03 Principles for Applying Domestic Financial Mechanisms for ODA Loans

08:36, 10/07/2024

On May 25, 2020, the Government of Vietnam issued Decree 56/2020/ND-CP on the management and use of official development assistance (ODA) and concessional loans from foreign donors.

Principles for applying domestic financial mechanisms to ODA loans and concessional loans are stipulated in Decree 56/2020/ND-CP as follows:

Domestic financial mechanism for ODA loans, 56/2020/ND-CP

Domestic financial mechanism for ODA loans, concessional loans (Illustrative image)

- For programs and projects under the expenditure responsibility of the central budget: Allocate the entire ODA loans and concessional foreign loans from the central budget.

- For investment programs and projects under the expenditure responsibility of the local budget: Re-borrow a part or the entire ODA loans and concessional foreign loans from the central budget in accordance with the law on re-lending of ODA loans and foreign concessional loans of the Government of Vietnam.

For programs and projects under the expenditure responsibility of the local budget using ODA loans and concessional foreign loans as the state’s contribution in public-private partnership (PPP) projects: Re-borrow the entire ODA loans and concessional foreign loans from the central budget in accordance with the law on re-lending of ODA loans and concessional foreign loans.

- For programs and projects that can recover all or part of the capital: Re-lend the entire or a part of the ODA loans and concessional foreign loans from the central budget in accordance with the law on re-lending of foreign loans of the Government of Vietnam.

Refer to other regulations in Decree 56/2020/ND-CP effective from May 25, 2020.

Thu Ba

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