Enterprises and individuals are supported with interest rates when implementing green and circular projects.

Accordingly, the subjects of application are the State financial fund outside the budget with lending activities established, organized and operated in accordance with the provisions of law and customers borrowing capital from the State financial fund with loans that fully meet the conditions for interest rate support from the state budget as prescribed; the management agency of the State financial fund outside the budget; other relevant agencies, organizations and individuals.

Banks are also promoting green credit lending.

Non-budgetary state financial funds include: Small and medium-sized enterprise development fund; Vietnam Environmental Protection Fund; Local Environmental Protection Fund; Vietnam Cooperative Development Support Fund and Local Cooperative Development Support Fund; Vietnam Farmers Support Fund and Local Farmers Support Fund); Local Development Investment Fund; other non-budgetary state financial funds with lending activities established by competent state agencies according to the provisions of law.

According to the draft, customers borrowing capital from the State Financial Fund outside the budget will receive interest support from the state budget for loans that fully meet the following conditions:

The loan is used to implement a project that is confirmed by a competent authority or organization to meet the criteria of a green, circular project and applies the environmental, social, and governance (ESG) standards framework as prescribed in the Prime Minister's decision and is on the List of green, circular projects and applies the environmental, social, and governance (ESG) standards framework published on the Electronic Information Portal of the Ministry of Agriculture and Environment .

The loan has not received interest rate support from the state budget under other policies and has a minimum loan interest rate of 2%/year.

Disbursed by the State non-budgetary financial fund and having outstanding debt since the effective date of this Decree.

Customers use loan capital for the right purpose as prescribed.

The draft clearly states that interest rate support will not continue to be provided under this regulation for: Loans with overdue principal balances or loans with extended debt; loans for project implementation that are no longer on the List of green, circular projects and apply the environmental, social, and governance (ESG) standards framework published on the Electronic Information Portal of the Ministry of Agriculture and Environment.

The loan interest support period is determined from the disbursement date to the time the customer fully repays the principal and/or interest of the loan according to the agreement between the State non-budgetary financial fund and the customer.

The interest rate support level for customers is 2%/year, calculated on the loan balance and the interest rate support period according to the above regulations.

The State budget provides interest rate support for customers borrowing capital through the State Financial Fund outside the budget and pays the interest rate support amount to the State Financial Fund outside the budget according to regulations.

Every month, the State non-budgetary financial fund calculates the interest support amount and directly deducts it from the interest payable by the borrower.

The funding source for implementing interest rate support through the central extra-budgetary State financial funds under the management agency of the centrally managed Fund is arranged from the public investment source of the central budget.

The funding source for implementing interest rate support through local extra-budgetary State financial funds under the management agency of the Fund managed by the locality is arranged from public investment sources in the local budget.

Source: https://baodautu.vn/doanh-nghiep-ca-nhan-duoc-ho-tro-lai-suat-khi-thuc-hien-du-an-xanh-tuan-hoan-d399890.html