Lending ODA funds
On 14 July 2010 the Government issued Decree No. 78/2010/ND-CP on re-lending foreign loans, which will come into force on 30 August 2010 and abrogates Decision No.181/2007/QD-TTg.
Decree 78 stipulates some noteworthy provisions as follows: (i) Foreign loans eligible to re-lending are ODA loans, foreign commercial loans and foreign preferential loans; (ii) Borrowers may select Vietnamese currency (Viet Nam dong) or the original foreign loan currency as the re-lending currency, subject to the purpose of the loan and credibility of the borrower; (iii) The re-lending interest rate is the foreign loan interest applicable to the Government in case of foreign commercial loans and foreign preferential loans. For ODA loans, interest shall be determined on case-by-case basis depending on the the domestic borrower, kind of projects and the currency used for the loan; and (iv) The Ministry of Finance or the financial organisation or credit institution authorised by Ministry of Finance shall be responsible for the evaluation and decision on re-lending.
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