Credit policy for rural clean water supply and environmental sanitation in Vietnam in 2024

Credit policy for rural clean water supply and environmental sanitation in Vietnam in 2024 (Internet image)

On July 15, 2024, the Prime Minister issued Decision 10/2024/QD-TTg regarding credit for rural clean water supply and environmental sanitation.

Decision 10/2024/QD-TTg stipulates the credit policy for rural clean water supply and environmental sanitation to implement the National Strategy for Rural Clean Water Supply and Environmental Sanitation until 2030, with a vision until 2045 according to Decision 1978/QD-TTg of 2021 by the Prime Minister of the Government of Vietnam. This is to provide loans for the new construction, upgrading, renovation, and repair of two types of facilities, including:

- Household-scale water supply facilities.- Household environmental sanitation facilities.

Credit policy for rural clean water supply and environmental sanitation in Vietnam in 2024

According to Decision 10/2024/QD-TTg, the subjects eligible for clean water supply and environmental sanitation credit loans are households residing in rural areas where they have registered permanent or temporary residence (hereinafter referred to as customers).

- Loan conditions: Customers residing in rural areas without water supply facilities or household sanitation facilities, or with damaged facilities that need new construction, upgrading, renovation, or repair.

- Lending method: The Social Policy Bank where the loan is provided will lend through delegation to political-social organizations.

- The maximum loan amount is VND 25 million per type of facility per customer.

- The lending interest rate is 9.0% per annum. The overdue debt interest rate is 130% of the lending interest rate.

- Customers can borrow to invest in new construction, upgrading, renovation, or repair of 02 types of household water and environmental sanitation facilities, but the total outstanding balance for each type of facility does not exceed the maximum loan amount for each type.

- The loan term is agreed upon by the Social Policy Bank and the customer but is a maximum of 05 years (60 months).

- The Social Policy Bank will guide the loan application, procedures, repayment terms, and amounts, ensuring simplicity, clarity, and ease of implementation.

Debt extension and overdue debt transfer are carried out according to the regulations of the Social Policy Bank.

Note:

- Customers who signed a credit contract before September 2, 2024, will continue to implement the provisions in the signed credit contract.

In cases where customers are eligible, have needs, and meet conditions, they will continue to be provided with loans according to the provisions of Article 6 Decision 10/2024/QD-TTg.

- In cases where customers signed a credit contract but are no longer in rural areas according to the regulations of Decision 10/2024/QD-TTg at the time it takes effect, they will continue to implement the commitments, rights, and responsibilities as stated in the signed credit contract with the Social Policy Bank until the contract ends.

Handling violations of credit for rural clean water supply and environmental sanitation in Vietnam in 2024

Violations of credit for rural clean water supply and environmental sanitation are regulated in Article 15 of Decision 10/2024/QD-TTg as follows:

Agencies, organizations, or individuals who exploit the policies stipulated in Decision 10/2024/QD-TTg for personal gain or violate the law will be subject to compensation, disciplinary action, administrative penalties, or criminal prosecution according to the nature and extent of the violation as per legal regulations.

More details can be found in Decision 10/2024/QD-TTg, which takes effect in Vietnam from September 2, 2024.

Nguyen Ngoc Que Anh

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