Preferential interest rate for re-borrowings of ODA

VGP – The PM has recently named four fields that will enjoy preferential rates of interest when re-borrowing ODA.

June 02, 2011 2:20 PM GMT+7

Construction projects of highway will enjoy preferential interest rate for relending Government’s ODA – Illustration photo

Decision to this effect will take effect on July 20.

The four fields are (1) economic-technical-social infrastructure; (2) industry; (3) finance and credit; and (4) projects in difficulties-ridden areas, areas where Khmer ethnic minority people are living, communes benefiting Program 135 on poverty reduction, and border areas belonging to Program 120 on job creation.

In the economic-technical-social infrastructure, the Government will prioritize ODA funds to projects on water supply for industrial production and urban daily consumption; urban and industrial solid waste treatment; industrial sewage treatment, procurement of medical facilities, the building of education and training centers, railways, highways, and deep-sea ports.

Three types of industrial construction projects will get ODA priority, including new and renewable power plants; power transmission in rural areas; IT and communications in rural areas.

Under Decree 78/2010/NĐ-CP, dated July 14, 2010, the aforementioned four fields will enjoy a preferential interest rate that is equivalent to 30% of re-lending interest rate in foreign currency or VND, but not lower than foreign lending interest rate./.

By Hương Giang