HANOI, HO CHI MINH CITY ARE ENTITLED TO BORROW 100% ODA LOANS
On July 16, 2018, the Government issues the Decree No. 100/2018/ND-CP on amending and annulling some regulations on necessary business conditions in fields under the management of the Ministry of Construction.
Specifically, the on-lent proportion for the People’s Committee of the province is from 30 – 70% of the ODA loan or concessional loan, depend on the rate of additional funding from the Central government budget; for Hanoi capital and Ho Chi Minh city, the on-lent proportion is 100% of the ODA loan or concessional loan.
The enterprises are eligible for receiving all of the on-lent capital derived from the ODA loan and concessional loan which are used for investment project, but this amount shall not exceed 70% of the total investment capital approved by the competent authority.
With regards to the public sector entity which covers full recurrent expenditures and partial investment funding by its own budget, the on-lent proportion is 50% of the ODA loan and concessional loan used for investment project; 100% of the on-lent capital derived from the ODA loan and concessional loan used for investment project for the public sector entity which covers full recurrent expenditures and investment expenditures by its own budget.
Also in accordance with this Decree, if the end borrower cannot make repayment on principal, interest, fees and other relevant charges on time, it shall pay for the late payment interest which is equal to late payment interest rate specified in the Foreign Loan Agreement; if the Foreign Loan Agreement does not specify the late payment interest rate, this rate shall be determined as 150% of the on-lending interest rate.
This Decree takes effect on July 01, 2018.
