The State Bank of Vietnam issued Decision No.813/NHNN-NHNN (Decision 813) dated April 24, 2017 on specific lending program to encourage the development of high tech and clean agriculture in line with Resolution No.30/NQ-CP dated March 07, 2017 of the Government.
According to Decision 813, the implementers of the program included (1) legal entities and individuals who are demanding on borrowing capital to conduct projects and plans of agricultural production and business applied high technology and clean technology in line with the defining categories stipulated in Decision No.738/QĐ-BNN-KHCN dated March 14, 2017 of Ministry of Agriculture and rural development, and (2) commercial banks that are established and operating in line with Law on credit institutions.
The commercial banks lend to customers who have borrowing demand of short, medium and long terms in Vietnamese Dong with interest rates lower than the rate of ordinary loans by from 0.5 to 1.5% p.a of the same lending terms in line with the regulations of the Circular No.39/2016/TT-NHNN of the SBV.
The resources for lending allocated by the commercial banks are in accordance with the resource mobilized from the market; the amount of loans are defined on the basis of the negotiation between commercial banks and customers in line with the regulation of Article 12 of Circular No.39/2016/TT-NHNN of the SBV.
For collateral pledging: The commercial banks and customers shall discuss and agree on appropriate methods of pledging to secure repayment of loans in line with applicable laws.
The decision also stipulates the structure and mature of repayment and new lending. In the case that customers facing difficulties in refunding the loans due to the objective reasons, the commercial banks can proactively review to restructure the terms of repayment that are appropriate with payment ability of the customers.
Concurrently, the commercial banks depend on applicable regulations and financial capacity to apply several supportive measures including exemption, reducing the interest rates; extending time for payment of interest rates…)
The decision stipulates the rights and responsibilities of the customers and commercial banks, and the entities of the SBV in order to effectively implement Decision 813.
For those customers who are the implementer and beneficiaries of Credit Policy serving the agricultural and rural development under Degree No.55/2015/NĐ-CP will be concurrently benefited the policy of Degree No. 55/2015/NĐ-CP and the regulations of this decision.
The SBV calls on commercial banks to allocate the sufficient resources to invest in effective projects applied high tech and clean agricultural production methods by reducing operational costs for the aim of reducing lending interest rates; setting up feasible plans of implementation and guiding the entire system of each commercial bank to decisively conduct this Decision. The commercial banks are also required to accelerate the communication on lending policy to strongly develop high tech and clean agriculture; to create favorable conditions for customers to access bank loans in transparent and public manner, and promptly report to the SBV via Credit Department of the SBV all difficulties and issues arising during the implementation process of lending policy issued by Decision 813 of the SBV.
The Decision takes effect from the date of signing and will cease to be effective only when the SBV replaces it by the other document.
VMH