On March 28, 2018, the Ministry of Finance issued Circular No.30/2018/TT-BTC amending and supplementing a number of articles of the Ministry of Finance’s Circular No.75/2017/TT-BTC dated July 21, 2017 issued by The Finance Ministry amending and supplementing a number of articles of Circular No.55/2016/TT-BTC dated March 23, 2016 stipulating a number of articles on financial management of investment projects in the form of public-private partnership and cost of investor choice. This Circular took effect since May 12, 2018.

Accordingly, the Circular No.30/2018/TT-BTC has abolished the principle for determining the interest rate for capital mobilized for investment capital in the form of public-private partnership, specifically as follows:

1. Abolishing the principle that the interest rates must not be more than the average interest rates for medium-term and long-term of four state-owned commercial banks at the time of negotiating project contracts.
2. For projects that have signed contract before May 12, 2018, they shall continue to implement the signed project contracts. However, if after the above-mentiond time, the project adjusts the interest rates, the adjustment shall comply with the provisions of this Circular.

Circular No.30/2018/TT-BTC is expected to contribute to creating favorable conditions for enterprises to access more sources of capital, thereby speeding up the implementation of projects under the form of public-private partnership, creating momentum for the overall development of the country’s economy.