Interest rate support in Vietnam at 2% from January 1, 2022 to December 31, 2023 for loans to support the Socio-Economic Development and Recovery Program?
- What is the target of interest rate support in Vietnam for fiscal and monetary policy loans to support the Socio-Economic Development and Recovery Program?
- When is the interest rate support in Vietnam, how much is the interest rate support in Vietnam for the loan?
- How is the source of loan funds for interest rate support in Vietnam and the management fee regulated?
What is the target of interest rate support in Vietnam for fiscal and monetary policy loans to support the Socio-Economic Development and Recovery Program?
According to Article 2 Resolution 43/2022/QH15 stipulates the goals and targets of interest rate support in Vietnam for loans at the social policy bank as follows:
"Article 2. Objectives and targets
1. Recovery , rapidly develop production and business activities, promote growth drivers, prioritize a number of important industries and fields, strive to achieve the goal of the period 2021 - 2025: average GDP growth 6, 5 - 7%/year, the public debt target is below the warning level allowed by the National Assembly in Resolution No. 23/2021/QH15, the unemployment rate in urban areas is below 4%; maintaining macroeconomic stability , ensuring major balances in the medium and long term
2. Reducing costs, supporting cash flow, ensuring proactiveness, creating favorable conditions for businesses, economic organizations and people
3. Effectively prevent and control the COVID-19 epidemic; ensure social security and people's lives, especially workers, the poor, the disadvantaged, those heavily affected by the epidemic; ensure national security room, security, social order and safety."
Interest rate support in Vietnam at 2% from January 1, 2022 to December 31, 2023 for loans to support the Socio-Economic Development and Recovery Program?
When is the interest rate support in Vietnam, how much is the interest rate support in Vietnam for the loan?
According to Article 5 Decree 36/2022/ND-CP on fiscal and monetary policies to support interest rates in Vietnam for loans at banks for social policies, the program of socio-economic recovery and developmenttime for implementation of the support and the level of support is as follows:
"Article 5. Time for interest rate support, loan period for interest rate support, interest rate support and interest rate support amount
1. Duration The period for implementation of interest rate support is from January 1, 2022 to December 31, 2023 or when the Bank for Social Policies announces the end of interest rate support as prescribed at Point g, Clause 2, Article 10. This Decree depends on which time comes first
2. The loan period eligible for interest rate support is determined from the time of loan disbursement to the time when the customer pays off the principal but not outside of the support implementation period.Interest
rate support for borrowers is 2%/year calculated on loan balance of disbursements disbursed during the period of interest rate support and period. The loan period is supported with interest rates.
4. The actual amount of interest rate support for a loan is determined according to the provisions of Point b, Clause 3, Article 7 of this Decree."
Thus, the duration of interest rate support for loans at banks social policy products from January 1, 2022 to December 31, 2023 and support interest rates at 2%/year
How is the source of loan funds for interest rate support in Vietnam and the management fee regulated?
According to Article Decree 36/2022/ND-CP on fiscal and monetary policies to support the socio-economic recovery and development program stipulates:
"Article 8. Loan capital sources and compensation for interest rates and management fees
1. Loan capital sources
a) The Social Policy Bank may issue government-guaranteed bonds to lend for preferential lending policies according to the provisions of Item b, Point 1.3, Clause 1, Article 3 of the Resolution No. 43/2022/QH15;
b) The maximum limit for issuance of Government-guaranteed bonds for lending for preferential lending policies under Resolution No. 43/2022/QH15 is up to 38.4 trillion VND. and does not exceed the total credit balance of preferential lending policies according to Resolution No. 43/2022/QH15 at the end of the implementation of Resolution No. 43/2022/QH15 plus the outstanding balance calculated on the total outstanding credit balance. The ratio of cash balance is determined according to the maximum ratio of cash balance and deposits at other credit institutions to ensure solvency and payment when determining the amount of compensation for the difference. interest rates and management fees managed in accordance with the regulations on financial management of the Bank for Social Policies;
c) The capital source of government-guaranteed bonds specified in this Clause shall be included in the total capital of the Bank for Social Policies and accounted for, managed and used in accordance with the Bank's financial management regulations. Social policies;
d) During the period when the bond capital has not been issued or has not been issued sufficiently, the Bank for Social Policies may use the Bank's lawful capital sources to implement preferential lending policies. according to Resolution No. 43/2022/QH15.
2. Compensation for interest rates and management fees
a) The Social Policy Bank is provided with interest rate compensation and management fees from the State budget when implementing preferential lending policies according to Resolution No. 43/2022/QH15 according to the mechanism of compensation for the difference in interest rates and management fees when lending to the poor and other policy beneficiaries specified in the financial management regulations of the Bank for Social Policies;
b) Funds for subsidizing interest rates and management fees
- Funds for subsidizing interest rates and management fees in the period of 2022 - 2023 to implement preferential lending policies according to Resolution No. 43/2022/QH15 are the main sources of funding. 2 trillion dong specified in Item b, Point 1.2, Clause 1, Article 3 of Resolution No. 43/2022/QH15;
- Funds to compensate interest rates and management fees after 2023 for outstanding loans of preferential lending policies according to Resolution No. 43/2022/QH15 are arranged from public investment capital in accordance with the Banking Law State books, Law on Public Investment and guiding documents (if any)."
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