On November 7, 2023, the Government issued Decree No. 78/2023/NĐ-CP on amendments to some articles of the Government’s Decree No. 32/2017/ND-CP dated March 31, 2017 on State investment credit.
Thereby, a borrower must fully satisfy the following conditions:
- Having full legal capacity and having carried out the prescribed investment procedures.
- The client does not incur any bad debt owed to any credit institution or foreign branch bank at the time VDB considers deciding to grant loan.
- Its equity capital for the project execution accounts for at least 20% of the total investment capital for the project (exclusive of working capital). The specific amount that shall be considered and decided by VDB within the investor’s financial capacity and project’s debt payment plan.
- Providing loan security under Decree No. 32/2017/ND-CP and relevant regulations.
+ Loan limit:
- The maximum state investment loan for a project is 70% of the total investment capital of such project (excluding liquid capital).
- The State investment credit interest rate shall be decided by VDB, but is not lower than 85% of the average lending interest rate of domestic commercial banks in the same period; the subsidies on interest rates and management costs for these loans will not be covered by the state budget.
This Decree takes effect from December 22, 2023.
