06 principles for interest rate support for implementation of passenger transport projects in Vietnam

Interest rate support for organizations or individuals obtaining borrowed funds from credit institutions for implementation of transport vehicle and infrastructure investment projects in the public passenger bus service sector in accordance with Clause 3 Article 4, Clause 3 Article 5 of the Prime Minister’s Decision No. 13/2015/QD-TTG is conducted according to the principles specified in Circular No. 02/2016/TT-BTC of the Ministry of Finance of Vietnam, specifically as follows:

- The local government’s budget shall provide loan interest rate support for project owners qualifying for interest rate support, specified in Clause 1 Article 2 of Circular No. 02/2016/TT-BTC, which is applicable to the amount of loans determined on the date of consideration of interest rate support, and to loan limits eligible for interest rate support, in accordance with regulations set out by the People’s Committees of centrally-affiliated cities and provinces (hereinafter referred to as provincial People’s Committee).

- The project shall be entitled to interest rate support under Decision No. 13/2015/QD-TTG and the instructions of this Circular only if they take out credit institutions’ loans to finance their transport vehicle and infrastructure investment projects in the public passenger bus service sector. A project owner shall not be entitled to such support if their loans received from credit institutions are used to finance projects other than those stated above.

- A project owner shall only be entitled to support for the interest rate imposed on borrowed funds which are disbursed from July 1, 2015 (on the date of entry into force of Decision No. 13/2015/QD-TTG) in order to develop and implement projects defined in Clause 3 Article 4, Clause 3 Article 5 of Decision No. 13/2015/QD-TTG which are on the list of projects qualifying for support in accordance with a Decision granted by the provincial People’s Committee.

- Where loans (including principal and interest) are subject to late repayments, or allowed for debt rescheduling, they are not eligible for interest rate support during the period of late repayment or debt rescheduling. Where a project owner has managed to repay its loans subject to late repayments and keep up with its subsequent payment due dates, it shall be eligible for interest rate support under the provisions of Decision No. 13/2015/QD-TTG and the instructions set out herein.

- Where there are various support policies from different programs or projects applied to transport vehicle and infrastructure investments for the public passenger bus service sector, a project owner may choose the most preferential support policies.

- The validity period of interest rate support shall be decided by the provincial People's Committee, but shall not exceed the actual loan term of specific loans.

View details at Circular No. 02/2016/TT-BTC of the Ministry of Finance of Vietnam, effective from January 20, 2016.

Thu Ba

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