NOT ALLOW TO USE FOREIGN LOANS TO PAY TAX, FEES AND CHARGES
On May 25, 2020, the Government promulgates the Decree No. 56/2020/ND-CP on management and use of official development assistance (ODA) and concessional loans of foreign donors.
To be specific, ODA and concessional loans may only be used for development investment but not regular spending. It is not allowed to use foreign loans to pay tax, fees and charges, loan interest, purchase cars (except for specialized cars as decided by competent authorities), supplies, equipment for operating processes after the project is completed; ground clearance expenses, operating expenses of the project management unit;
In addition, the Decree regulates that the time for appraisal of the report on proposing the investment policy or the pre-feasibility study report of a program or project shall be calculated from the date on which the valid dossier is received by the Appraisal Council. This time for a national targeted program shall not exceeding 60 days; for a public investment program (excluding national targeted programs) shall not exceeding 45 days; for a project of group-A shall not exceeding 45 days.
Besides, the Government also guides the formulation of dossiers submitted to the competent authority and time for deciding on investment policy on ODA or concessional loan-funded programs or projects; order and procedures for appraising and approving technical assistance project or non-project aid documents...
This Decree takes effect on May 25, 2020.
