and management expenses

1. Funding sources for loans

a) The Bank for Social Policies may issue government-guaranteed bonds for loan for preferential loan policies specified at Item b, Point 1.3, Clause 1, Article 3 of the Resolution No. 43/2022/QH15;

b) The total limit for issuance of government-guaranteed bonds for loan for preferential loan policies under the Resolution No. 43/2022/QH15 is 38.4 trillion dong and do not exceed the total outstanding credit loans of preferential loan policies under the Resolution No. 43/2022/QH15 at the end of the implementation of Resolution No. 43/2022/QH15 plus the cash balance, calculated on the total outstanding credit loans mentioned at this Point. The cash balance ratio is determined according to the maximum ratio of cash balance and deposits at other credit institutions to ensure the solvency and payment when determining the amount of allocation of interest rate subsidies and management expenses according to the regulation on financial management of the Vietnam Bank for Social Policies;

 c) The funding of government-guaranteed bonds specified in this Clause shall be included in the total funding of the Vietnam Bank for Social Policies and accounted, managed and used in accordance with the regulation on financial management of the Vietnam Bank for Social Policies;

d) During the period when the government-guaranteed bond funding has not been issued or has not been issued sufficiently, the Vietnam Bank for Social Policies may use the Bank’s lawful funding sources to implement preferential loan policies under Resolution No. 43/2022/QH15.

2. Allocation of interest rate subsidies and management expenses

a) The Vietnam Bank for Social Policies shall be allocated interest rate subsidies and management expenses from the State budget for the implementation of preferential loan policies under the Resolution No. 43/2022/QH15 according to the mechanism of allocation of interest rate difference subsidies and management expenses when providing loans for poor peoples and other policy beneficiaries as specified in the regulation on financial management of the Vietnam Bank for Social Policies;

b) Funding sources for allocation of interest rate subsidies and management expenses

- Funding sources for allocation of interest rate subsidies and management expenses in the 2022 - 2023 period for the implementation of preferential loan policies under the Resolution No. 43/2022/QH15 shall be 2 trillion dong specified at Item b, Point 1.2, Clause 1, Article 3 of the Resolution No. 43/2022/QH15;

- Funding sources for allocation of interest rate subsidies and management expenses after 2023 for the outstanding loans of preferential loan policies under the Resolution No. 43/2022/QH15 shall be allocated from public investment funding sources in accordance with the Law on the State Budget, Law on Public Investment and guiding documents (if any).

Article 9. Reporting regime

1. On a quarter and annual basis, and at the end of the program, the Vietnam Bank for Social Policies shall send the Ministry of Finance reports on interest rate support results of the whole system, made according to the form in Appendix I to this Decree.

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 10 days from the end of the quarter;

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

- For reports at the end of the program: 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 January 01, 2022; the time of ending data collection is December 31, 2023 or the time of notifying the end of interest rate support specified at Point g, Clause 2, Article 10 of this Decree, 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 specified by law.

Article 10. Organization of implementation

1. Responsibilities of borrowers eligible for interest rate support

a) Use the loans for the right purposes as prescribed;

b) If the borrowers do not meet conditions for interest rate support from the State budget prescribed in this Decree, they must refund the Vietnam Bank for Social Policies: the entire loans for which borrowers are not eligible and/or the loans that are used for wrong purposes (if any); the interest rate support amount of their loans not meeting the conditions for interest rate support from the State budget.

2. Responsibilities of the Vietnam Bank for Social Policies

a) Synthesize the demand for funding for interest rate support, allocation of interest rate subsidies and management expenses and send it to the Ministry of Planning and Investment and the Ministry of Finance for allocating it for the Vietnam Bank for Social Policies in accordance with the Law on the State Budget, Law on Public Investment, Resolution No. 43/2022/QH15 and guiding documents (if any);

b) Guide branches of the Vietnam Bank for Social Policies to make quarterly, annual reports and report at the end of the program on their interest rate support results; direct them to implement the interest rate support and interest rate support settlement in accordance with this Decree and other relevant legal documents;

c) Consider and approve the interest rate support settlement, synthesize reports on interest rate support settlement in accordance with this Decree and other relevant legal documents;

d) Take full responsibility for the legality, completeness, validity and accuracy of the dossier of request for appraisal of the settlement and report data for request for interest rate support from the State budget. Keep all records of interest rate support for each loan with supported interest rate in accordance with regulations;

dd) Report on the interest rate support results in accordance with the regulations on the reporting regime specified in Article 9 of this Decree;

e) Provide loans to the right beneficiaries; carry out the examination before, during and after lending to ensure that the interest rate support complies with law regulations. In case it is discovered that a borrower does not meet the conditions for interest rate support from the State budget, the Vietnam Bank for Social Policies shall withdraw the entire loans for which borrowers are not eligible and/or the loans that are used for wrong purposes (if any); the interest rate support amount of their loans not meeting the conditions for interest rate support from the State budget;

g) Based on the actual interest rate support situation, if the funding for interest rate support allocated to the Vietnam Bank for Social Policies specified in the Resolution No. 43/2022/QH15 is insufficient for interest rate support for 01 following month, the Vietnam Bank for Social Policies shall end the interest rate support, publicly make an announcement on the portal and at the headquarters of the Vietnam Bank for Social Policies on the time of interest rate support completion, and report on such time to the Prime Minister and the Ministry of Finance;

h) Separately monitor the outstanding credit loans of preferential loan policies under the Resolution No. 43/2022/QH15 with the following principles:

- For preferential loan policies that make an increase in outstanding credit loans of preferential loan policies under the Resolution No. 43/2022/QH15 and also make an increase in outstanding credit loans of policy credit programs assigned by the Prime Minister on an annual basis (excluding plan to increase outstanding credit loans of preferential loan policies according to the Resolution No. 43/2022/QH15), to calculate the outstanding credit loans of preferential loan policies under the Resolution No. 43/2022/QH15 in advance until the maximum outstanding credit loans of such loan program;

- For loan program for pupils and students to cover their study expenses under the Prime Minister’s Decision No. 157/2007/QD-TTg dated September 27, 2007 regarding the credit applicable to pupils and students and its amending and supplementing documents, to only calculate the outstanding credit loans under the Resolution No. 43/2022/QH15 after the funding sources from the State budget and loans borrowed from the State Bank of Vietnam that are allocated for this program have all been used up.

i) Calculate, determine and take responsibility for the amount of allocation of interest rate subsidies and management expenses when implementing preferential loan policies under the Resolution No. 43/2022/QH15;

k) Report to the Ministry of Planning and Investment and the Ministry of Finance to summarize, report to the Government, the Prime Minister on the issuance of government-guaranteed bonds and lending according to the preferential loan policies under the Resolution No. 43/2022/QH15 and submit them to the National Assembly in April 2024.

3. Responsibilities of the Ministry of Finance

a) Based on the State budget estimates as assigned to allocate funding for interest rate support to the Vietnam Bank for Social Policies in accordance with this Decree;

b) Appraise the settlement of interest rate support and issue a notice on appraisal of the interest rate support settlement to the Vietnam Bank for Social Policies in accordance with this Decree.

4. Responsibilities of the Ministry of Planning and Investment: Assume the prime responsibility for, and coordinate with the Ministry of Finance in, submitting to competent authorities for balancing and allocation of funding for interest rate support, allocation of interest rate subsidies and management expenses for the Vietnam Bank for Social Policies in accordance with the Law on the State Budget and Law on Public Investment, Resolution No. 43/2022/QH15 and guiding documents (if any).

5. Responsibilities of local authorities at all levels

a) Closely coordinate with the Vietnam Bank for Social Policies in providing interest rate support as prescribed in this Decree;

b) Direct the representative board of the Board of Directors of the Vietnam Bank for Social Policies at all levels to regularly inspect and supervise the implementation of this Decree.

6. The Central Committee of the Vietnam Fatherland Front and socio-political organizations and unions are requested to participate in the dissemination, coordination in implementation, and supervision of the implementation of this Decree.

Article 11. Implementation provisions

1. This Decree takes effect on the signing date.

2. For loans that fully satisfy the conditions specified in Article 4 of this Decree, are disbursed by the Vietnam Bank for Social Policies in the period from January 1, 2022 to the date before the effective date of this Decree and for which the settlement has not been completed, the interest rate support shall be provided in accordance with this Decree.

3. The Ministry of Finance, the Ministry of Planning and Investment, the Vietnam Bank for Social Policies and relevant organizations and individuals shall be responsible for the implementation of this Decree.

* All Appendices are not translated herein.