Hanoi-Vietnam: Eligibility requirements for granting credit guarantee by the Cooperative Development Support Fund

07:56, 11/07/2024

The Prime Minister of Vietnam issued Decision 23/2017/QD-TTg along with the Regulation on credit guarantee and interest rate after investment of the Cooperative Development Support Fund.

The cooperatives and unions of cooperatives in Vietnam are eligible to be considered and granted credit guarantees for loans used for the execution of projects at credit institutions when the following eligibility requirements are met:

- The cooperatives and unions of cooperatives in Vietnam are subjects of credit guarantee;

- The loans used for the execution of projects have been appraised and evaluated as effective and capable of repaying the loan;

- The owner's capital contributing to the project is at least 20% of the total project investment;- At the time of the guarantee request, the cooperatives and unions of cooperatives in Vietnam as the project investors do not have non-performing loans.

The Cooperative Development Support Fund may grant a guarantee of up to 100% of the loan value at the credit institution but not exceeding 80% of the total project investment, excluding working capital.

Additionally, Decision 23 amends and supplements several clauses of Decision 246/2006/QD-TTg dated October 27, 2006.

Decision 23/2017/QD-TTg takes effect from August 15, 2017.

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