THE
PRIME MINISTER
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No.
497/QD-TTg
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Hanoi,
April 17, 2009
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DECISION
ON
GIVING INTEREST RATE SUPPORT TO LOANS FOR PROCUREMENT OF MACHINE, EQUIPMENTS,
MATERIALS TO SERVE AGRICULTURAL PRODUCTION AND MATERIALS FOR BUILDING DWELLING
HOUSES IN RURAL AREAS
THE PRIME MINISTER OF
GOVERNMENT
- Pursuant to the Law on
Governments Organization dated 25 December 2001;
- Pursuant to Resolution No. 12/NQ-CP dated 6 April 2009 of the Government on
building the mechanism, policy on giving support to subjects in rural areas to
procure machines, equipments, materials for agricultural production;
- In consideration of proposals of Ministers of Industry and Trade, Agriculture
and Rural Development, Finance and the Governor of the State Bank of Vietnam,
DECIDES:
Article 1. The State
shall give interest rate support to short, medium term VND loans by organizations,
individuals to procure machines, equipments, facilities, materials for
agricultural production and materials for building dwelling houses in rural
areas.
Article 2. Subjects and
scope of application
1. State owned commercial banks,
joint stock commercial banks, joint venture banks, foreign banks branches
operating in Vietnam, 100% foreign owned banks, finance companies and Central
Peoples Credit Fund (hereinafter referred to as commercial banks).
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Article 3. Goods to be
produced domestically shall be entitled to interest rate support:
1. Machinery products,
mechanical equipments, facilities to serve agricultural production and
processing:
a. Internal combustion engines:
small engines with less than 30CV, hydraulic engine with less than 80CV;
b. Combine harvester;
c. Tractor, plough, ripper,
earth-working machine;
d. Reaping machine, thresher,
agricultural product dryer, rice mill, water pump, electrical generator, tea
leaf tumbling machine, corn sheller/gin, seed drill;
dd. Oxygen aerator for
aquaculture, motor boat, canoe of all kinds;
e. Lawn mower, lawn cutter,
mill, mixer, pelleter, performing machine of food for cattle and fowls, milking
machine, incubator of fowls;
g. Light lorry,
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2. Materials for agricultural
production
a. Chemical fertilizer of all
kinds
b. Pesticide
3. Major construction materials for
building dwelling houses in rural areas.
Article 4. Principles of
lending and giving interest rate support and conditions for loan
1. Commercial banks shall
provide loan under the normal credit mechanism; carry out the interest rate
support in accordance with provisions in this Decision and guidance of the
State Bank of Vietnam; deduct amount of supported interests from the amount of
interests payable for borrowing organizations, individuals upon the maturity of
loan interest collection; not be authorized to refuse interest rate support if
the loan is entitled to interest rate support.
2. Conditions for loan in
respect of borrowing organizations, individuals:
a. Being a subject stipulated in
Article 1 and goods stipulated in Article 3 of this Decision.
b. Having legal residence
address and being certified by Peoples Committee of district, ward, townlet as
direct producer (not buying for selling again)
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Article 5. Maximum amount
of loan, supporting interest rate, term of interest rate support
1. Maximum amount of loan and
supporting interest rates:
a. In respect of machinery
products, mechanical equipments, facilities to serve agricultural production
and processing and computers: the maximum amount of loan shall be equal to 100%
of goods value (except for computer, it shall not be in excess of 5 million
dong/ item) and they shall be entitled to 100% loan interest rate support;
b. In respect of agricultural
materials: the maximum amount of loan shall be equal to 100% of goods value,
but not in excess of 7 million dong/ha and they shall be entitled to 4% loan
interest rate support;
c. For construction materials of
all kinds for building dwelling houses: the maximum amount of loan shall be
equal to 100% of goods value, but not in excess of 50 million dong and they
shall be entitled to 4% loan interest rate support;
2. Term of interest rate
support:
Loans performed under credit
contracts to be signed, disbursed from 1 May 2009 to 31 December 2009 of
organizations, individuals for:
a. Machinery products,
mechanical equipments, facilities to serve agricultural production and
processing and computers: loan term entitled to interest rate support shall be
24 months at most.
b. Agricultural materials and
construction materials of all kinds for building dwelling houses, the loan term
entitled to interest rate support shall be 12 months at most.
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1. On monthly basis, the State
Bank of Vietnam shall refund money amount to commercial banks which gave
interest rate support to organizations, individuals on the basis of reports and
proposals of commercial banks.
2. Supporting budget under
provisions in this Decision shall be deducted from interest rate support source
of the Government.
Article 7. Conditions for
goods entitled to loan interest rate support under this Decision.
1. Products which are
domestically made
2. Products which are registered
and have selling price listed and goods label in accordance with current
provisions of applicable laws.
Article 8. Organization
of implementation
1. The State Bank of Vietnam
shall preside over, coordinate with the Ministry of Finance, Ministry of
Industry and Trade and Ministry of Agriculture and Rural Development to provide
guidance (ensuring procedures to be simple, convenient and suitable with
operating conditions of organizations, individuals in rural areas), inspect,
supervise and make periodical report to the Prime Minister for the
implementation of this Decision.
2. Ministry of Industry and
Trade shall preside over, coordinate with Ministries, industries and localities
to carry out inspection, supervision to ensure goods to be supplied
sufficiently, with right quality and in line with provisions in Article 7 of
this Decision.
3. Peoples Committee in
provinces, cities under the central Governments management shall:
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b. Based on capacity of local
budget, take initiative in supporting the procurement of machine, equipment,
facilities, materials for agricultural production and materials for building dwelling
houses in rural areas besides support policy stipulated in this Decision.
4. Ministry of Information and
Communications shall direct mass media agencies to propagandize and publicly
spread policies, guidelines, commodities, subjects entitled to interest rate
support for the knowledge and access to supporting loans of the State by people
as stipulated in this Decision.
5. Commercial banks shall carry
out interest rate support in accordance with provisions in this Decision and
guidance of the State Bank of Vietnam.
6. Organizations, individuals
shall:
a. Carry out borrowing
procedures in accordance with guidance by lending commercial bank
b. Take responsibilities to the
law for the use of loan funds, ensuring the right purpose and ability to make
full and timely payment of loan principals and interests in accordance with
applicable provisions.
Article 9. This Decision
shall be effective from the date of signing.
Article 10. The Governor
of the State Bank of Vietnam, Ministers, Heads of ministerial level agencies,
Heads of Governments agencies, President of Peoples Committee of provinces,
cities under the central Governments management, Chairman of Board of
Directors, General Managers of commercial banks shall be responsible for the
implementation of this Decision.
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PRIME
MINISTER
Nguyen Tan Dung