GUIDELINES FOR INTEREST RATE SUBSIDY OF 2% PER YEAR FOR BUSINESSES
On 20 May 2022, the Government issued Decree No. 31/2022/ND-CP (Dec. 31) on interest rate subsidy from the state budget for loans of enterprises, cooperatives and business households. On the same day, the State Bank also issued Circular No. 03/2022/TT-NHNN (Cir. 03) guiding commercial banks to implement interest rate support according to Dec. 31 above.
𝐓𝐇𝐄 𝐓𝐄𝐑𝐌 𝐀𝐍𝐃 𝐈𝐍𝐓𝐄𝐑𝐄𝐒𝐓 𝐑𝐀𝐓𝐄 𝐒𝐔𝐁𝐒𝐈𝐃𝐘
1. The term for subsidizing loan interest rate shall start from the date of disbursement of a loan to the date on which the borrower pays off the principal and/or loan interest as agreed between the commercial bank and the customer in conformity with the announced funding resource for providing the interest subsidy, but it must not exceed 31 December 2023.
2. The interest rate subsidy for customers is 2% per year on the loan balance and loan interest subsidy terms in the prescribed periods in Clause 1 of this Article.
𝐈𝐍𝐓𝐄𝐑𝐄𝐒𝐓 𝐑𝐀𝐓𝐄 𝐒𝐔𝐁𝐒𝐈𝐃𝐘 𝐌𝐄𝐓𝐇𝐎𝐃
At the repayment time of each interest payment term, commercial banks choose to provide interest rate subsidy to customers by one of the following methods:
Directly reduce the amount of loan interest payable by the customer equal to the amount of loan interest subsidy.
Collect all loan interest from customers in the period and refund customers the amount of loan interest subsidy on the same day.
In case the collection of loan interest in the period is done after business hours of commercial banks, the refund of amount of loan interest subsidy can be done on the next day.
Commercial banks register plans of interest rate subsidy from the state budget for both 2022 and 2023 and details for each year according to the provisions of Point b, Clause 1, Article 7 of Dec. 31. The State Bank of Vietnam determines the interest rate subsidy limit for each commercial bank according to registration or according to the proportion of loans balance until 31 December 2021, but not to exceed 40,000 billion VND.
The Dec 31 and Cir. 03 shall come into force from 20 May 2022.