Decision No. 11/2022/QD-TTg dated April 27, 2022 on Extending credit to private pre-schools and primary schools affected by COVID-19 pandemic

DECISION

EXTENDING CREDIT TO PRIVATE PRE-SCHOOLS AND PRIMARY SCHOOLS AFFECTED BY COVID-19 PANDEMIC

Pursuant to the Law on Government Organization dated June 19, 2015, the Law on amendments to the Law on Government Organization and the Law on Organization of Local Government dated November 22, 2019;

Pursuant to the Law on public investment dated June 13, 2019;

Pursuant to the Law on Education dated June 14, 2019;

Pursuant to the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly prescribing fiscal and monetary policies for supporting socio-economic recovery and development program;

Pursuant to the Government’s Decree No. 78/2002/ND-CP dated October 04, 2002 prescribing extension of credit to the poor and other policy beneficiaries;

At the request of the Minister of Education and Training;

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Article 1. Scope

This Decision introduces polices on extension of credit by Vietnam Bank for Social Policies (VBSP) to private pre-schools and primary schools under the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly prescribing fiscal and monetary policies for supporting socio-economic recovery and development program (hereinafter referred to as “Resolution No. 43/2022/QH15”) and the Government’s Resolution No. 11/NQ-CP dated January 30, 2022 introducing the socio-economic recovery and development program and implementing the Resolution No. 43/2022/QH15 of the National Assembly prescribing fiscal and monetary policies for supporting this program (hereinafter referred to as “Resolution No. 11/NQ-CP”).

Article 2. Regulated entities

1. Vietnam Bank for Social Policies (VBSP).

2. Borrowers that are juridical persons and individuals eligible to get loans as prescribed in Clause 1 Article 3 of this Decision.

3. Other relevant organizations and individuals.

Article 3. Borrowers and eligibility requirements for a loan

1. Borrowers

Private pre-schools and primary schools, including: independent junior kindergarten classes, independent senior kindergarten classes and independent pre-school classes operating in private form (hereinafter referred to as “private pre-school institutions”), junior kindergarten centers, senior kindergartens and combined kindergartens operating in private form (hereinafter referred to as “private kindergartens”), and private primary schools as prescribed by law.

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a) It is established and operating in accordance to regulations of law.

b) Its operation has been suspended for at least 01 month by the time of application for loan to meet COVID-19 prevention and control requirements.

c) It has a borrowing plan made using Form No. 01 in the Appendix enclosed herewith and appraised by VBSP.

d) At the time of application for loan, it has not incurred any bad debts at credit institutions or foreign bank branches before January 23, 2020.

Article 4. Lending method

VBSP shall consider granting loans directly to eligible borrowers.

Article 5. Loan purposes

Borrowed funds shall be used for repairing facilities, purchasing medical devices and supplies to serve COVID-19 prevention and control, and purchasing equipment necessary for provision of care and education for students so as to recover and maintain the borrower’s operation.

Article 6. Loan limit

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2. A maximum loan amount granted to a private kindergarten or a private primary school is VND 200 million.

3. VBSP shall determine the specific loan amount granted to each borrower depending on its borrowing plan specified in Point c Clause 2 Article 3 of this Decision.

Article 7. Currency unit used for granting loans and repaying debts

The currency unit used for granting loans and repaying debts is VND.

Article 8. Loan term

A maximum loan term is 36 months.

Article 9. Lending interest rate

1. The lending interest rate is 3,3%/year.

2. The interest rate charged on overdue debts is equal to the lending interest rate on loans granted to poor households at the time of application for loan.

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1. When applying for a loan with the loan amount up to VND 100 million in accordance with regulations of this Decision, the borrower must not provide security for their loan.

2. When applying for a loan with the loan amount of VND 100 million or more, the borrower must provide security for their loan in accordance with VBSP’s regulations.

1. The maximum fund used for granting loans under this Decision is VND 1.400 billion and is derived from the fund earned from issuance of Government-backed bonds by VBSP in accordance with Resolution No. 11/NQ-CP.

2. Borrowed funds shall be used in accordance with the Resolution No. 43/2022/QH15, the Resolution No. 11/NQ-CP and relevant guiding documents.

3. Borrowed funds shall be disbursed by December 31, 2023 or until the fund used for granting loans as prescribed in Clause 1 of this Article has been used up, whichever comes first.

Article 12. Extension of loan term, debt classification and management of risky debts

Regulations on extension of loan term, debt classification and management of risky debts applied by VBSP shall prevail.

Article 13. Loan application, sequences and procedures for granting loans to private pre-school institutions and private primary schools

1. An application for loan includes:

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b) Copies of documents relevant to the applicant’s operational type: Decision on approval of establishment issued by a competent authority; decision to grant permission for education activities of a private kindergarten or private primary school; documents proving the status of the borrower's lawful representative.

c) Letter of authorization (if any).

2. The application for loan shall be submitted to VBSP's branch of province or city where the applicant is established and registered.

3. Within 05 working days, if the loan does not require loan security, or 10 working days, if the loan requires loan security, from the receipt of adequate application, VBSP shall consider approving the application. If an application is refused, written reasons for such refusal must be given.

Article 14. Reporting on loans granted to private pre-school institutions and private primary schools

1. On quarterly and annual basis and upon the expiry of the program period, VBSP shall submit reports on its grant of loans which are made using Form No. 02 in the Appendix enclosed herewith to the Ministry of Education and Training.

2. Reporting deadlines, data closing duration and submission methods:

a) Reporting deadlines:

- A quarter report shall be submitted within 15 days from the end of the reporting quarter;

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- The report on completion of the program shall be submitted within 60 days from the expiry of the program period.

b) Data closing duration of quarterly and annual reports: A quarterly or annual report shall include data collected from the first date to the ending date of the reporting quarter or the reporting year.

c) Date closing duration of the report on completion of the program: This report shall include data collected from the effective date of this Decision to December 31, 2023 or the day on which the fund used for granting loans has been used up, whichever comes first.

d) Reports shall be submitted adopting one of the following methods:

- Directly in the form of paper report;

- By post in the form of paper report;

- By email or through specialized reporting software system;

- Other methods as prescribed by law.

Article 15. Implementation organization

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2. VBSP shall:

a) Provide borrowers with instructions on loan application, sequences and procedures for getting loans which must be simplified, clear, feasible, open and transparent.

b) Grant loans to eligible borrowers and ensure loan purposes as prescribed in this Decision.

c) Carry out inspection of borrowers’ use of borrowed funds and debt repayment as prescribed.

d) Submit periodical reports on grant of loans to the Ministry of Education and Training as prescribed in Article 14 of this Decision.

dd) Based on actual implementation of the program and at least 01 month before the fund used for granting loans specified in Clause 1 Article 11 of this Decision, publish the estimated ending date of disbursement on its website and at its headquarters, and also notify the same to the Prime Minister and Ministry of Education and Training.

e) Cooperate with ministries and regulatory authorities, and request competent authorities to promptly deal with difficulties that arise during the grant of loans according to this Decision.

3. The Ministry of Education and Training shall play the leading role in proposing amendments to this Decision (where necessary) to the Prime Minister.

4. Provincial People’s Committees shall direct Commune-level People’s Committees to verify borrowers’ fulfillment of eligibility requirements laid down in Point b Clause 2 Article 3 of this Decision.

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Article 16. Taking actions against violations

Regulatory authorities, organizations and individuals that take advantage of the policies specified in this Decision for seeking personal interests or violating regulations of law shall, subject to the nature and severity of their violations, pay compensation for damage, be disciplined, or face administrative penalties or criminal prosecution as prescribed by law.

Article 17. Implementation

1. This Decision comes into force from the day on which it is signed.

2. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of Provincial People’s Committees, Chairperson of the Board of Directors and General Director of VBSP shall be responsible for the implementation of this Decision.

PP. PRIME MINISTER
DEPUTY PRIME MINISTER




Le Minh Khai