On March 31st, 2017, the Government has issued Decree No.32/2017 / ND-CP on State investment credit replacing those of No.75/2011 / ND-CP dated August 30th, 2011 on State investment credit and export credit and of No. 54/2013 / ND-CP dated May the 2nd, 2013 and Decree No. 133/2013 / ND-CP dated October 17th , 2013 supplementing a number of articles of Decree 75/2011 / ND-CP. The new decree will be effective on May 15th, 2017
The new decree specifies new conditions and terms related to the the applicants, loan conditions and lending interest rates of state investment credit. The eligible applicants are investors having investment projects in sectors and area as listed in this Decree excluding those having been entitled to preferential credit from other State financial institutions.
Applicants to state investment credit must fully meet the following conditions:
1. Being eligible applicants as regulated in this Decree;
2. Being legal entity with full capacity and having completed investment procedures required by law;
3. Having investment projects appraised to be effective by Vietnam Development Bank and evaluated as bankable;
4. Having at least 20% of equity participation in the project, the specific percentage shall be considered and decided by Vietnam Development Bank, based on the financial capability of the investors and debt repayment plan, except special cases decided by the Prime Minister;
5. Providing loan security in compliance with this Decree and the Law.
6. Do not have bad debts at other credit institutions at the time of project appraisal by Vietnam Development Bank;
7. Having loan security assets insured at an insurance company which operates lawfully in Vietnam;
8. Having book account kept and annual financial report audited in accordance with the law.
The maximum loan maturity shall not exceed 15 years to group A projects
Loan amount does not exceed 70% of the total investment cost of the project (not including working capital).
The loan maturity is determined based on the project's repayment ability and investor’s solvency and business sector operations, but not more than 12 years, special case up to 15 years with projects of group A.
The State interest rate is calculated as the weighted average rate of the bidding rates of Vietnam Development Bank’s government-backed bonds of 5 years issued within one year period prior to the determined interest, plus VDB’s expenses and provision./.