Decision 52/1998/QĐ-TTg

DECISION No.52/1998/QD-TTg of March 3, 1998 on the implementation of 1998 investment credit plan.

Subjects eligible for loans under the 1998 investment credit plan include:

- Projects left with incomplete loans, or projects with credit loan contracts already signed in 1997 and included in the 1998 loan plan; adequate capital must be provided therefor so as to ensure the construction tempo;

- New investment projects in such priority industries as: electricity, mechanical engineering, export goods production, off-shore fishing, processing of agricultural, forest and marine products, planting of perennial industrial trees or materials forests, and communication infrastructure; industrial parks and new urban centers with charges to be collected and the possibility of capital retrieval; priority shall also be given to investment projects of provinces in mountainous, deep-lying and remote areas;

- Investment credit loan capital under the 1998 State plan shall not be lent for capital contributions to joint ventures with foreign parties or for payment of medium- and long-term debts of credit institutions.

The lending interest rate of 0.81% / month shall be applicable to loans in VND and 8.5% / year to loans in foreign currencies - The loan term shall include a grade period (construction duration), the debt payment time limit shall be determined in conformity with the projects' capital retrieval time limit and the capability of paying debts of the enterprises, but not exceeding 10 years.

The projects which borrow investment credit capital according to the State's plan shall be entitled to secure the debts with assets created by the borrowed capital. Unless their debts are fully paid, the enterprises shall not be entitled to transfer, purchase and sell, or mortgage assets belonging to the investment credit capital borrowed according to the State's plan.

The Ministry of Planning and Investment shall assign capital borrowing plan to each project of Group A, the list of Group-B projects and the total capital for projects of Groups B and C. The ministries, the People's Committees of the provinces and cities directly under the Central Government and the corporations established under Decision No.91-TTg shall allocate capital to each project of Group B or C and register it with the loan providers.

The capital borrowing plans shall be adjusted only once by the third quarter of 1998.- (Summary)