According to the new decree, aqua culture companies for export in needs of fund to purchase breeding food will be eligible to short term export credit.
Eligible applicants shall have direct export contract or sale contract with processing aquatic products companies for export; have effective plan on aquatic cultivation in service for export, have loan application appraised and approved by the Vietnam Development Bank; have full legal capacity and civil act capacity
Besides, companies borrowers have to implement fully provisions on loan securities as prescribed by current law and regulations; have bought insurance at an legally operating insurer in Vietnam for asset generated from loan proceeds for the loan duration.
Borrowers shall have the bookkeeping and financial report in accordance with law. Their annual financial statements must be audited by independent audit agencies
The new decree also mentioned that maximum loan amount is 85% of the total need for the food breeding purchase plan. This later one is appraised and approved by VDB and. A single borrower’s loan amount shall be less than 15% of the existing VDB chartered capital.
Loan tenor is defined in accordance with the repayment capacity suited to the plan of breading of to be exported aquatic product but not exceeds 12 months. This breeding plan shall be appraised and approved by VDB.
Particularly, Decree No 54/2013/NĐ-CP has supplemented the clause 27a of Decree Decree No. 75/2011/ND-CP related to debt repayment terms adjustment. Namely, state investment credit maturity can be adjusted to 15 years (actual maximum tenor of investment credit of 15 years) for projects which are in sectors such as electricity, cement, steel production, water supply, environment and which shall meet two following conditions:
1- Belonging to groups A and B.
2- Project owners have financial difficulties: have loss in 2011 and 2012; fail to make repayment to VDB in accordance with signed credit contract.
For export credit financing vegetables, fruits, aqua products export, the repayment term adjustment is maximum 36 months (maximum loan maturity of 36 month). Companies enjoying this adjustment are those which are in lost during 2011, 2012 and failed to make repayment to VDB in accordance signed contracts
The new decree has taken effect since May 22, 2013./.
Source: VDB