24 February 2012
On 30 December 2011, the Ministry of Finance (MOF) released Circular 201/2011/TT-BTC (Circular 201) promulgating interest rates of investment credit and State export loans and interest rate difference for calculating post-investment assistance.
Circular 201 was formulated to implement the provisions on interest rates and post-investment assistance in Decree 75/2011/ND-CP (Decree 75) dated 30 August 2011 of the Government on State investment and export credit.
For information about Decree 75, see Mayer Brown JSM's Legal Update: "Decree on State Investment and Export Credit" of 20 December 2011.
Circular 201 stipulates that:
- The interest rate of State investment loans denominated in Vietnamese dong shall be 14.4% per annum.
- The interest rate of State export credit loans denominated in Vietnamese dong shall be 14.4% per annum.
- The interest rate difference for calculating post-investment assistance applicable to loan projects denominated in Vietnamese dong shall be 2.4% per annum.
Post-investment assistance is defined in Decree 75 as the State's provision of partial support in interest rate to investors who borrow loans from credit institutions for investment in projects after such projects have been completed and become operational and the investors have paid loan debts.
The MOF will decide on post-investment assistance levels on the basis of the difference between investment loan interest rates applied by credit institutions and the State investment credit interest rates and at the proposal of the Chairman of the Board of Management of the Vietnam Development Bank.
The interest rates of State investment loans and of State export credit loans and the interest rate difference for calculating post-investment assistance apply to loan contracts and assistance contracts signed and effective as from 20 October 2011 (the effective date of Decree 75).
Circular 201 will be effective as from 15 February 2012 and replaces Circular 203/2010/TT-BTC of the MOF dated 14 December 2010 promulgating interest rates of State export and investment credit loans and the interest rate difference for calculating post-investment assistance.
For inquiries related to this Legal Update, please contact Hoang Anh Nguyen, Mai Phuong Nguyen, Cuong Nguyen or your usual contacts with our firm.
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