Gov't Issues New Statute on State Investment and Export Credit
The Vietnam government has issued a decree regulating provision of investment and export credit for both domestic and foreign businesses.
Under the decree, the government will support credit to enterprises and businesses whose projects require investment loans, guarantees for credit, and post-investment support.
Both domestic businesses with export contracts and foreign businesses which require credit or guarantees for exports from the government will be eligible to such credit support.
Under the decree, businesses will receive a maximum state investment credit of up to 70 per cent of the total project cost, after receiving approval from the Vietnam Development Bank.
The bank will also determine lending terms with a maximum period of 12 months, the lending interest rate will remain unchanged for the whole term and will be calculated in Vietnamese dong based on coupons of five-year government bonds plus 0.5 per cent annually.
Businesses will have to pay 150 per cent of the lending interest rate on overdue debts after the loans mature.
Also, import and export businesses can access a maximum of 85 per cent of the value of signed import and export contracts, letters of credit or any other valid bills of exchange.
But, lending terms should not exceed 12 months and the Ministry of Finance will decide the interest rate depending on markets.
Repayment, debt extension and cancellation will be applicable on risks such as natural calamities, fires, sudden accidents, and political problems, among others.
P.V
Vietnamese
