Interest Rates for State Investment Credit Loans

1. The interest rate for State investment credit loans shall be equal to the weighted average interest rate of the winning bid rates for Vietnam Development Bank bonds guaranteed by the Government of Vietnam with a 5-year term during 1 year prior to the interest rate announcement as stipulated in this Decree plus (+) the management operating costs and risk provisions rate of the Vietnam Development Bank.

The Ministry of Finance shall submit to the Prime Minister of the Government of Vietnam for a decision on the stable management costs rate over a 3-year period to ensure that the Vietnam Development Bank has sufficient operational funding and makes risk provisions as prescribed. In case of significant fluctuations, the Vietnam Development Bank shall report to the Ministry of Finance for submission to the Prime Minister of the Government of Vietnam for consideration and decision on the appropriate management operating costs rate.

2. Periodically on the last day of the quarter, based on the principles for determining the interest rate, the Vietnam Development Bank shall determine and announce the State investment credit loan interest rate.

3. The State investment credit loan interest rate for each project shall be applied to the entire outstanding balance of the project from the time of adjustment.

4. The overdue debt interest rate for each project shall be considered and decided by the Vietnam Development Bank, with a maximum of 150% of the on-time loan interest rate.

More details can be found in Decree 32/2017/ND-CP effective from May 15, 2017.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE