07 Conditions for Re-lending of Russian Loans in the Nuclear Power Plant Project

The conditions for on-lending applicable to the Russian Federation's credit under the Credit Agreement for the construction of Ninh Thuan 1 Nuclear Power Plant are stipulated in Article 4 of Circular 26/2013/TT-BTC, specifically as follows:

Illustration (source: internet)

- Loan amount: according to the credit limit specified in the Credit Agreement signed between the Government of the Russian Federation and the Government of Vietnam. The actual loan amount is the total amount disbursed and incurred as debt with the Russian Federation.- Disbursement period: from 2014 until the end of 2021.- On-lending currency and debt collection: US Dollar (USD). In cases where the on-lending agency is Vietnam Electricity (EVN) and repayment is made in Vietnamese Dong, the USD selling exchange rate as announced by the servicing bank, Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank), at the time of debt collection will apply.- On-lending period: 29 years, including 8 years of grace from the first disbursement date of the credit, but principal repayment starts no later than March 15, 2022, with repayments twice a year on March 5 and September 5.- On-lending interest rate: specified in the on-lending authorization contract.- Penalty interest: 150% of the on-lending interest rate, calculated from the due date until the entire overdue debt is paid.- In addition to the on-lending interest rate specified in point 5 above, EVN must pay the following fees:

- External payment fee payable to Vietcombank: as announced by Vietcombank;- On-lending fee at a rate of 0.125% per year on the outstanding principal, of which VDB receives 0.1% per year and the Ministry of Finance receives 0.025% per year.

- The date EVN incurs debt with the State Budget is the date the Russian Federation records the debt for Vietnam as stipulated in the Agreement on the procedures for payment and accounting of the credit signed between Vietcombank and the Development and Foreign Economic Affairs Bank of Russia (Vnesheconombank) signed on May 23, 2012 (Bank Agreement).

See more regulations at Circular 26/2013/TT-BTC, effective from April 25, 2013.

Thu Ba

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