The Decision No. 29/2011/QD-TTg dated June 01, 2011 of the Prime Minister on issuing List of industries, lines receiving preferential interest rate when on-lending Government’s ODA loans

12 INDUSTRIES ARE ALLOWED TO RECEIVE ODA LOANS WITH PREFERENTIAL INTEREST RATES

On June 01, 2011, the Prime Minister issued the Decision No. 29/2011/QD-TTg issuing List of industries,  lines receiving preferential interest rate when on-lending Government’s ODA loans.

According to this list, there are 12 industries,  lines receiving preferential interest rate when on-lending Government’s ODA loans such as building fresh water supply system for industries and urban livings; the projects on collecting and processing urban solid wastes and industrial solid wastes; processing industrial waste water; building and investing on equipments of health organizations which are capable of recovering capital; Investment and construction projects on education, training and vocational organizations which are capable of recovering capital; building railway; building highway; building deep-water harbor.

For finance, credit groups, credit program/composition via policy banks (Vietnam Development Bank, Vietnam Bank for Social Policies) or other financial and credit institutions for on-lending objectives in Government’s policy or in the particular design of credit program/composition approved by the Government.

According to the regulations in the Decree No. 78/2011/ND-CP on on-lending of the Government's foreign loans, this preferential interest rate is 30% interest rate for foreign currency loans or relevant Vietnam dong are not lower than the interest rate on foreign loans.

Programs and projects of on-lending ODA loans that on-lending conditions are approved by a competent agency before this Decision’s effective date continue to apply approved conditions. In the necessary cases, the Minister of Finance reports to the Prime Minister to consider, determine in amending, supplementing the List.