DECISION

ON AMENDMENT, SUPPLEMENT OF SEVERAL ARTICLES OF THE DECISION NO. 14/2009/QD-TTG DATED 21 JANUARY 2009 OF PRIME MINISTER ON THE ISSUANCE OF THE REGULATION ON PROVIDING GUARANTEE TO ENTERPRISES WHICH BORROW CAPITAL FROM COMMERCIAL BANKS

THE PRIME MINISTER

- Pursuant to the Law on the Governments organization dated 25 December 2001;
- Pursuant to the Law on the State Budget dated 16 December 2002;
- Pursuant to the Law on Credit Institutions dated 12 December 1997 and the Law on the amendment, supplement of several articles of the Law on Credit Institutions dated 16 May 2004;
- Pursuant to the Decree No. 90/2001/ND-CP dated 23 November 2001 of the Government on giving support to the development of medium and small enterprises;
- Pursuant to the Resolution No.30/2008/NQ-CP dated 11 December 2008 of the Government on urgent solutions for preventing from economic recession, maintaining economic growth, ensuring social security;
Upon the proposal of the Minister of Finance,

DECIDES:

Article 1. To amend paragraph 1 and supplement paragraph 3 Article 3 of the Decision No. 14/2009/QD-TTg dated 21 January 2009 of the Prime Minister as follows:

1. To amend paragraph 1 of Article 3 as follows:

1. To amend, supplement paragraph 2, Article 15 of the Decision No. 193/2001/QD-TTg dated 20 December 2001 by paragraph 5, Article 5 of the Regulation issued in conjunction with this Decision.

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3. To replace Article 18 of the Decision No. 193/2001/QD-TTg dated 20 December 2001 by paragraph 1, Article 8 of the Regulation issued in conjunction with this Decision.

Article 2. To amend, supplement several articles of the Regulation on providing guarantee to enterprises which borrow capital from commercial banks issued in conjunction with the Decision No. 14/2009/QD-TTg dated 21 January 2009 of Prime Minister as follows:

1. To amend Article 1 as follows:

Article 1. Subjects entitled to enjoy loan guarantee

Subjects who are entitled to enjoy loan guarantee from Vietnam Development Bank shall be enterprises of all economic sectors (including Cooperatives) of which charter capital is not higher than 20 billion dong and which employ less than 1,000 laborers (hereinafter referred to as enterprises).

2. To amend paragraph 2, Article 2 as follows:

2. Those enterprises which borrow capital for realizing product, business projects or plans in areas of consulting, real estate trading (except for projects of building houses for selling to people with low income; accommodation for lease to workers and students; building cemetery), securities trading; which borrow money for making loan payment of other credit contracts, shall not be entitled to enjoy guarantee.

3. To amend paragraph 3, Article 5 as follows:

3. To have no overdue debt at credit institutions. If an enterprise is owning overdue debts to credit institutions, but it has investment projects, business, production plans and undertakes to be able to make payment of overdue debts, the Guaranteeing Party shall appraise and decide on the provision of loan guarantee to such enterprise in accordance with this Regulation.

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5. To amend paragraph 6, Article 5 as follows:

6. To use assets created from loan fund to realize investment project for pledge, security, guarantee at the guaranteeing Party.

6. To amend Article 7 as follows:

Article 7. Term of loan guarantee

The term of loan guarantee shall be in line with the loan term of the guarantee receiving Party (including the time of loan rescheduling, if any).

7. To amend paragraph 3, Article 10 as follows:

3. Based on the application for loan of the enterprise and the written notice of guarantee approval of the guaranteeing Party, the guarantee receiving Party shall consider and sign a credit Contract with the said enterprise. The Guarantee Receiving Party shall not be required to appraise again the conditions stipulated in Article 5 of this Regulation.

8. To amend item k, paragraph 1, Article 14 as follows:

k. To refuse performing guarantee obligation where the guaranteed Party uses loan funds, assets created from loan funds for the wrong purpose.

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b. To inspect, supervise the use of loan funds and assets created from loan funds by the guaranteed Party to ensure such loan funds and assets to be used for the right purpose as committed in the credit Contract in a safe and efficient manner.

10. To amend the first dash of paragraph 3, Article 15 as follows:

- To provide guidance to and have mechanism on facilitating commercial banks in the application of loan interest rate with guarantee which is lower than the common loan interest rate of the commercial banks in order to ensure the preference of the actual loan interest rate to borrowing enterprises;

Article 3. This Decision shall be effective since the date of signing.

Article 4. Ministers, Heads of Ministerial level agencies, Heads of Governmental agencies, Chairperson of the Peoples Committee of provinces, cities under the Central Governments management, Chairperson of the Management Board, General Manager of Vietnam Development Bank shall be responsible for the implementation of this Regulation.

PRIME MINISTER




Nguyen Tan Dung