What are details of Decision 10/2024/QD-TTg on credit for rural clean water supply and environmental sanitation in Vietnam?
What are details of Decision 10/2024/QD-TTg on credit for rural clean water supply and environmental sanitation in Vietnam?
On July 15, 2024, the Prime Minister of the Government of Vietnam issued Decision 10/2024/QD-TTg on credit for rural clean water supply and environmental sanitation in Vietnam.
This decision stipulates policies on credit for clean water supply and rural environmental sanitation to implement the National Strategy on clean water supply and rural sanitation until 2030, with a vision to 2045, according to Decision 1978/QD-TTg in 2021 of the Prime Minister of the Government of Vietnam, for the purposes of lending for new construction, upgrading, renovation, and repair of two types of facilities, including:
- Household-scale water supply facilities.
- Household environmental sanitation facilities.
Applicable Subjects
- Vietnam Bank for Social Policies.
- Households defined in Clause 1, Article 4 of Decision 10/2024/QD-TTg.
- Other relevant agencies, organizations, and individuals.
What are details of Decision 10/2024/QD-TTg on credit for rural clean water supply and environmental sanitation in Vietnam? (Image from the Internet)
Credit for rural clean water supply and environmental sanitation in Vietnam
According to Article 14 of Decision 10/2024/QD-TTg, the implementation of credit for rural water supply and environmental sanitation is as follows:
- Borrowers are responsible for using the borrowed capital for the correct purposes and for timely and full repayment of loans to the Vietnam Bank for Social Policies.
- The Ministry of Agriculture and Rural Development shall take the lead, coordinate with the Vietnam Bank for Social Policies and related agencies in organizing, implementing, and reporting to the Prime Minister of the Government of Vietnam on the results of implementing Decision 10/2024/QD-TTg; propose solutions to arising problems and obstacles during implementation, and amend and supplement Decision 10/2024/QD-TTg (if necessary).
- Provincial People's Committees and centrally-affiliated cities
+ Annually, consider allocating local budget capital entrusted through the Vietnam Bank for Social Policies for lending in accordance with the law;
+ Direct relevant departments, agencies, and units to submit to competent authorities for approval the annual allocation of local budget entrusted through the Vietnam Bank for Social Policies for lending;
+ Direct the People's Committees at the commune level to verify and confirm the beneficiaries and conditions as stipulated in Article 4 of Decision 10/2024/QD-TTg;
+ Coordinate with the Vietnam Fatherland Front, political-social organizations, and the Vietnam Bank for Social Policies to disseminate the policies, organize, and supervise the implementation of Decision 10/2024/QD-TTg.
- Vietnam Bank for Social Policies
+ Provide guidance on the contents stipulated in Article 13 of Decision 10/2024/QD-TTg;
+ Manage, mobilize, and use the loan capital; supervise the borrowing, capital usage, and repayment process of customers to ensure that the loan is used effectively and for the right purposes as regulated in Decision 10/2024/QD-TTg;
+ Coordinate with relevant ministries and central authorities, reporting to competent authorities to promptly address any difficulties or obstacles encountered during the loan implementation process as per Decision 10/2024/QD-TTg;
+ Work with the Vietnam Fatherland Front and political-social organizations to disseminate policies, organize, and implement according to the regulations of Decision 10/2024/QD-TTg.
- Ministries, ministerial-level agencies, and agencies under the Government of Vietnam, following their functions, tasks, and authority, are responsible for cooperating with the Ministry of Agriculture and Rural Development and the Vietnam Bank for Social Policies during the implementation process of Decision 10/2024/QD-TTg.
Subjects and Conditions for loans for clean water from September 2, 2024:
Based on Article 4 of Decision 10/2024/QD-TTg, the subjects and conditions for loans for clean water supply and rural environmental sanitation in Vietnam are stipulated as follows:
Subjects and Conditions for loans
1. Borrowers: Households residing in rural areas where they have permanent or temporary registration (hereinafter referred to as customers).
2. Conditions for borrowing capital: Customers residing in rural areas without domestic water facilities, household sanitation works, or having such facilities which are damaged and need new construction, upgrading, renovation, or repair.
Thus, the subjects and conditions for borrowing clean water loans effective from September 2, 2024, are as follows:
- Borrowers: Households residing in rural areas where they have permanent or temporary registration (hereinafter referred to as customers).
- Conditions for borrowing capital: Customers residing in rural areas without domestic water facilities, household sanitation works, or having such facilities which are damaged and need new construction, upgrading, renovation, or repair.
What are regulations on Loan Amount and Interest Rates for Clean Water Loans in Vietnam in 2024?
According to Article 6 of Decision 10/2024/QD-TTg, the loan limits are stipulated as follows:
Loan Amount
1. The maximum loan amount is 25 million VND per type of facility per customer.
2. Customers can borrow capital to invest in new construction, upgrading, renovation, or repair of two types of household water and environmental sanitation facilities, but the total outstanding debt for each type of facility must not exceed the maximum loan amount for each type of facility.
Simultaneously, based on Article 9 of Decision 10/2024/QD-TTg, the loan interest rates are defined as follows:
Loan Interest Rates
1. The loan interest rate is 9.0% per year.
2. The overdue debt interest rate is 130% of the loan interest rate.
Thus, as of September 2, 2024, the loan amounts are as follows:
- The maximum loan amount is 25 million VND per type of facility per customer.
- Customers can borrow capital to invest in new construction, upgrading, renovation, or repair of two types of household water and environmental sanitation facilities, but the total outstanding debt for each type of facility must not exceed the maximum loan amount for each type of facility.
The loan interest rates for clean water loans in 2024 (effective from September 2, 2024) are as follows:
- The loan interest rate is 9.0% per year.
- The overdue debt interest rate is 130% of the loan interest rate.
Note:
The loan term is negotiated between the Vietnam Bank for Social Policies and the customer, but it is a maximum of 5 years (60 months).
The lending and repayment currency is Vietnamese Dong (VND).
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