DECISION

REGULATIONS ON SUBSIDIZED LOANS FOR AGRICULTURAL PRODUCTION AND PROCESSING PROJECTS IN POOR DISTRICTS AND DISTRICTS OF HIGH POVERTY RATE IN THE ADMINISTRATION DIVISION OF LAO CAI PROVINCE IN 2016 - 2020 PERIOD

THE PEOPLE’S COMMITTEE OF LAO CAI PROVINCE

Pursuant to the Law on Local Government Organization dated June 19, 2015;

Pursuant to the Law on Promulgation of Legislative Documents dated June 22, 2015;

Pursuant to the Law on State budget dated December 16, 2002;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Government’s Decree No. 55/2015/ND-CP dated June 09, 2015 on credit policies for development of agriculture and rural areas;

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Implementing the Prime Minister’s Decision No. 293/QD-TTg on the  purposeful supports from the Central Budget for 23 districts of high poverty rate which are eligible for infrastructure investment policies as prescribed in the Government’s Resolution No. 30a/2008/NQ-CP dated December 27, 2008 on quick and sustainable poverty reduction program for 62 poor districts;

Pursuant to the People’s Council’s Resolution No. 70/2016/NQ-HDND dated July 18, 2016 on subsidized loans for agricultural production and processing projects in poor districts and districts of high poverty rate in the administration division of Lao Cai Province in 2016 - 2020 period;

At the request of director of the Service of Finance in the Statement No. 655/TTr-STC dated August 31, 2016.

DECISION

Article 1. Promulgate regulations on subsidized loans for agricultural production and processing projects in poor districts and districts of high poverty rate in the administration division of Lao Cai Province in 2016 - 2020 period.

Article 2. This Decision takes effect since September 17, 2016.

Article 3. Chief officers of People’s committees of provinces; directors of the Service of Finance, Service of Planning and Investment, Service of Agriculture and Rural Development, Service of Labor, Invalids and Social Affairs; directors of State Treasuries, the State bank of Vietnam, Vietnam Bank for Social Policies and commercial banks of Lao Cai; presidents of the People’s committees of districts, cities; heads of relevant agencies, units, organizations and individuals shall be responsible for executing this Decision.

This Decision supersedes the People’s Committee of Lao Cai Province’s Decision No. 28/2015/QD-UBND dated June 22, 2015 promulgating regulations on subsidized loans for agricultural production and processing projects in poor districts and districts of high poverty rate in the administration division of Lao Cai Province./.

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PP THE PEOPLE’S COMMITTEE OF PROVINCE
PRESIDENT




Dang Xuan Phong

REGULATIONS

ON BANK SUBSIDIZED LOANS FOR AGRICULTURAL PRODUCTION AND PROCESSING PROJECTS IN POOR DISTRICTS AND DISTRICTS OF HIGH POVERTY RATE IN THE ADMINISTRATION DIVISION OF LAO CAI PROVINCE IN 2016 - 2020 PERIOD (Enclosed with the People’s Committee of Lao Cai Province’s Decision No. 96/2016/QD-UBND dated September 07, 2016)

Article 1. Scope and regulated entities

1. Governing scope:

a) This Decision stipulates entities eligible for subsidized loans; subsidy levels, methods and procedures; responsibility of banks and relevant agencies for the implementation of the policies on subsidized loans for agricultural production and processing projects as prescribed in Point b of this Clause in poor districts, districts of high poverty rate in Lao Cai Province including: Muong Khuong, Bac Ha, Si Ma Cai, Sa Pa, Bat Xat and Van Ban;

b) Projects eligible for subsidized loans as prescribed herein shall get approval from the People's Committee of the Province including following projects:

- Livestock production projects;

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- Projects to develop medicinal plants, safe vegetables, high-class flowers, temperate zone fruit trees, galangal trees;

- Projects to preliminarily process and store medicinal products, temperate zone vegetable, fruit products and enhance value thereof, projects to process vermicelli.

Above projects shall be situated within the area under agricultural production planning approved by competent authorities, otherwise they have to get approval from the People’s committee of province.

2. Regulated entities

a) Borrowers: Organizations, individuals and households whose projects are carried out in poor districts, districts of high poverty rate and eligible for subsidized loans as prescribed in Point b, Clause 1 of this Article;

b) Lenders: Vietnam Bank for Social Policies – Lao Cai Province’s Branch, branches of commercial banks in Lao Cai Province

c) State management agencies: The Service of Finance, the Service of Planning and Investment, the Service of Agriculture and Rural Development, the Service of Labor, Invalids and Social Affairs, the State Bank of Vietnam – Lao Cai Province’s Branch, People’s committees of districts and other relevant agencies, organizations.

Article 2. Loan amount, loan terms, loan interest rates and loan guarantee mechanism

1. Loan amount and loan terms

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2. Loan interest rates, ways of calculating loan interests and loan guarantee mechanism: As instructed in applicable regulations.

Article 3. Level of loan interest rate subsidy, terms of subsidized loans and sources of funding for grant of subsidized loans

1. Pursuant to Clause 3, Article 1 of the Lao Cai Province People’s Council’s Resolution No. 70/2016/NQ-HDND dated July 18, 2016, the subsidy shall be 100% of the interest rate imposed by lenders.  

2. Pursuant to Clause 4, Article 1 of the Lao Cai Province People’s Council’s Resolution No. 70/2016/NQ-HDND dated July 18, 2016, the loan term begins from the date of disbursement under the credit contract and ends on the date the debt is fully repaid and is not permitted to: The term of a subsidized loan shall start from the date of disbursement under the credit contract to the date the debt is paid off and is not permitted to:

a) Exceed 36 months since the date of initial disbursement for projects to develop livestock production, process livestock product, develop safe vegetables, high-class flowers, galangal trees, projects to preliminarily process and store medicinal products, temperate zone vegetable, fruit products and enhance value thereof, projects to process vermicelli.

b) Exceed 60 months since the date of the first disbursement for projects to develop medicinal plants and temperate zone fruit trees:

3. Sources of funding for grant of subsidized loans:

a) From the increase in the provincial government budget revenue and the decrease in expenditure (excluding 50% of the increase in revenue and 10% of the decrease in expenditure for salary reform);

b) From funding, entrustment by organizations and individuals according to laws.

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1. Methods:

All loan interests of projects shall be directly paid to lenders by the provincial government budget.

2. Procedures:

a) Applications for loans shall be submitted to lenders. An application shall include: Documents as requested by the lender (legal documents, project documents, loan guarantee documents …) and a request form for subsidized loans (See Form 01 enclosed herewith);

b) Upon receipt of the documents from the borrower, the lender shall carry out examination, decide whether to grant the loan and disburse it according to current credit mechanism;

c) On every fifth day of the following month, the lender shall compile a list of borrowers and projects eligible for and granted subsidized loans of the preceding month and send it to the Service of Finance (See Form 02 enclosed herewith);

d) On every 25^th of last month of each quarter, each lender shall make and send a consolidated report on demands for subsidized loans of projects in the current and next quarter to the Service of Finance (See Form 03 enclosed herewith). Based on such reports, the Service of Finance shall check, examine and transfer funding for grant of subsidized loans lenders;

dd) Lenders shall record funding for subsidized loans provided by the provincial government budget as well as reduction in interests receivable from borrowers according to current regulations;

e) At the end of each year, based on quarterly reports from lenders, funding provided by the Province' s People’s Council under the cost estimate allocation decision (Point a, Clause 6, Article 5 herein), the Service of Finance shall check and report the funding temporarily provided in the year to the People’s Committee of the Province for approval. The report must specify the funding provided in the year and funding needed;

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Article 5. Responsibility of relevant parties

1. The Service of Agriculture and Rural Development

a) Cooperate with the Service of Planning and Investment in conducting assessment of projects by specialty (taking responsibility for conducting assessment of eligibility for subsidized loans, professional technical norms) and carrying out agricultural development planning in the province;

b) Cooperate with People’s committees of districts, the Service of Planning and Investment in providing instructions to borrowers on acquisition of loans for projects eligible for subsidized loans by provincial government budget according to governing scope and entities as prescribed herein;

c) Preside over and cooperate with relevant agencies in organizing investigation and inspection of the implementation of the projects in the province;

d) Preside over and cooperate with the State Bank, the Service of Finance in annually reporting to the People’s Committee of the Province the implementation of the projects granted subsidized loans funded by the provincial government budget;

2. The Service of Planning and Investment

a) Preside over and cooperate with the Service of Agriculture and Rural Development, the Service of Finance, the Services of Labor, Invalids and Social Affairs in carrying out assessment and submission to the People’s Committee of the Province for approval of investment projects eligible for subsidized loans as prescribed herein;

b) Submit to the People’s Committee of the Province for approval for investment policies for the agriculture and rural development projects in poor districts and districts of high poverty rate eligible for subsidized loans according to the Law on Investment;

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a) Provide instructions for lenders on recording state-subsidized interests according to laws;

b) Establish inspectorates to inspect the grant and use of subsidized loans by lenders and borrowers according to current regulations;

4. Borrowers

a) Establish and submit investment projects to People's committees of districts for compilation, to the Service of Planning and Investment for assessment and submission to the People’s Committee of the Province for approval;

b) Deliver documents concerning projects on loan to lenders as prescribed in Clause 2, Article 4 herein;

c) Fulfill loan guarantee measures as requested by lenders;

d) Manage and use loans purposefully and within the scope and entities as prescribed; pay debts as scheduled;

5. Lenders

a) Perform assessment and make decisions on provision of loans with subsidized loans according to current credit mechanism and provisions as prescribed herein;

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c) Prepare statistical reports on subsidized loans as prescribed herein as foundations for inspection and supervision by competent state agencies; open accounts or apply appropriate management systems to separately record subsidized loans;

d) Make the report as prescribed in Clause 2, Article 4 herein to the Service of Finance, the Service of Agriculture and Rural Development and take the responsibility for accuracy and adequacy of reported figures;

dd) Retain documents concerning subsidized loans according to laws;

6. The Service of Finance

a) Based on the expenditures incurred in the year, make the report to the People's Committee of the Province for submission to the Province's People's Council for temporary allocation of funding (identical to the time of allocation of funding for the following year) for implementation of subsidized loans for agricultural production and processing projects in poor districts, districts of high poverty rate in the province in the following year;

b) Cooperate with the Service of Planning and Investment, the Service of Agriculture and Rural Development, the Service of Labor, Invalids and Social Affairs during the assessment of projects eligible for subsidized loans and submission to the People’s Committee of the Province for approval;

c) Check and temporarily transfer funding to lenders on a quarterly basis based on reports from lenders; Make checks and reports to the People’s Committee of the Province for provision of funding for subsidized loans in a timely and adequate manner to lenders as prescribed in Clause 2, Article 4 herein;

d) Preside over and cooperate with relevant agencies in implementing provisions as prescribed herein; compile and report funding for grant of subsidized loans on request;

dd) Make annual statements of funding for subsidized loans according to the Law on State Budget;

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a) Cooperate with the Service of Planning and Investment, the Service of Agriculture and Rural Development, the Service of Finance during the assessment of projects eligible for subsidized loans and submission to the People’s Committee of the Province for approval;

b) Cooperate with the State Bank of Vietnam – Lao Cai Branch and relevant agencies in inspecting the implementation of subsidized loans by lenders;

8. People’s committees of provinces

a) Provide instructions to organizations and individuals on the formulation and submission of agricultural production and processing projects to the Service of Planning and Investment, the Service of Agriculture and Rural Development, the Service of Labor, Invalids and Social Affairs for assessment and submission to the People's Committee of the Province for approval;

b) Speed up and inspect the development of projects in the district; Compile projects carried out by organizations, individuals and households in the district and make submission to the Service of Agriculture and Rural Development for reporting to the People’s Committee of the Province;

Article 6. Transitional provisions

Any project approved by competent authorities before August 01, 2016 and eligible for subsidized loans under the People’s Committee of the Province’s Decision No. 28/2015/QD-UBND dated June 22, 2015 shall continue to be eligible for subsidized loans under the Decision./.

Forms for reference: Form 01 - Request for subsidized loans

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REQUEST FOR SUBSIDIZED LOANS

Respectfully addressed to: …
(Name of lender)

Name of borrower: …

Address: …

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Phone number: … Facsimile: … Email: …

Name of representative of organization (if borrower is an organization): ...

Position: …

Pursuant to the People’s Council’s Resolution No. 70/2016/NQ-HDND dated July 18, 2016 on bank subsidized loans for agricultural production and processing projects in poor districts and districts of high poverty rate in the administration division of Lao Kai Province in 2016 - 2020 period;

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Pursuant to People’s Committee of Lao Cai Province’s Decision No. /QD-UBND dated …on granting approval for the project (name of project);

We have been granted the approval by the People’s Committee of the Province for the implementation of the project (name of project). This project is eligible for subsidized loans under the People’s Committee of the Province's Decision No. /2016/QD-UBND dated …

We would like to request the lender to grant a subsidized loan for the implementation of the project (name of project).

We shall be committed to complying with regulations on lending, subsidized loans and other commitments in the credit contract, using the loans within the scope and entities as prescribed, returning the subsidy immediately if the loan is misused, or used outside the scope and entities as stated in the credit contract and taking the liability for any act in violation of the credit contract.

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BORROWER (Signature, and stamp (if any))

Form 02 – REPORT ON BORROWERS AND PROJECTS ELIGIBLE FOR SUBSIDIZED LOANS

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No. …

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness

REPORT

Number of borrowers, projects eligible for subsidized loans under the People’s Committee of the Province’s Decision No. ........./2016/QD-UBND dated …

 … /201 …

No.

Name of eligible borrowers, projects

Project site

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Total investment (VND million)

Number of credit contract

Signing date

Amount of loan under credit contract (VND million)

Loan term (month)

Subsidy duration (month)

Outstanding debt at the time of reporting (VND million)

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PROJECT GROUP

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Project …

District …

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Livestock product processing projects

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Project …

District …

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III

Projects to develop medicinal plants, safe vegetables, high-class flowers, temperate zone fruit trees, galangal trees

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Project …

District …

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Projects to preliminarily process and store  medicinal products, temperate zone vegetable and fruit projects, process vermicelli 

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District …

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BORROWERS

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Organizations

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Company …

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Project …

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Cooperative…

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Project …

District …

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Householder Mr…

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Project …

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Mrs …

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Project …

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.......Dated …
LENDER …

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Prepared by

Controlled by

Director

Form 03 – Consolidated report on demands for subsidized loans

LENDER …

No. …

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness

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Necessary funding for implementation of the People’s Committee of the Province’s Decision No. ..../2016/QD-UBND for Quarter /201 … and estimated funding for next Quarter …/201

Unit: VND million

No.

Name of eligible borrowers, projects

Projects eligible for subsidized loans

Amount of interest that needs subsidizing for Quarter …/201 (current quarter)

Estimated amount of interest that needs subsidizing for Quarter …/201 (following quarter)

Notes

Project site

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Loan terms under credit contract (month)

Subsidy duration (month)

Outstanding debt at the time of reporting

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PROJECT GROUP

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Livestock production projects

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Project …

District …

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Livestock product processing projects

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Project …

District …

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III

Projects to develop medicinal plants, safe vegetables, high-class flowers, temperate zone fruit trees, galangal trees

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Project …

District …

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IV

Projects to preliminarily process and store  medicinal products, temperate zone vegetable and fruit projects, process vermicelli 

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Project …

District …

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BORROWERS

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Organizations

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Company …

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Cooperative …

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Individuals, households

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Householder Mr.…

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Project …

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Mrs …

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Project …

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.......Dated …
LENDER …

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Prepared by

Controlled by

Director

Form 04 – Report on final settlement of funding for grant of subsidized loans

LENDER …

No. …

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom - Happiness

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Final settlement of funding for grant of subsidized loans for agricultural production and processing projects under the People’s Committee of the Province No. ......./2016/QD-UBND dated …/2016

Year 201 …

Unit: VND million

No.

Name of eligible borrowers, projects

Projects eligible for subsidized loans

Funding provided by state budget for subsidized loans in a year

Amount of interest actually subsidized and accounted for in the year.

Notes

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Date of disbursement

Loan terms under credit contract (month)

Subsidy duration (month)

Outstanding debt on December 31, 201 …

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PROJECT GROUP

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Livestock production projects

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Project …

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Livestock product processing projects

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Project …

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Projects to develop medicinal plants, safe vegetables, high-class flowers, temperate zone fruit trees, galangal trees

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Project …

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Projects to preliminarily process and store  medicinal products, temperate zone vegetable and fruit projects, process vermicelli 

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Project …

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BORROWERS

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Organizations

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Company …

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Enterprise

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Cooperative …

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Project …

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Individuals, households

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Householder Mr.…

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Mrs …

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Prepared by

Controlled by

Director