Takes effect on May 15, 2017, the Decree No. 32/2017/ND-CP dated March 31, 2017 of the Government on state investment credit, prescribing that the maximum state investment loan for a project is 70% of the total investment capital of such project (excluding liquid capital).
Also in accordance with this Decree, the total outstanding loan balance of the Vietnam Development Bank (including state investment loans) for a borrower, and for a borrower and its affiliated persons, except for special projects decided by the Prime Minister, must not exceed 15% and 25% of the Bank’s equity capital, respectively. On loan terms, loan terms shall be determined according to the capital recoverability of projects and debt payment ability of borrowers to suit production or business characteristics of projects but must not exceed 12 years. Particularly for group-A investment projects, the maximum loan term is 15 years.
When borrowing state investment loans for investment in projects, borrowers shall provide loan security at the Vietnam Development Bank. When borrowing state investment loans for investment in projects, borrowers shall provide loan security at the Vietnam Development Bank. The overdue debt interest rate for a project shall be considered and decided by the Vietnam Development Bank but must not exceed 150% of the undue loan interest rate.
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