SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
Hanoi, April 17, 2009
ON GIVING INTEREST RATE SUPPORT TO LOANS FOR PROCUREMENT OF MACHINE, EQUIPMENTS, MATERIALS TO SERVE AGRICULTURAL PRODUCTION AND MATERIALS FOR BUILDING DWELLING HOUSES IN RURAL AREAS
PRIME MINISTER OF GOVERNMENT
- Pursuant to the Law on Government’s Organization dated 25 December 2001;
- Pursuant to Resolution No. 12/NQ-CP dated 6 April 2009 of the Government on building the mechanism, policy on giving support to subjects in rural areas to procure machines, equipments, materials for agricultural production;
- In consideration of proposals of Ministers of Industry and Trade, Agriculture and Rural Development, Finance and the Governor of the State Bank of Vietnam,
Article 1. The State shall give interest rate support to short, medium term VND loans by organizations, individuals to procure machines, equipments, facilities, materials for agricultural production and materials for building dwelling houses in rural areas.
Article 2. Subjects and scope of application
1. State owned commercial banks, joint stock commercial banks, joint venture banks, foreign banks’ branches operating in Vietnam, 100% foreign owned banks, finance companies and Central People’s Credit Fund (hereinafter referred to as commercial banks).
2. VND loans by organizations, individuals for procurement of machines, equipments, facilities, materials for agricultural production and procurement of construction materials in rural areas, except for loans which have been entitled to interest rate support under provisions in the Decision No. 131/QD-TTg dated 23 January 2009 of Prime Minister and the Decision No. 443//QD-TTg dated 4 April 2009 of Prime Minister.
Article 3. Goods to be produced domestically shall be entitled to interest rate support:
1. Machinery products, mechanical equipments, facilities to serve agricultural production and processing:
a. Internal combustion engines: small engines with less than 30CV, hydraulic engine with less than 80CV;
b. Combine harvester;
c. Tractor, plough, ripper, earth-working machine;
d. Reaping machine, thresher, agricultural product dryer, rice mill, water pump, electrical generator, tea leaf tumbling machine, corn sheller/gin, seed drill;
dd. Oxygen aerator for aquaculture, motor boat, canoe of all kinds;
e. Lawn mower, lawn cutter, mill, mixer, pelleter, performing machine of food for cattle and fowls, milking machine, incubator of fowls;
g. Light lorry,
h. Personal computer
2. Materials for agricultural production
a. Chemical fertilizer of all kinds
3. Major construction materials for building dwelling houses in rural areas.
Article 4. Principles of lending and giving interest rate support and conditions for loan
1. Commercial banks shall provide loan under the normal credit mechanism; carry out the interest rate support in accordance with provisions in this Decision and guidance of the State Bank of Vietnam; deduct amount of supported interests from the amount of interests payable for borrowing organizations, individuals upon the maturity of loan interest collection; not be authorized to refuse interest rate support if the loan is entitled to interest rate support.
2. Conditions for loan in respect of borrowing organizations, individuals:
a. Being a subject stipulated in Article 1 and goods stipulated in Article 3 of this Decision.
b. Having legal residence address and being certified by People’s Committee of district, ward, townlet as direct producer (not buying for selling again)
c. Availability of borrowing contract with commercial bank in accordance with applicable provisions.