Re-lending ODA loans, foreign preferential loans

Accordingly, the conditions for re-borrowing for provincial People's Committees, enterprises, and public service units are implemented according to the provisions of Article 36 of the Law on Public Debt Management.

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The re-lending rate for provincial People's Committees is regulated as follows: Localities with a balanced supplementary rate from the central budget compared to the total balanced local budget expenditure of 70% or more, the re-lending rate is 30% of ODA loans and preferential loans.

Localities have a ratio of additional balance from the central budget compared to total local budget balance expenditure from 50% to less than 70%, the re-lending ratio is 40%.

Localities with a ratio of additional balance from the central budget compared to total local budget balance expenditure of less than 50%, the re-lending ratio is 50%.

Localities with central budget regulation (except Hanoi and Ho Chi Minh City), the re-lending rate is 70%. d) Hanoi and Ho Chi Minh City, the re-lending rate is 100%.

The Minister of Finance shall announce the re-lending rate of ODA loans and preferential loans for each province and centrally-run city applicable to each budget stabilization period before January 1 of the first year of the budget stabilization period.

Regarding the re-lending rate for public service units, the Decree clearly states: Public service units self-guarantee all regular expenses and investment expenses, the re-lending rate is 100% of ODA loans, preferential loans used for investment projects. Public service units self-guarantee all regular expenses and part of investment expenses, the re-lending rate is 50%.

For enterprises, the Decree stipulates: Enterprises are eligible to re-borrow all ODA loans and preferential loans used for investment projects, but not exceeding 70% of the total investment approved by competent authorities.

The re-lending interest rate stipulated in Clause 5, Article 34 of the Law on Public Debt Management includes the interest rate on foreign loans of the Government, fees as stipulated in the foreign loan agreement, re-lending management fee and re-lending risk reserve.

The re-borrower is responsible for using the re-loaned capital for the right purpose and effectively in accordance with the investment policy approval decisions, investment decisions of competent authorities, approved project documents, and signed re-lending contracts.

The re-borrower shall repay the debt in full and on time according to the re-loan contract to the Ministry of Finance (in case of re-lending to the Provincial People's Committee) or to the authorized re-lending agency so that these agencies can fully and on time repay the debt recovery amount to the Debt Repayment Accumulation Fund.