On June 30, 2018 the government issued Decree No.97/2018/NĐ-CP regulates on re-lending ODA (Official Development Assistance – ODA) capital, foreign preferential capital of the government. This Decree takes effect from July 01, 2018.
Accordingly, Decree No.97/2018/NĐ-CP provides the rate of re-lending of ODA and preferential loans capital, as follows:
1. For People’s Committee of province.
– The re-lending rate is 30% of ODA loan capital, preferential loan capital to the locals which have rate of the central budget compared with the local budget balance from 70% or more.
– The re-lending rate is 40% of ODA loan capital, preferential loan capital to the locals which have balanced ratio of the central budget compared with the total local budget balance from 50% to under 70%;
– The re-lending rate is 50% of ODA loan capital, preferential loan capital to the locals which have balanced ratio of the central budget compared with the total local budget balance to under 50%;
– The re-lending rate is 50% of ODA loan capital, preferential loan capital to the locals which are with the balanced central budget (exclude Hanoi City and Ho Chi Minh City);
– The re-lending rate is 100% of ODA loan capital, preferential loan capital to Hanoi City and Ho Chi Minh City;
– The Minister of Finance shall announce the rate of re-lending of ODA loan capital and preferential loan capital for each province or centrally run city for each period of budget stabilization before January 1 of the first year of the period stabilize the budget.
2. For public non-business units:
– The re-lending rate is 100% of ODA loan capital, preferential loan capital use for investment projects for public non-business units shall self-finance all regular expenditures and investment funds;
– The re-lending rate is 100% of ODA loan capital, preferential loan capital use for investment projects for public non-business units shall self-finance all regular expenditures and a part of investment funds;
3. For enterprises
Enterprises that are enough conditions to re-lending all ODA loan capital, preferential loan capital to use for investment project, but not exceed 70% of the total investment approved by competent authorities.
By specific regulations on re-lending rates for each target group, Decree No.97/2018/NĐ-CP is considered as a basis for state agencies as well as enterprises to carry out ODA re-lending procedures for preferential loans, thereby reducing the negative issues arising in the allocation of local concessional loans.