Vietnam: Sanctions imposed on project owners misusing loans for passenger transport

11:05, 10/01/2016

This is an important content specified in Circular No. 02/2016/TT-BTC of the Ministry of Finance of Vietnam on guidance on providing 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.

xu ly khi chu dau tu su dung von vay sai muc dich van tai hanh khach, Thong tu 02/2016/TT-BTC

According to Circular No. 02/2016/TT-BTC of the Ministry of Finance of Vietnam, when discovering that a project owner misuses their loans borrowed 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:

- Credit institutions borrowing money shall take punitive actions in accordance with laws; simultaneously, they shall report the case in writing to the Department of Transport, the Department of Finance, the Department of Planning and Investment, the State Treasury, and the provincial People's Committees, to withhold interest rate support from that project owner.

- The provincial People’s Committee shall grant a decision to request that project owner to reimburse interest rate support amounts derived from the state budget (in cases where the local government’s budget has disbursed such interest rate support amounts), or a rejection decision (in cases where the local government’s budget has yet to finance such interest rate support amounts); concurrently, command local competent authorities to collect reimbursed monetary amounts for the local government’s budget.

Besides, Circular No. 02/2016/TT-BTC also specifies that on a regular and annual basis (not later than 120 days from the end of a financial year), the provincial People’s Committee shall send a year-end evaluation report on the efficiency in implementation of interest rate support policies for loans financing transport vehicle and infrastructure investment projects for the public passenger bus service sector, by adopting the Appendix 3 and 4 hereto, to the Ministry of Transport, and to the Ministry of Finance for cooperation and monitoring purposes.

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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