Allow the Use of Accumulation Fund to Repay Debts on Behalf of the Guaranteed Person

07:52, 11/07/2024

This is a notable new point in Decree 92/2018/ND-CP on the management and use of the Debt Repayment Accumulation Fund (referred to as the Fund) which has just been approved by the Government of Vietnam on June 26, 2018, replacing Decision 01/2013/QD-TTg.

Entities eligible for guarantees who face difficulties and cannot repay the debt on time for loans or bond issuances guaranteed by the Government of Vietnam may receive funding from the Fund to repay the debt on their behalf.

There are a few notes regarding the allocation of funds from the Fund to repay debts:

- The guaranteed entities and parent companies must enter into a mandatory loan agreement with the Fund management agency;- The guaranteed entities must fully and promptly fulfill their debt repayment obligations to the Fund as per the terms of the Fund's allocation agreement;- In case the entity receiving funds can only partially fulfill the due debt obligations, priority order for debt clearance will be implemented;- If the entity cannot repay the debt to the Fund on time, debt rescheduling and deferment will be applied.

Decree 92/2018/ND-CP took effect on July 1, 2018.

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