Enterprises and economic organizations with healthy financial status and suffering no business loss in the last three years are eligible for foreign loans and aid.
Under the Regulation on sub-lending of Government loans and aid, promulgated together with Prime Minister’s Decision No. 181/2007/QD-TTg of November 26, eligible enterprises and economic organizations must also owe no overdue debts to credit institutions or the state budget. Also eligible for sub-loans are credit institutions and provincial/municipal People’s Committees.
Borrowers are obliged to pay loan principal, interest, sub-lending fee and other payables when due. Lending interest rate is equal to foreign loans’ interest rate plus sub-lending fee.
Borrowers other than provincial/municipal People’s Committees and credit institutions are required to mortgage assets or provide other security interests to offset credit risks.-