SBV to issue the detailed guidelines on implementation of the pm’s interest rate support policy.
On 03 February 2009, the State Bank of Vietnam (SBV) has issued Circular No. 02/2009/TT-NHNN (Circular 02) providing the detailed implementation of the interest rate support to individuals and enterprises borrowing loans from banks for trading and manufacturing purposes as provided for under Decision No. 31/QD-TTg (Decision 31) dated 23 January 2009 of the Prime Minister of Vietnam (PM).
According to Circular 02, individuals and enterprises who have short term VND loans (term of loan up to 12 months) with credit institutions, commercial banks (including foreign owned banks and branches of foreign banks in Vietnam) operating in Vietnam for trading and manufacturing purposes according to the loan agreements which are entered into and drawn down from 1 February to 31 December 2009 are eligible to this policy. Particularly, eligible individuals and enterprises shall be supported an anum interest rate of 4% of the outstanding loans within 08 months from the date of drawdown and the actual term of loan is from 01 February to 31 December 2009. When the term of collecting loan interests becomes due, the commercial banks shall directly deduct the amount of interests payable of customers which is equal to amount of loan interest entitled to the interest rate support. The SBV shall transfer the loan interests already used for interest rate support on the basis of the report on amount of interest rate support by commercial banks.
To be entitled to the interest rate support policy, the borrower, upon arising the first loan at the lending commercial banks within the time from 1 February to 31 December 2009, shall submit an application for the interest rate support to that commercial bank and request it to carry out the interest rate support policy. Commercial banks are required to implement the interest rate support in line with the provisions of Decision 31 and of Circular 02; to ensure the public, clear disclosure of the amount of interest rate support to borrowers.
Chairman of the BOM and the GD of commercial banks shall be responsible before the laws of Vietnam for implementation of the interest rate support policy not complying with the provisions of the applicable laws. With regards to the borrowers, if failing to use the loan funds for the right purpose, he shall not be entitled to the interest rate support and shall be required to refund the amount of previously supported loan interest to the commercial bank.
In addition, he shall also be responsible before the laws of Vietnam for his wrongful usage purpose of the loan. This interest rate support policy aims to reduce the cost of commodities and create new jobs in a move to alleviate the negative impact of the global recession.