Who will receive 2% interest rate support in Vietnam for loans at the Bank for Social Policies?

Main Content

• Interest rate support in Vietnam for loans at the Vietnam Bank for Social Policies in terms of fiscal and monetary policies to support the Socio-Economic Development and Recovery Program?
• Who is entitled to interest rate support for loans at the Bank for Social Policies?
• What is the principle of interest rate support in Vietnam for loans at the Bank for Social Policies?

Interest rate support in Vietnam for loans at the Vietnam Bank for Social Policies in terms of fiscal and monetary policies to support the Socio-Economic Development and Recovery Program?

In Article 3 of Resolution 43/2022/QH15 stipulating fiscal and monetary policies to support the Socio-economic Recovery and Development Program promulgated by the National Assembly as follows:

"Article 3. Support policies Socio-economic recovery and development program

1. Fiscal policy:

1.1 Tax exemption and reduction policy:

a) A 2% reduction in value-added tax rate in 2022, applicable to groups goods and services are subject to the value-added tax rate of 10% (remaining 8%), except for some of the following groups of goods and services: telecommunications, information technology, financial activities, and banking , securities, insurance, real estate trading, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to excise tax;

b) Allowing to be included in deductible expenses when determining corporate income taxable income for support and sponsorship expenses of enterprises or organizations anti-epidemic activities COVID-19 in Vietnam for the tax year 2022.

1.2. Development investment policy:

Increase spending on development investment from the state budget up to 176 trillion VND, concentrated in the two years 2022 and 2023, including:

a) Regarding health:

Allocation up to 14 thousand billion to invest in building, renovating, upgrading and modernizing the grassroots health system, preventive medicine, regional disease control centers, improving the hospital's capacity for disease prevention and control and central hospitals in association with training and improving the quality of human resources in the health sector, domestic production of vaccines and drugs to treat COVID-19;

b) Regarding social security, labor and employment:

- Grant the Bank for Social Policies a maximum of 5 trillion VND, including interest compensation and management fee of 2 trillion VND to implement policies for social welfare. preferential loans under the Program; maximum interest rate support of 3 trillion dong for borrowers under policy credit programs with current lending interest rates above 6%/year;

- Invest in building, renovating, upgrading, expanding and modernizing social assistance, training, vocational training and job creation establishments, up to VND 3.15 trillion;

c) Regarding support for enterprises, cooperatives and business households:

- Interest rate support (2%/year) up to VND 40 trillion through the system of commercial banks for a number of important industries and fields. important, enterprises, cooperatives and business households have the ability to repay debts and recover; loans to renovate old apartments, build social houses, houses for workers to buy, rent and hire-purchase;

- Provide charter capital for the Tourism Development Support Fund up to 300 billion VND;

d) Regarding investment and development of infrastructure:

Up to 113.55 trillion VND of investment capital from the state budget shall be added to develop infrastructure: traffic, information technology, digital transformation, preventing and combating riverbank and coastal erosion, ensuring the safety of water reservoirs, adapting to climate change, and overcoming consequences of natural disasters;

dd) The selection and allocation of capital for projects under the Program must ensure the disbursement of the Program's capital in 2022 and 2023, and comply with the following principles and criteria:

- Prioritize capital allocation for national important projects, projects in the list of Medium-Term Public Investment Plans for the period 2021 - 2025 are being implemented and are likely to be completed soon but have not yet been allocated capital or have not yet been allocated. enough capital;

- In case of allocating capital for projects outside the list of Medium-term Public Investment Plan for the 2021 - 2025 period: only for important, urgent, spillover effects, capable of solving projects. quickly and immediately absorbed into the economy, in line with the planning, using capital effectively, ensuring the ability to balance capital to complete the project in the period of 2022 - 2025; for a number of new projects of great significance to socio-economic development, priority is given to support for site clearance;

- Projects must ensure adequate investment procedures as prescribed;

- Ensuring publicity, transparency, fairness and harmony among regions, regions, localities and domains.

1.3. Other fiscal policies:

a) Housing rent support for employees who have an employment relationship, are renting, staying in, and working in industrial parks, export processing zones, key economic areas (using using about 6.6 trillion VND from the source of revenue increase and savings in the central budget in 2021);

b) Increase the Government guarantee limit for domestically issued bonds to the Social Policy Bank to a maximum of VND 38.4 trillion to provide loans to support job creation; student; non-public preschool and primary schools; individuals borrow to buy, rent to buy social houses, build new or renovate and repair houses according to policies on social housing; implement the National Target Program on socio-economic development in ethnic minority and mountainous areas for the period of 2021 - 2030.

2. Monetary policy:

a) Synchronously and flexibly administering public services monetary policy tools to contribute to maintaining macroeconomic stability, controlling inflation, ensuring the safety of the credit institution system, actively supporting socio-economic recovery and development; research to stabilize the maximum ratio of short-term capital for medium and long-term loans, reasonably calculate the required reserve ratio, conduct open market operations, refinance, direct credit institutions continue to reduce operating costs to strive to reduce lending interest rates by about 0.5% - 1% in 2 years 2022 and 2023, especially for priority sectors;

b) Continue to restructure the repayment term and maintain the same debt group, exempt and reduce loan interest for customers affected by the COVID-19 epidemic, closely monitor economic developments and the money market for solutions. appropriate measures to support businesses and people, and at the same time ensure the safe operation of the system of credit institutions;

c) Appropriate liquidity regulation, creating conditions to speed up disbursement for beneficiaries of interest rate support package;

d) Reasonable monetary regulation, closely coordinating with fiscal policy, creating favorable conditions for the issuance of Government bonds and for credit institutions to continue investing in Government bonds;

dd) Use up to VND 46 trillion from other lawful financial sources to import vaccines, therapeutic drugs and medical equipment and supplies for COVID-19 prevention and control in case of necessity. ;

e) Continue to refinance the Bank for Social Policies to loan the employer to pay the stoppage salary, pay the salary to restore production to the employees, ensure the feasibility and organize the rapid implementation of the project. In reality. Balance the monetary solution to support the Program with the overall plan to restructure specially controlled banks.

3. Other policies:

Applying other policies to implement the Focus Program in 2022 and 2023, including:

a) Using about 5 trillion VND from the Vietnam Public Utilities Telecommunication Service Fund to develop develop telecommunications and internet infrastructure, of which VND 1 trillion is used to equip tablets to implement the program "Waves and computers for children";

b) Solve problems in regulations on spending and management of the enterprise's Science and Technology Development Fund; using about 5 trillion dong for technological innovation, technology incubation, science and technology business incubation, commercialization of scientific research and technological development results; decoding technology;technological innovation, directly serving production and business activities of enterprises."

Who will receive 2% interest rate support in Vietnam for loans at the Bank for Social Policies?

Who is entitled to interest rate support for loans at the Bank for Social Policies?

for According to Article 2 of Decree 36/2022/ND-CP , the subjects of interest rate support are as follows:

- Borrowers of the Bank for Social Policies (including both organizations and individuals) have loans that meet fully meet the conditions for the state budget's interest rate support as prescribed in this Decree

What is the principle of interest rate support in Vietnam for loans at the Bank for Social Policies?

Principles Decree 36/2022/ND-CP stipulates the principles of interest rate support in Vietnam from the Bank for Social Policies as follows:

"Article 3. Principles of interest rate

support 1. Interest rate support guarantees public disclosure, transparency, right subjects, right purposes, avoiding policy profiteering

. interest rate for customers The total capital to support the maximum interest rate is 3 trillion VND

3. The Bank for Social Policies provides interest rate support in accordance with regulations, creating favorable conditions for customers

4. No interest rate support is available for overdue or extended debt balances."

Thus, for overdue or extended debt balances, interest rates will not be supported in Vietnam for loans at the Bank for Social Policies.