Pursuant to the law on organization of the Government of 25 December 2001;

Pursuant to the law on State budget of 16 December 2002;

Pursuant to Decree No. 133/2005/ND-CP dated 11 November 2005 the Government enacted regulations of borrowing and repayment of foreign countries;

Pursuant to Decree No. 131/2006/ND-CP dated 9 November 2006, the Government issued a regulation on the management and use of official development assistance resources;

Considering the recommendation of the Minister of finance, DECIDES: 1. Attached to this regulation from the capital, the Government's foreign aid.

Article 2. This decision has the effect after 15 days from the date The report.

The Ministers, heads of ministerial agencies, heads of government agencies, the Chairman of people's Committee of the central cities, is responsible for the implementation of this decision.

 

REGULATIONS on lending from the capital, the Government's foreign aid _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (attached to decision No 181/2007/QD-TTg dated 26 November 2007, the Prime Minister's) chapter I GENERAL PROVISIONS article 1. Scope these rules regulate the relations arising when the Government for organizations, businesses in the State and local government borrowing from the capital, the Government's foreign aid.

Article 2. Explanation of terms In this regulation the terms used have the same meaning as explained in the Decree No. 133/2005/ND-CP dated 11 November 2005 the Government enacted regulations of borrowing and repayment of foreign countries. The terms below are interpreted as follows: 1. "loans" is the Ministry of Finance on behalf of the Government: a) the direct or authorize lending institutions made loans of the entire business or part foreign capital from domestic loans, foreign aid to the Government's investment for the project to have the ability to payback , or;

b) For credit institutions in borrowing countries back to the next loan a credit program or the credit component of a project using foreign loans, or;

c) for the people's Committee, the central cities of the loan under the provisions of the law or by decision of the Prime Minister.

2. "the loan agreement or of foreign aid" is the international treaties by the Government or the State of Vietnam signed or authorised agency of the State or the Government of Vietnam signed with foreign Parties in order to provide capital for Vietnam to implement programs and projects.

3. "the donor or the lender" is the foreign Party funding for the program, project.

4. "the loan authorization contract" is the contract signed between the Ministry of finance with the lending agency.

5. "accounting rates" are the rates prescribed by the Ministry of finance refers to the accounting and reporting of foreign exchange income in the State budget.

6. "loan Fee" charges by the Government through lending institutions back to the currency of the borrower in the loan case back for foreign trade capital of the Government. Loan fees are determined and applied the same Government guarantee fee stated in the regulation and management of Government guarantee for the foreign loans are issued under decision No. 272/2006/QD-TTg dated 28 November 2006 from the Prime Minister's.

7. "Service Fees" are fees paid by the Ministry of finance for lending institutions back in case the Finance Ministry authorized lending institutions made management, recovery of loans again and not subject to credit risk.

Article 3. Conditions of the loan back 1. The condition for enterprises, economic organizations: a) has programs, projects using foreign aid, loan guarantees the following:-fit the projecting investment in development of the State;

-Complete the procedure according to the current rules of the State;

-Government allows use of loans, aid and donor be approved (case of foreign loan agreement required the approval of the sponsor);

-Ensure the possibility of repayment by financial schemes are appraised according to the regulations.

b) has a healthy financial situation, with no holes in the adjacent, 3 years without overdue debt to the credit institution and with no overdue debt for loans that back debt capital, the Government's foreign aid (if it is held, the active business) at the time of the loan back , has no outstanding debt, overdue State budget. For cases not enough businesses 3 years of operation, they must have the commitment of the owner or of the parent company.

c) made the loan guarantee for loans under the Agency's requirements for loans again unless the loan guarantee under the exemption provided for in article 11 of this regulation.

2. conditions for credit institutions: a) Is the Government allowing the use of loans, aid and donor be approved (case of foreign loan agreement required the approval of the sponsor);

b) ensure the possibility of repayment by financial schemes are appraised.

3. conditions for the people's Committee in the province, central cities: a) Is the law or the Prime allows borrowers back from loan capital, the Government's foreign aid;

b) loan used to invest in the development task of the local budget;

c) local budgets to ensure repayment.

Chapter II CONDITIONS for LENDING Items 1 GENERAL CONDITIONS APPLY to ALL CASES LENDERS BACK to article 4. Loan money back 1. As for the Government's ODA: the borrower can loan money back option is the local currency (Vietnam Dong) or in foreign currency borrowing of foreign descent according to ability to pay debt. Exchange rate from foreign currency to Vietnam Dong rates because of the financial accounting rules.

2. for foreign commercial loans of the Government: the borrower must get back the debt in foreign currency by foreign loans, the Government except a special case due to the Prime Minister to decide.

3. where the lender back to people's Committee, the central cities: lending money back is the original currency by foreign loans.

Article 5. Debt collection coins 1. With regard to ODA: in principle a borrower back on lending in the currency would then repay the money by then. The case of borrower repayment requirements back to the Government in Vietnam or in foreign currencies freely convertible currencies other than getting the loan back, lending agencies again to apply the exchange rate specified by the Ministry of finance or lending agency rates again agreed with the borrower the loan agreement in the write back to debt collection.

2. for commercial loans: money to repay foreign currency loans is the root. Case in Vietnam, again lending institutions apply rates sell out of the Bank or service of the foreign trade Bank of Vietnam in case no bank serves to collect the debt.

Article 6. The loan value back to 1. The value of loans again recorded in the loan agreement is determined on the basis of the value of the loan agreement, signed with foreign aid donors or lenders for each program, project. In the case of the loan agreement, signed for overseas aid projects but does not specify the allocation for each programme, the project, the value of the loans is determined based on the loan allocation decisions, the Government's aid.

2. The value of getting the actual debt is worth to be accumulated under each drawing time.

Article 7. Upon debt 1. With regard to the terms of the exit follow the form of letters of credit (L/C), direct payment, refund: the time a borrower back on debt with lending agencies is again the time of disbursement under the notice of sponsors.

2. With regard to the terms of the exit follow the form of the special account or the account of the advance: case of multiple projects in the same program, loan agreements, aid and use a particular account or account of the advance, the time a borrower back on debt with lending agencies is again the time funds from the account.

The case of the loan agreement, the only aid for a project and use a particular account or account of the advance, the time a borrower back on debt with lending agencies again is time donors or lenders of capital transfers into this account.

3. Based on the reported disbursements of donor or lender or proof of payment from the special account or the account of the advance, the Finance Ministry will announce or record ceasing to back the value of lending institutions disbursed according to the disbursement date, for each project or program and under the loan agreement , aid.

Lending institutions have the responsibility to notify the borrower back to getting debt and debt collection under notice or according to the Finance Ministry's spending record. Case the borrower does not agree with the figures reported or ceasing of the Ministry of finance, lending agencies again reported immediately to the Ministry of finance to handle.

Article 8. Interest dates 1. For commercial loans: loan interest dates back to slow and interest rates charged are stipulated in the loan agreement.

2. for ODA loan: interest rate interest rate and slow pay is calculated on the actual number of days of use of capital and on the basis of a 360-day year.

Article 9. Interest rates slowly if the borrower doesn't repay the loan fees, interest rates, and other timely repayments take slow interest rate charged under slow interest rate charged by 150% the interest rate stated in the loan agreement or slow interest rate charged in the original loan agreements depending on how much higher. Slow interest rate charged is calculated from the due date without pay until the date paid if slow from 15 days or more.

Article 10. Fees the borrower must pay the following fees: 1. foreign currency Fee: based on the specific loan agreements, the foreign fee may include management fee, charge, pledge, charge, premium drawing and other charges. People who borrow direct payments to sponsor these fees. In the case of the Government stand out charged overseas fees say the borrower must repay back on for the State budget.

2. The types of service fees by the Bank servicing collection: the borrower directly charged to the Bank in accordance with bank service.


Article 11. Collateral and loan guarantee measures 1. The borrowers have to mortgage the property or use other guarantee measures to ensure offset credit risks and other risks may occur include assets from the Government's loan and/or other property under the provisions of the law except in the case of a borrower's mortgage exemption object property or loan guarantee includes: a provincial people's Committee), central cities;

b) financial institutions, credit;

c) cases are prime allows application of trust or mortgage exempt property or loan guarantees (in whole or in part).

2. Commitment to the property mortgage and loan guarantees are embodied in the loan agreement. Lending institutions have the responsibility to complete the legal records of collateral and loan guarantee under the provisions of the law.

3. Lending institutions have the responsibility to manage, handle collateral and guarantee for the loan of the Government according to the General rules on collateral management and guarantee the loan of that agency.

The case of the Ministry of Finance's lending institutions, the Ministry of finance management, handle collateral and loan guarantees for the loan under the provisions of the regulation and management of Government guarantee for the foreign loans are issued under decision No. 272/2006/QD-TTg dated 28 November 2006 from the Prime Minister's.

Section 2 CONDITIONS for the LOAN AGAIN SPECIFIC to the PARTICULAR CASE article 12. Lenders back loans for foreign trade of the Government 1. The loan interest rate is the interest rate is determined on the basis of the foreign loan interest rate plus loans.

2. loan time again: a) for loans under the program, a project of the business: original repayment period by the Ministry of finance determines based on the payback of the investment projects are approved and authorized the evaluation results of the lending agencies again but not to exceed the time foreign loans.

Grace period defined by the Ministry of finance based on the time of construction until the project is put into operation outlined in the investment projects are approved and authorized the evaluation results of the lending institutions.

b) for programs, credit loans under commercial conditions for credit institutions: lending time under conditions of foreign loans.

Article 13. Lenders back for ODA of Government for loan businesses under the program, project 1. Lending rate again: a) the case of the loan back in Vietnam: the interest rate for the loan is determined by technical and economic sectors does not exceed the credit interest rate investing development of State regulation in each period. Some areas according to the annex I attached to this regulation are entitled to preferential interest rates according to the level of 33.3% and 55.5% compared to interest rates of State investment credit. This interest rates including service charge for the loan. The case of the investment credit interest rate of the state change, the preferential interest rates are changed according to the respectively.

The interest rate for the loan is applied does not change for the duration of the loan.

b) where lending in foreign currencies: the interest rate for loans by lending interest rates back in Vietnam defined in item (a) above minus the ratio of the corresponding exchange rate risks of lending money again, but not lower the interest rate borrowers of foreign countries and no higher than two-thirds (2/3) the commercial interest reference (CIRR) as host economic development (OECD) announced at the same time determine the interest rate for the loan.

On the basis of the level of Vietnam Dong rates fluctuations corresponding to each currency and inflation index fluctuations on average in the last 5 years for Vietnam's than the country/region: United States of America, the European Union and Japan, the level of risk rates applied to three types of foreign currency is the US dollar (USD) , Euro (EUR) and the Japanese yen (JPY) since this regulation is in effect to the end of March 2008 are specified in annex II. Annually no later than 15 March, based on the volatility of the financial markets, the Finance Ministry calculated and announced the level of risk the rates for the three types of Exchange mentioned above applies until the end of March of next year. Special cases are large fluctuations, the Ministry of finance can make a disclosure risk rates right in the States apply.

The case of the original loan agreement in foreign currencies other than the three types of exchange rate risk, exchange rate applied at the rate of the dollar exchange rate risks.

The interest rate for the loan after determining that is applied does not change for the duration of the loan.

2. The time limit for the loan repayment period) again a root is the Ministry of finance determines the match time in the projects of the documents to be approved by the authorized for each project or evaluation results of the lending institutions;

b) grace period are the Ministry of finance determines the base at the time of construction until the program/project to be commissioned as outlined in documents investment projects are approved and authorized the evaluation results of the lending institutions;

c) time start timing the refund deadline and grace is on the first drawing of the program/project (if the sponsor does not have other requirements);

d) a borrower may make the repayment before maturity, however must send notice in writing a minimum of 30 days before making the repayments for the lending institutions and the Ministry of finance.

Article 14. Lenders back for ODA loan for the program, the credit limit of credit institutions 1. Lending rate again: a) the case of the loan back in Vietnam: the interest rate for the loan is determined by the provisions of article 13 paragraph 1 point a to this regulation;

b) case lending in foreign currency: the interest rate for the loan is determined by the provisions of article 13 paragraph 1 point b of this regulation;

c) The credit institution is entitled to decide interest rates for loans for people using the final capital and credit risk on the loans. Credit institutions are entitled to the difference between the interest rates for borrowers and loan interest rates back from the Finance Ministry.

2. Review: lending time tenor with the term of the loan agreement, ODA of Government but does not exceed 20 years (including grace period).

Article 15. Lenders back people's committees of provinces/cities directly under central 1. Loan currency: currency of the loan under the contract signed between the Government and donors.

2. The interest rate for lending: by foreign interest rate by the Government.

3. The duration of the loan: original repayment period including and the grace period is retained under the Government's foreign loans.

Article 16. Special circumstances If the sponsor asked for loans under conditions other than specified in this regulation from the Government, the Ministry of finance consulted relevant bodies, reports the Prime Minister to decide.

Article 17. The service fee for the loan back in water 1. Loan service fees are calculated according to the rate of 1.5% on the number of actual debt recovery (including the interest rate and the interest rate, slow descent charged if applicable) irrespective of the currency debt collection.

2. Service fee for lenders are lending institutions back to inform the Ministry of Finance according to each States currency debt and lending institutions are allowed to self extract from actual debt-recovery before moving on to pay for the Finance Ministry.

Chapter III PROCEDURES for the LOAN back thing 18. Proxy form for the loan again depending on the specific conditions, the Ministry of finance would deals with agencies, organizations authorized by the Ministry of Finance made the lenders back to follow one of the two following forms: 1. for loans under the program, project: review lending agency management recovery of loans, but not subject to credit risk. In this case the loan Agency is entitled to charge back the lending services referred to in article 17 of this regulation.

2. for loans under the program, the credit limit of the credit institutions: lending institutions were select The loans back, responsible for project appraisal, loan provisions for loan interest rates, borrower credit and risk. In this case the loan Agency is entitled to the interest rate spreads between the interest rates for loans to the borrowers and loan interest rates finally back from the Finance Ministry.

Article 19. Appraise, approve programs, project lending 1. For the ODA loan to businesses under the program, project: Ministry of planning and investment is hosted, in cooperation with the Finance Ministry and the Prime Minister approved the list of projects was borrowed again from the source of the loan, the Government's foreign aid before the international treaty framework or project list agreement was signed with foreign countries.

The evaluation and approval of projects is done by Decree No. 131/2006/ND-CP dated 9 November 2006 the Government enacted regulations to use funds official development assistance; Decree No. 133/2005/ND-CP dated 11 November 2005 the Government enacted regulations of borrowing and repayment of foreign countries; Decree No. 106/2006/ND-CP of September 22, 2006 the Government detailing and guiding the implementation of some articles of the law on investment. Assigned responsibility for the efficiency and the possibility of repayment of the project for the State budget and be responsible before the law on evaluation results.

The loan agencies back is responsible for evaluation of the financial approach back projects lenders, borrower's financial capability and evaluation results report for the Ministry of Finance before the signing of the loan agreement.

2. The Ministry of Finance made the evaluation methodology used the loan and the repayment of the credit institutions participated in the program before you sign the loan agreement.

Credit institutions made loans to people who use the end capital, responsible for project appraisal and lending objects selection next match credit program agreed with the donor or lender, and bear all risk in the loan process again for those objects.

3.


The State Bank of Vietnam implement evaluation plans to use the loan and the repayment of the credit institution to join a program and notification of results evaluation for the Ministry of finance.

Credit institutions made loans to people who use the last capital responsible for project appraisal and lending objects selection next match credit program agreed with the donor or lender, and bear all risk in the loan process again for those objects.

4. With regard to the Government's commercial loans for business lending: lending institutions back is responsible for evaluation of the financial approach back projects lenders, the financial capacity of the borrower and the evaluation results report back to the Ministry of Finance before the signing of the loan agreement.

5. review lending committees of provinces and cities under central: the Ministry of finance the repayment ability evaluation of local budget under the current regulations on the decentralization of the budget.

The case of the Ministry of finance is loan agencies back to the project said in point 1 and in point 4 above, the evaluation of the financial approach again performed as prescribed in the regulation and management of Government guarantee for the foreign loans are issued under decision No. 272/2006/QD-TTg dated 28 November 2006 from the Prime Minister's.

Article 20. The order and procedures for lending 1. Determine the conditions of lending: the borrower again presented to the Ministry of finance and lending institutions the following materials to make determining the conditions for the loan:-project documents or records/credit program has been approved by the authority;

-The decision of investment approval authority;

-The text of the Prime Minister allowing use of loans, the Government's foreign aid;

-Financial report 3 years (with respect to the business/economic organizations are active); for those cases not enough businesses 3 years of operation, they must have the financial statements of the parent company or the company's strategic shareholder and written commitment of the governing body on the level of the parent company, or strategic shareholders ensure repayment ability;

-Financing approach used and repaid the loan on the basis of reference frame conditions for loans under this regulation.

During 30 days from the date of the valid documents say enough on the lending agency back to conduct the appraisal back to the project's financial plan, the borrower's financial capability and send back the result appraisal for the Finance Ministry.  On the basis of the evaluation results, the Ministry of finance determines the conditions for lending for specific projects under the framework of the conditions of this regulation. In special cases failed lending framework conditions, the Ministry of finance consulted the relevant bodies and the Prime Minister's decision.

The case of the project to be determined do not have the ability to repay the loan under the conditions due to the Ministry of Finance announced, the Ministry of Finance reported the Prime Minister to decide not to arrange funds for the program, this project.

2. The contract loan authorization after determining the conditions for the loan again or after being approved by the Prime Minister, within 15 days, the Ministry of finance signed the loan authorization back to lending institutions with the General principles in the form attached in annex III.

3. the signing of the loan agreement: review lending institutions signed loan agreement with a borrower under the conditions stated in the contract of loan authorization again signed with the Ministry of finance.

After the signing of the loan agreement, the loan agency sends a to the Finance Ministry to coordinate the management track.

4. Procedure of the debt: based on informed each time the exit of the donor or the lender or the Bank's notice served on the genus from special accounts, The accounting records financial state budget income and expenditure records for lending institutions to receive and inform the borrower back on debt. The case of the Ministry of finance loans direct borrower get back the debt directly to the Ministry of finance.

Immediately after receiving the notice to end the term of the loan agreement, drawing foreign aid, the Finance Ministry reported to lenders or the borrowers back on total capital received the ultimate borrower's debt.

Article 21. Debt collection for lending the borrower made debt, full repayment obligations as stated in the loan agreement for the lending agency.

The loan agencies back carry debt, full repayment obligations as stated in the contract authorized lenders back into the Fund to pay foreign debt accrued by the Finance Ministry, according to the specific instructions of the Ministry of finance. The case of the Ministry of finance authorized lending institutions back pay owed directly to foreign countries, lending institutions only transferred to the Finance Ministry after the rest have made payable to foreign countries.

In the event of a change of policy or amend the conditions for the loan, the lender or agency Ministry of finance not repaid Loan debts back was recovered earlier.

Article 22. Assigned responsibility for the governance of the loan from the borrower, source of the Government's foreign aid 1. The Ministry of planning and investment has responsibility: a) presiding, United with the Finance Ministry building and the Prime Minister approved the list of programs, the entire loans projects or lending a part from the source of the loan, the Government's foreign aid;

b) in coordination with the Ministry of Finance established the mobilization and plans to use the commercial loan process is the prime consideration and decide for each specific case.

2. The Ministry of finance, the Government's lead agency in implementing the management state of the loans back from the capital, the Government's foreign aid, has the responsibility to: a) involved with The planning and construction process of the Prime Minister approving the list of programs, projects were borrowed back from ODA sources of Government before international treaties or frame project list agreement was signed with foreign countries;

b) periodically every year no later than September 15, 1 base, volatility of the financial markets, reviewing and frame the interest applied to the technical-economic sector regulations and exchange rate risk level in point 1 article 13 of this regulation and make adjustments if necessary;

c) presiding, in collaboration with lending institutions and related agencies to determine the conditions for lending for specific programs or projects using the loans, the Government's foreign aid under the frame conditions of this regulation;

d) Signed the loan authorization contract with lending institutions or loan agreement with a borrower in case of direct finance lenders;

DD) supervise, manage, recover the loan under the provisions of the contract of loan authorizations or side agreement or loan agreement;

e) annual recurring or one-time request, perform the Prime report the situation to manage, use, recovery of loan capital from the capital, the Government's foreign aid.

3. State Bank of Vietnam is responsible for: implementing evaluation plans to use the loan and the repayment of the credit organizations participate in the program credit limit in case the Ministry of finance for the credit institutions lending programs, the credit limit under conditions of trade.

4. Lending institutions have the responsibility to: a) performed the appraisal back financial approach the project, lending the loan program, the Government's foreign aid, borrower's financial capability before signing the loan agreement;

b) manage and supervise the use of the loan back to the borrower. Make notes, clear accounting of loans again by the borrower;

c) perfecting the legal records, management and processing of mortgage assets and other assets by the borrower again used as loan guarantees;

d) adopt the necessary measures consistent with the law to make a withdrawal of capital from lenders who lent back full, timely and moving into foreign debt accumulation Fund in accordance with the terms of the loan agreement and the loan authorization contract;

DD) provides information, reports related to the implementation of the programme, the project for the Ministry of finance, the lender or sponsor quarterly or irregularly as required;

e) where the borrower does not pay the whole or part of the debt, after the application of all necessary measures, must:-repayment instead of the borrower if lending institutions are the Ministry of finance loan authorized under the method of credit risk itself.

-the Finance Ministry report, project evaluation agencies to take measures to handle the if lending institutions are the Ministry of finance under a loan authorization method not good credit risks.

g) report on the businesses and organizations that have programs, the project received the loan back but not repaying for the Finance Ministry to put into the list of objects to be considered to receive the next loan. This annual list will be the Ministry of Finance notifies the lending agency to the Agency does not conduct the loan application accepted by the audience.

5. The borrower has the responsibility: a) management, use the loan back to your purposes have been approved in the report or investment feasibility study report of the project has been approved by the authorities;

b) make full repayment to the lending agency back in accordance with the conditions stipulated in the loan agreement signed with the lending agencies again;

c) done right regulations on mortgage and loan guarantee measures provided for in article 11 of this regulation;

d) quarterly or as requested unscheduled leave their lending agency provides the information, the report concerning the implementation of the program, projects for the lending institutions, the Finance Ministry and the donor or lender, and has the responsibility to inform the aforementioned authority arise situations cause delays the progress of program implementation project, and the changes related to the program, the project;


DD) responsible before the law about the truthfulness of the information provided to the Agency lending.

Chapter IV MISCELLANEOUS PROVISIONS Article 23. Disclaimer and no order of priority of loan repayment 1. Disclaimer: not all complaints, disputes relating to commercial contracts by the Contracting Parties to settle the complaint, and this dispute will not exempt the borrower for any obligations under the loan agreement.

2. The order of priority of loan repayment: payment for the original payments, interest rates and fees stated in the loan agreement, The loan is repaid in the order of priority on a par with any loan of the same type of business. In case the borrower only pays part of the obligation to limit, the order to favor debit will in the following order: slow interest rate charged, interest rates, lending fees back, original to the limit.

Article 24. The borrower did not transfer the right to transfer, transfer of debt obligations arising in relation to the loan, unless the consent in writing of the lending agency.

For borrower's State enterprises when conducting convert owned (shares, merged, dissolved...) The decision to restructure the business to ask reception agencies loan debt back to sign debt with lending institutions and made to repay the loan back agreement signed.

Chapter V IMPLEMENTATION of the program, the loan project is approved and implemented after the effective date of this regulation must follow the rules outlined in the regulation.

For the program, project lending that lending conditions have already been approved but not yet implemented after this regulation is in effect is continuing to apply the conditions of the loan had been approved.

The loan agreement, the loan authorization contract back, extra borrowing agreements signed prior to promulgation of this regulation remains valid value done./.