From November 08, 2019, a production enterprise may borrow up to VND 2 billion/project from the National Employment Fund
On September 23, 2019, the Government promulgates the Decree No. 74/2019/ND-CP on amending and supplementing a number of articles of the Decree No. 61/2015/ND-CP on job creation policies and the National Employment Fund.
Accordingly, from the effective date of this Decree, production and business enterprises may borrow a maximum of VND 2 billion for a project and of VND 100 million of creating, maintaining and expanding jobs for an employee from the National Employment Fund. On the basis of the capital resources, production and business cycle, and the debt repayment capacity of borrowers, the Vietnam Bank for Social Policies shall consider specific loan level and negotiate with the borrower for it.
Besides, the maximum loan duration is 120 months that is doubled compared with the previous regulation. Simultaneously, in cases of loan levels of VND 100 million and more, the production and business enterprise must have loan collateral as prescribed by secured transactions regulations.
In addition, the Decree also amends a number of contents concerning loan collateral conditions; capital mobilization for lending to support employees working abroad under contracts;… and annuls the regulations relating formulation and approval of loan plan and employment target prescribed in the Decree No. 61/2015/ND-CP.
This Decree takes effect on November 08, 2019.