3 trillion VND to support interest rates on loans at the Social Policy Bank

PV:The Government has just issued Decree 36/2022/ND-CP dated May 30, 2022 on interest rate support for loans at the Social Policy Bank, loan capital, interest rate compensation and management fees for the Social Policy Bank to lend according to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the Socio-economic Recovery and Development Program.So, please tell us, what conditions must customers meet to receive interest rate support from the State budget?

Mr. Nguyen Van Vinh:Customers borrow capital from the State budgetinterest supportwhen fully meeting the following conditions:

1. Have a loan that meets the following conditions:

a) Belonging to policy credit programs lent by the Social Policy Bank according to: Government Decree; Prime Minister's Decision; authorization documents of local authorities, economic organizations, socio-political organizations, associations, unions, non-governmental organizations, domestic and foreign individuals; agreements and contracts for re-borrowing from ODA capital and foreign incentives; other foreign funding agreements;

b) Loan interest rate above 6%/year;

c) Disbursed by the Social Policy Bank and has outstanding debt during the interest support period.

The epidemic has greatly affected the production and business activities of enterprises. Therefore, fiscal and monetary policies to support the Government's Socio-Economic Recovery and Development Program are extremely necessary. In the photo: An aluminum and glass production and business establishment in Giang Son Dong commune, Do Luong district borrowed capital from the policy bank to invest in production lines and expand production. Photo: Thu Huyen

2. Customers must borrow capital for the right purpose and use the loan capital for the right purpose according to regulations.

The period of interest rate support is from January 1, 2022 to December 31, 2023 or when the Social Policy Bank announces the end of interest rate support according to regulations, whichever comes first.

The loan period with interest support is determined from the time ofdisbursementLoan until the customer pays off the principal but not outside the interest support period.

The interest rate support level for loan customers is 2%/year calculated on the outstanding loan balance of disbursed loans during the interest rate support period and the loan period for which interest rate support is provided.

The Decree clearly states that interest rate support must be public, transparent, targeted to the right subjects and for the right purposes, avoiding policy exploitation.

The State budget shall fully and promptly allocate capital to support interest rates for the Social Policy Bank to support interest rates for customers. The total maximum capital to support interest rates is 3 trillion VND.

The Social Policy Bank provides interest rate support in accordance with regulations, creating convenience for customers. Interest rate support is not provided for overdue or extended debt.

Officers of Nam Dan District Policy Bank guide people to borrow capital. Photo: Thu Huyen

Regarding the method of interest rate support, the State budget supports interest rates for customers borrowing capital through the Social Policy Bank and pays the interest rate support amount to the Social Policy Bank according to regulations.

Every month, the bank calculates the supported interest amount and deducts it from the interest payable by the borrower.

PV:Could you please tell me the procedure for settlement and approval of annual interest support settlement?

Mr. Nguyen Van Vinh:Pursuant to Article 7 of Decree 36/2022/ND-CP, regulations on settlement and approval of annual interest rate support are as follows:

BranchSocial Policy Bankresponsible for making annual interest rate support settlement and preparing interest rate support settlement dossiers to send to the Social Policy Bank (Head Office) before February 10 of the year following the settlement year for settlement approval. Loans with interest rate support in the settlement dossier must ensure that they are for the right subjects and fully meet the conditions for interest rate support as prescribed in this Decree.

Banks disburse loans to create jobs according to Resolution 11 for beneficiaries. Photo: Thu Huyen

The Social Policy Bank shall review and approve the settlement for the Social Policy Bank Branches and prepare a summary report on the actual interest rate support settlement in the settlement year according to the form in Appendix II issued with this Decree and send it to the State Audit Office so that the State Audit Office can conduct the audit in accordance with the provisions of Clause 3, Article 7 of Resolution 43/2022/QH15 and relevant legal documents.

Before October 1 of the year following the settlement year, the Social Policy Bank shall prepare a dossier requesting settlement appraisal and send it to the Ministry of Finance for settlement appraisal. The dossier requesting settlement appraisal for interest rate support sent to the Ministry of Finance includes: Official dispatch requesting settlement appraisal for interest rate support; summary report on settlement of interest rate support (according to audited data); notification of audit results of the State Audit on interest rate support in the settlement year at the Social Policy Bank (copy).

PV:Inthe process of implementation, ifIf the customer's loan does not meet the conditions for interest rate support,The recovery of the amount of interest subsidy will besuchWhat is the procedure for recovering the support money?what sir?

Mr. Nguyen Van Vinh:Pursuant to Article 7 of Decree 36/2022/ND-CP, the recovery of interest subsidized amounts is regulated as follows:

During the implementation process, if it is discovered that a customer's loan does not meet the conditions for interest rate support from the state budget as prescribed in this Decree, the Social Policy Bank shall immediately recover the amount of money that the Social Policy Bank has supported with interest rate for the loan customer;

In case the state budget has paid the interest support amount or has settled the interest support for the loan specified in Point a of this Clause, the Social Policy Bank shall refund the state budget or report to deduct it from the interest support payment of the following year.

Immediately after the Government issued Decree 36/2022/ND-CP on May 30, 2022, the Vietnam Bank for Social Policies issued a document guiding its implementation. In the photo: Disbursing policy loans to people at the headquarters of Tan Ky Bank for Social Policies. Photo by Thu Huyen

PV:SohiCurrently, the implementation of the Resolution is underway.definition 36at branch NgHow is the An system, sir?

Mr. NgNguyen Van Vinh:Immediately after the Government issued Decree 36/2022/ND-CP on May 30, 2022, the Vietnam Bank for Social Policies issued a document guiding its implementation. Nghe An Bank for Social Policies also organized training to deploy to all staff in the entire branch. The 2% interest rate support package, when implemented, will help customers access bank loans with lower interest rates, thereby joining hands with customers to reduce pressure in production and business, overcome difficulties, and gradually recover after the Covid-19 pandemic.

PV:Thank you very much!