blue-check Conditions for borrowing loans from banks to pay wages amid Covid-19

Guidelines No. 6199/HD-NHCS dated July 8th, 2021 of the Vietnam Bank for Social Policies on lending to employers for payment of furlough and production restoration wages
Posted: 31/8/2021 10:19:51 AM | Latest updated: 8/9/2021 4:38:27 PM (GMT+7) | LuatVietnam: 5282 | Vietlaw: 525

The guidelines clarify borrowing eligibility conditions, loan limit, loan interest rate, loan term, loan guarantee, loan application, lending procedures, disbursement, etc. for enterprises to borrow loans to pay their wages to their employees according to the provisions of Resolution No. 68/NQ-CPstatus2 and Decision No. 23/2021/QD-TTgstatus2 .

Accordingly, with regard to enterprises applying for borrowing loans to pay furlough wages, they must meet the following conditions: have employees (who are participating in the compulsory social insurance) that are put on furlough for 15 consecutive days or more between May 1st, 2021 and March 31st, 2022; do not owe nonperforming loans

With regard to enterprises borrowing loans to pay employees production restoration wages, they must meet the following conditions: the borrowers have to temporarily suspend their business from May 1, 2021 to the end of March 31, 2022; operating in such sectors as transportation, aviation, tourism, accommodation services and sending Vietnamese workers to work abroad under contracts. In addition, they must have their production and business restoration plan

Enterprises are entitled to borrow loans one or multiple times for a maximum period of 03 months/employee and are entitled to borrow loans to pay both furlough wages and production restoration wages to employees (if they are eligible)

The interest rate applicable to these loans is 0%/year. Overdue loan interest rate is 12%/year.

These guidelines enter into force as from the signature date. Those not mentioned in the guidelines in this document shall be subject to the Government's Resolution No. 68/NQ-CPstatus2 , the Prime Minister’s Decision No. 23/2021/QD-TTgstatus2 and provisions of current law.

Please be informed that the attachments are neither translated nor included in the English file.
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Effective Date 8-Jul-2021
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Published Vietlaw's Newsletter No. 525
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