On April 28, 2017, the Government issued the Government No. 52/2017/ND-CP dated April 28, 2017 of the Government on on-lending of the Government’s foreign borrowed capital to People’s Committees of centrally-affiliated cities and provinces.
Within that, the most important content is the eligibility conditions for the provincial People’s Committee’s access to on-lent capital. In particular, Eligibility conditions for the provincial People’s Committee’s access to on-lent capital. Have projects approved by competent agencies to mobilize loans for socio-economic development investment or projects funded by the local budget in the form of public-private partnerships, defined in the local budget spending scheme and the local medium-term investment plan approved by the competent authority; have projects allocated the reciprocal capital according to effective regulations; ensure that the total loan balance of the local budget at the time of appraisal of the policy of investment in the programs or projects shall not exceed the outstanding debt limit of the local budget; there is no on-lent capital from the Government more than 180 days overdue; the annual debt service obligations of the provincial People’s Committees for on-lent capital shall not exceed 10% of local budget revenue sources, which shall be distributed according to the state budget decentralization system upon the date of consideration of the on-lent capital.
The proportion of on-lent ODA financing for socio-economic development investment projects defined in the local budgets spending scheme proposed by the provincial People’s Committees shall be determined as the local jurisdiction having the ratio of funding from the Central government budget to total local government budget expenditure equaling 70% or more shall be entitled to 10% of the on-lent capital derived from the ODA loan; the local jurisdiction having the ratio of funding from the Central government budget to total local government budget expenditure ranging from 50% to below 70% shall be entitled to 20% of the on-lent capital derived from the ODA loan; the local jurisdiction having the ratio of funding from the Central government budget to total local government budget expenditure below 50% shall be entitled to 30% of the on-lent capital derived from the ODA loan; the local jurisdiction having revenues regulated into central budget (excluding Hanoi city and Ho Chi Minh City) shall be entitled to 50% of the on-lent capital derived from the ODA loan)…
This Decree takes effect on June 15, 2017.
Source: http://english.luatvietnam.vn/default.aspx?tabid=720
