Process for Allocating Funds to Support Merchants in the Temporary Purchase of Rice and Paddy

1. For the Northern Food Corporation, Southern Food Corporation:

- The Northern Food Corporation and Southern Food Corporation guide their member units to prepare documents for bank loan interest rate support and compile them together. The corporations are responsible for the accuracy of the compiled data;- The Northern Food Corporation and Southern Food Corporation must submit, either directly or via postal service, 01 set of documents to the Ministry of Finance (Department of Corporate Finance) before October 1, 2015;- The Ministry of Finance will accept the compiled documents from the Northern Food Corporation and Southern Food Corporation (not accepting documents from the member units of the corporations). The appraisal of interest support documents will be conducted once after the interest support period ends and will be disbursed through the corporation's account;- After receiving the required documents as prescribed, the Ministry of Finance will appraise them and process the interest rate support for the Northern Food Corporation and Southern Food Corporation. The appraisal and funding disbursement for the two corporations must be completed no later than November 30, 2015;

In case the corporation has not provided sufficient documents or does not qualify for interest rate support, within 15 working days from the receipt of the documents, the Ministry of Finance (Department of Corporate Finance) will issue a written request for the corporation to supplement the documents as prescribed or notify the corporation of the reason for not being considered for interest rate support. In the document requesting additional documents, the Ministry of Finance must specify the time for the corporation to complete the documents.- After receiving the support funds from the Ministry of Finance into the corporation's account, the corporation must disburse to the member units within 05 working days.

2. For other traders:

- After the end of the temporary storage purchase period (April 15, 2015), traders must report to the local Department of Finance where the trader's headquarters are located on the results of the temporary storage purchase before May 31, 2015;- Based on the report of the temporary storage purchase results from the traders, the local Department of Finance where the trader's headquarters are located will prepare a projected plan for interest rate support costs for buying temporary storage paddy, rice of traders in the area to submit to the Provincial People's Committee (City) to send to the Ministry of Finance before June 15, 2015;

The estimated cost of interest rate support is determined according to the following formula:

Interest rate support cost = Value of temporary storage purchase as of April 15, 2015 (or outstanding bank loan balance for temporary storage purchase as of April 15, 2015, in case the outstanding loan balance is less than the value of temporary storage purchase) x Interest rate support period (4 months) x Average interest rate of commercial banks where traders borrowed to buy temporary storage paddy, rice (but not exceeding 7% / year) / 12 months.- Based on the request of the Provincial People's Committee (City), the Ministry of Finance will allocate targeted supplementary funds from the central budget to the local budget to implement the interest rate support policy for loans to buy temporary storage paddy, rice from the 2015 central budget economic operational expenses decided by the National Assembly;- No later than October 1, 2015, traders must submit, either directly or via postal service, 01 full set of documents to the local Department of Finance where the trader's headquarters are located;- After receiving the required documents as prescribed, the Department of Finance is responsible for appraising the documents and submitting them to the Provincial People's Committee (City) for a decision to disburse the interest rate support funds by money order to the trader’s deposit account at the State Treasury. The appraisal of the interest support documents will be conducted once after the interest support period ends, and the disbursement of funds to the traders must be completed no later than November 30, 2015;- In case traders have not provided sufficient documents or do not qualify for interest rate support, within 15 working days from the receipt of the documents, the Department of Finance will issue a written request for the traders to supplement the documents as prescribed or notify the traders of the reason for not being considered for interest rate support. In the document requesting additional documents, the Department of Finance must specify the time for the traders to complete the documents;- At the end of the budget year, the Provincial People's Committee (City) will compile a settlement report on the interest rate support funds for bank loans to buy temporary storage paddy, rice and send it to the Ministry of Finance to supplement the locality in case of fund shortage or return the unused funds to the central budget.

Details can be found at Circular 50/2015/TT-BTC effective from April 15, 2015.

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