Effective date: May 20, 2022
Main contents:
Rate of interest subsidies shall be 2%/year of the outstanding debt. Loans benefiting from interest rate subsidies must be granted during the periods starting from the date on which the loan is disbursed to the date on which the borrowers have paid all principal loans and/or interest as per agreements between commercial banks and the borrowers, in line with the announced funding sources for interest rate subsidies, but not later than December 31, 2023.
At the end of each interest payment period, commercial banks shall offset interest rate subsidies against borrower’s loan interest in accordance with guidelines of State Bank of Vietnam.
Eligibility for interest subsidies:
- Borrowers that wish to receive interest subsidies and satisfy loan conditions in accordance with prevailing laws on lending operation of credit institutions, foreign bank branches to borrowers.
- Loans benefiting from interest subsidies must be in VND, must have their lending and disbursement agreements signed in the period from January 1, 2022 to December 31, 2023, the loans must be used for the proper purposes and are not benefiting from interest subsidies provided by state budget via any other policy.
- A loan shall cease to benefit from interest subsidies when:
- Loans with overdue principals and/or deferred interest payments are not benefiting from interest subsidies for the payment obligation of interest which is due in the period in which overdue principals and/or deferred interest payments occur. Loans shall only be eligible for interest subsidies again for subsequent due interest payment after the borrowers have paid all overdue principals and/or deferred interest payments.
- The loan is deferred without benefiting from interest subsidies for the deferred period.