Decision No. 131/QD-TTg of January 23, 2009, on interest rate supports for organizations and individuals that take bank loans for production and business.

DECISION

ON INTEREST RATE SUPPORTS FOR ORGANIZATIONS AND INDIVIDUALS THAT TAKE BANK LOANS FOR PRODUCTION AND BUSINESS

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 12, 1997 Law on the State Bank of Vietnam and the June I7. 2003 Law Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam;
Pursuant to the December 12, 1997 Law on Credit Institutions and the June 15, 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the Government's Resolution No. 30/2008/NQ-CP of December 11, 200S, on urgent solutions to curb economic decline, maintain economic growth and assure social welfare;
At the proposal of the Governor of the State Bank of Vietnam, the Minister of Finance and the Minister of Planning and Investment,

DECIDES:

Article 1. In 2009 the Stale will provide interest rate supports for organizations and individuals that take bank loans for production and business in order to reduce costs of products and goods, maintain production and business and generate jobs when the economy is affected by the world financial crisis and economic recession.

Article 2. Subjects and scope of application

1. Credit institutions which provide loans to organizations and individuals (below collectively referred to as borrowers) under law, including state commercial banks, joint-stock commercial banks, joint-venture banks, Vietnam-based branches of foreign banks, wholly foreign-owned banks and the Central People's Credit Fund (below collectively referred to as commercial banks).

2. Vietnam dong short-term bank loans granted under credit contracts signed and performed in 2009 to organizations (enterprises, cooperatives, cooperative groups, households, etc.,) or individuals for use as working capital for production and business and indicated in credit statistics according to the State Bank of Vietnam's regulations on reporting and statistics, except loans in the branches and domains listed in the Appendix to this Decision.

Article 3. Principles of interest rate support, loan term, loan amounts and support interest rate

1. Interest-rate support principles are that commercial banks shall provide loans for use as working capital for production and business activities under the ordinary credit mechanism and provide interest rate supports under the Prime Minister's regulations and the State Bank of Vietnam's guidance; commercial banks may not refuse to provide interest rate supports for eligible loans; and shall periodically report on the provision of interest rate supports to the Slate Bank of Vietnam for examination and supervision.

2. The maximum term of loans eligible for interest rate supports is 8 months for loans under credit contracts signed and performed between February 1 and December 31, 2009.

3. The support interest rate applicable to borrowers is 4%/year, calculated on the actual loan amount and loan term within the duration specified in Clause 2 of this Article; when collecting loan interests, commercial banks shall reduce payable interest amounts for borrowers.

Article 4. Organization of implementation

1. This Decision takes effect on the date of its signing.

2. The State Bank of Vietnam shall assume the prime responsibility for. and collaborate with the Ministry of Finance in, guiding, examining and supervising the implementation of this Decision.

3. Responsibilities of commercial banks and borrowers

a/ Commercial banks shall:

- Provide interest rate supports for borrowers under the Prime Minister's regulations and the State Bank of Vietnam's guidance;

- Within the first 10 days of February 2009, send written registrations of and plans on interest rate supports to the State Bank of Vietnam and immediately provide interest rate supports for borrowers;

- Apply the ordinary lending mechanism and interest rate upon signing credit contracts; reduce, upon collecting loan interests from borrowers, interests by 4%/year calculated on the actual loan amounts and loan term in 2009; and may, based on quarterly reports, have these interest reductions refunded by the Slate Bank of Vietnam;

- On the 10Ih of the first month every quarter, report to the State Bank of Vietnam on interest-rate support sums and registrations of the subsequent quarter's interest-rate support sums.

b/ Borrowers eligible for interest rate supports shall send written requests for interest rate supports to commercial banks where they take loans for interest rate supports.

4. The Governor of the State Bank of Vietnam, ministers, heads of ministerial-level agencies, heads of government-attached agencies, presidents of provincial-level People's Committees, and chairmen of boards of directors and general directors of commercial banks shall implement this Decision.

APPENDIX

VIETNAM DONG SHORT-TERM BANK LOANS (WORKING CAPITAL) OF BORROWERS INELIGIBLE FOR INTEREST RATE SUPPORTS IN CERTAIN BRANCHES AND DOMAINS
(To the Prime Minister's Decision No. 131/QD-TTg of January 23. 2009)

1. Mining industry.

2. Financial activities.

3. State management, security and defense, activities of Party and mass organizations, and compulsory social insurance.

4. Education and training.

5. Healthcare and social relief activities.

6. Cultural and sport activities.

7. Activities related to asset trading and consultancy services (except the construction of houses for low-income earners).

8. Activities serving individuals and the public (including the provision of loans via credit cards).

9. Household-based services.

10. Activities of international organizations.

11. Import of consumer goods.

12. Securities investment and trading.

13. Real estate trading in the form of purchase and sale of land use rights.-