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Vietnam: A SME which has invested 20% of the owner's equity shall be granted credit guarantees for borrowing capital

Duy Thịnh

15:47, 30/03/2018

Recently, the Government of Vietnam issued Decree No. 34/2018/ND-CP on establishment, organization and operation of credit guarantee funds for small and medium-sized enterprises (SMEs).

According to Decree No. 34/2018/ND-CP of Vietnam’s Government, a SME shall be granted credit guarantees by the Credit Guarantee Fund if it has invested 20% of the owner's equity into the project (previously regulated at 15%).

In addition to the above condition, a SME must also meet the following conditions:

- Prepare its effective and creditworthy investment projects, production and business plans.

- Investment projects, production and business plans shall be assessed and subject to the decision to extend the credit guarantee.

- When applying for the guarantee, the beneficiary does not incur any tax debt for 1 year or longer and non-performing loans at credit institutions. If the tax debt incurred due to objective reason, the beneficiary must have a certification of its superior tax authority.

- There are security interests for loan guarantees as prescribed in Article 25 of Decree No. 34/2018/ND-CP.

View more details at Decree No. 34/2018/ND-CP of Vietnam’s Government, effective from March 08, 2018.

DN vừa và nhỏ đầu tư 20% vốn sở hữu sẽ được bảo lãnh để vay vốn

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

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