TO REDUCE ON-LENDING RATES OF ODA LOANS FOR PROVINCIAL-LEVEL PEOPLE’S COMMITTEES FROM OCTOBER 01
On August 16, 2021, the Government issues the Decision No. 79/2021/ND-CP amending and supplementing a number of articles of Decree No. 97/2018/ND-CP of June 30, 2018, on the on-lending of official development assistance loans and foreign concessional loans of the Government.
Specifically, for a locality with transfers from the central budget accounting for 70% or more of its total local budget expenditures, the on-lending rate is reduced from 30% to 10% of ODA loans or concessional loans. For a locality with transfers from the central budget accounting for between 50% and below 70% of its total local budget expenditures, the on-lending rate is 30% of ODA loans or concessional loans, instead of 40% as in previous regulations.
Besides, for programs and projects related to sustainable development and climate change adaptation of a number of localities in the Mekong Delta region that need support from the Government as instructed by the Government in Resolution No. 41/NQ-CP, on-lending rates shall be decided by the Government but must be not less than 10%.
Also in accordance with this Decree, security is not required for: Loans to be on-lent to provincial-level People’s Committees; Loans received by project management boards under ministries then to be transferred to provincial-level People’s Committees.
This Decree takes effect on October 01, 2021.
