State budget estimate of VND 40,000 billion to support interest rates for businesses, cooperatives and households?
Regulations on making state budget estimates in support of lending interest rates for businesses?
Pursuant to Clause 1, Article 7 of Decree 31/2022/ND-CP stipulates as follows:
“Article 7. Estimation and implementation of estimate and settlement of interest rate support
1. Estimating the state budget for interest rate support
a) The formulation of state budget estimates for interest rate subsidy shall comply with the provisions of the Law on State Budget, the Law on Public Investment, this Decree and relevant legal documents.
b) Within 15 days from the effective date of this Decree, commercial banks shall register interest rate support plans from the state budget for both 2022 and 2023 and detail each year according to the Form No. 01 in the Appendix issued together with this Decree, sent to the State Bank of Vietnam.
c) Within 20 days from the effective date of this Decree, the State Bank of Vietnam shall synthesize the interest rate support plan of commercial banks, ensuring that the total amount of VND 40,000 billion is within the scope of this Decree. detailed by each commercial bank and each year, and send it to the Ministry of Planning and Investment and the Ministry of Finance.
d) Based on the general plan of the State Bank of Vietnam, the Ministry of Planning and Investment shall assume the prime responsibility for reporting to the Government for submission to the National Assembly Standing Committee for permission to supplement the estimate of investment and development expenditures to the state budget. The State will provide interest rate support in 2022 and synthesize and arrange it in the state budget estimate in 2023 and submit it to the National Assembly for decision.”
Accordingly, the preparation of state budget estimates to support lending interest rates for enterprises, cooperatives and households shall comply with the provisions of law. Within 15 days from May 20, 2022, commercial banks shall register interest rate support plans from the state budget with the State Bank of Vietnam.
Within 20 days from May 20, 2022, the State Bank of Vietnam will summarize the interest rate support plan registered by commercial banks, but must ensure the capital level is 40,000 billion VND. After synthesizing the plan, it will be sent to the Ministry of Planning and Investment.
The Ministry of Planning and Investment shall report to the Government to submit to the Standing Committee of the National Assembly for permission to supplement the expenditure estimate to implement interest rate support in 2022 and summarize the estimate in 2023 and submit it to the National Assembly for decision.
State budget estimate of VND 40,000 billion to support interest rates for businesses, cooperatives and households?
Regulations on the implementation of state budget estimates to support lending interest rates for businesses, cooperatives and households?
Pursuant to Clause 2, Article 7 of Decree 31/2022/ND-CP stipulates as follows:
“Article 7. Estimation and implementation of estimate and settlement of interest rate support
..
2. Implementation of state budget estimates for interest rate support
a) Pursuant to the Resolution of the National Assembly Standing Committee supplementing the 2022 estimate, the Prime Minister decides to allocate capital from the central budget to supplement the 2022 public investment plan to the State Bank of Vietnam. The assignment of public investment plans in 2023 will comply with current regulations.
The State Bank of Vietnam shall announce the interest rate support limit for commercial banks and send it to the Ministry of Finance and the Ministry of Planning and Investment for coordination in implementation.
b) Before the 20th day of the first month of each quarter, the commercial bank shall send to the State Bank of Vietnam and the Ministry of Finance a dossier of request for prepayment of the interest rate support amount as prescribed in this Decree of the quarter. adjacent front; only dossiers of the fourth quarter of each year shall be sent before January 5 of the following year. Records include:
- A written request for prepayment of the interest rate support amount, clearly stating the amount of the commercial bank's interest rate support for customers in the quarter. commercial banks have supported interest rates for customers in the quarter, commercial banks' money-receiving accounts;
- Report on the implementation of interest rate support for customers of commercial banks using Form No. 02 in the Appendix issued with this Decree;
- A list of documents proving that the customer has received interest rate support in the quarter according to Form No. 03 in the Appendix issued with this Decree.
c) Within 10 working days from the date of receipt of the application for prepayment of the quarterly interest rate support amount from the commercial bank, the State bank of Vietnam shall give comments on the list of dossiers, the amount requested for prepayment by the commercial bank that does not exceed the notified interest rate support limit, shall be sent to the Ministry of Finance to request prepayment to the commercial bank. Particularly for the dossier of the fourth quarter of each year, the State Bank of Vietnam shall send comments to the Ministry of Finance within 05 working days from the date of receipt of the commercial bank's application.
d) Within 15 working days from the date of receipt of the request of the State Bank of Vietnam, the Ministry of Finance shall make advance payment to the commercial bank for the amount of interest support as prescribed in this Decree. in the form of payment orders and notify the State Bank of Vietnam for coordination in implementation.
đ) The total amount of advance payment to commercial banks as prescribed at Point d of this Clause in the budget year does not exceed the announced interest rate support limit in the year. By January 31, 2023, if the 2022 interest rate support estimate has not been used up, the source will be transferred to 2023 to continue implementing the interest rate support in accordance with the law.
e) During the implementation process, the State Bank of Vietnam considers adjusting the interest rate support limit between commercial banks when necessary, and sends it to the Ministry of Planning and Investment and the Ministry of Finance for coordination in implementation. .”
Thus, based on the Resolution of the National Assembly Standing Committee, the Prime Minister decided to allocate additional budget capital to implement the interest rate support program.
On the 20th day of the first month of each quarter, the commercial bank shall send the State Bank of Vietnam and the Ministry of Finance a dossier of request for payment of the supported amount. The prepayment amount is equal to 85% of the interest rate supported commercial bank amount.
Regulations on settlement of annual interest rate support?
Pursuant to Clause 3, Article 7 of Decree 31/2022/ND-CP stipulates as follows:
"Article 7. Estimation and implementation of estimate and settlement of interest rate support
...
3. Annual settlement of interest rate support
a) The commercial bank is responsible for making the annual settlement of interest rate support and making the interest rate support settlement dossier, in which the loans eligible for interest rate support in the settlement dossier must be correct for object, fully meeting the conditions for interest rate support as prescribed in this Decree, accurately determining the amount of interest rate support for each customer and the general summary of the whole bank, the amount of interest rate support for customers with full legal documents.
b) The settlement interest support amount is determined as follows:
- The actual interest rate support amount paid for a disbursement is calculated by the formula:
I = 2% x (DixTi)/365
In which: - I is the actual interest rate support amount paid for the disbursement;
- ∑(DixTi) is the sum of the products between the outstanding balance and the actual number of days the loan balance is supported with interest rate of the disbursement.
- The amount of interest support actually paid for a loan is the total amount of interest actually paid for all disbursements of that loan.
- The actual interest rate support amount requested to be paid by the state budget is the total amount of interest actually paid for all loans subject to the provisions of this Decree. The total amount of actual interest rate support requested by the state budget to be paid by commercial banks does not exceed VND 40,000 billion.”
As such, the commercial bank must make the annual settlement of interest rate support and make the final settlement documents. Interest-supported loans must be made to the right subjects. The total amount that commercial banks require the state budget to pay for interest-supported loans does not exceed VND 40,000 billion.
The above are some regulations on estimating and implementing estimates and settlement of interest rate support according to Decree 31/2022/ND-CP.
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