NOT TO SUPPORT INTEREST RATE, SUBSIDIZE INTEREST RATE DIFFERENCE FOR THE OVERDUE PRINCIPLE BALANCE
On November 15, 2019, the Minister of Finance promulgates the Circular No. 82/2019/TT-BTC on amending and supplementing a number of Articles of the Circular No. 89/2014/TT-BTC dated July 07, 2014, providing guidelines on loan interest rate support and interest rate difference subsidies due to the implementation of supportive policies to reduce losses in agriculture.
Accordingly, provisions on conditions to receive interest rate support and subsidy on interest rate difference also is supplemented. Specifically, if loans is overdue for a part of principal balance, customer shall not be entitled to interest rate support and interest rate difference subsidies with the overdue principal balance from the time of arising overdue debt. The principle balance that is not overdue according to regulations shall continue to be entitled to interest rate support and interest rate difference subsidies in accordance with the Decision No. 68/2013/QD-TTg.
In addition, the Ministry of Finance also supplement provision on reporting methods. To be specific: Commercial banks shall send written reports to the Ministry of Finance. Formula to calculate the amount of subsidized difference in interest on a loan which is supported by the State is also amended and supplemented.
This Circular takes effect on December 30, 2019.
