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SERVICES
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SERVICE CHARGES
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EXCHANGE RATE
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INTEREST RATES
(Ha Noi)
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Deposit interest rates USD
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For reference only.
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KKH
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0.10%/year
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3 months
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2.90%/year
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6 months
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3.20%/year
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9 months
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3.40%/year
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12 months
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3.70%/year
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18 months
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3.70%/year
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24 months
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4.00%/year
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36 months
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4.00%/year
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Deposit interest rates VND
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For reference only.
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KKH
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2.40%/month
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3 months
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10.00%/month
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6 months
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10.10%/month
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9 months
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10.20%/month
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12 months
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10.30%/month
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18 months
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10.40%/month
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24 months
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10.40%/month
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36 months
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10.40%/month
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SERVICES |
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FINANCIAL
INSTITUTION CUSTOMER
:
Rural Finance Project II
(Credit Facility
No. 3648-VN)
1. About the Project
Rural Finance
Project II was built on the foundation of the successful experience
of Rural Finance Project I. At Decision No. 285/QD- TTg dated Apr
18, 2002, the Government’s Prime Minister decided to invest in Rural
Finance Project II and appointed the State Bank of Vietnam to be the
Regulatory body and BIDV to be the Project Owner (Wholesale Bank).
The project was also implemented in the model of credit wholesale.
The Credit line agreement for the project ( Credit Facility no.
3648-VN) was signed on Sep 9, 2002
and took effect since Apr 14th 2003
1.1. Project’spackages
According to the Agreement, World Bank would fund an approximate
amount of USD 200 million for the project , which would be
allocated in 2 packages :
-
The
credit package (totaling USD 189.7 million) and consists of 2
subpackages: (i) Rural Development Fund II (RDFII) with the fund
of USD 165.7 million , (ii) Micro Lending Finance ( MLF) with
the fund of USD 24 million and
-
The
Institutional Capability Enhancement package for banks involved
in the Project with the fund of 10.3 million USD.
1.2.
Project implementation scope
The project lending scope
spreads all over the country, except for the urban areas of 4 big
cities namely Hanoi, Haiphong, Danang and Hochiminh city
1.3. Project duration (5 years)
This project will finish
in Mar 2008. However, like the Rural Finance Project I, the turnover
fund of Rural Finance Project II (established under the principal
repayment from banks involved in the Project) will be available
until 2007 and will continue to be lent to
Credit institutions to achieve objectives of the project.
2.
Parties to the Project
2.1. Bank for Investment and Development of Vietnam
Transaction
Center III acts as the wholesale Bank of the project to relend
provided fund to selected Credit Organizations.
2.2. Selectable credit organizations
include:
2.3.
Eligible end borrower
3. Eligible micro projects
Eligible micro
projects are feasible projects or initiatives to develop rural
agricultural economics in the country, except for the urban areas of
four big cities namely Hanoi, Haiphong, Danang and Hochiminh. In
concrete:
-
Rural
agricultural and industrial lines in agro product and sea food
processing
-
Traditional lines of business such as garments, embroidery,
handicraft..
-
Production- trade supporting lines of business such as
transportation, mechanical processing and construction in rural
areas.
Those businesses which donot directly serve rural and agricultural
economic evelopment, consumption loan, real estate speculation and
operations which have bad effect on the environment are uneligible
for the project’s loans.
4. Wholesale- Retail Interest
4.1.
Whole sale interest
-
VND loan:
Interest rate that BIDV applies to other Credit institutions is
the current basic interest rate minus one margin. This “margin”
is kept fixed in 3 months and it is calculated by subtracting
the 3 months, 6 months, 12 months weighted average interest from
the current basic interest, which has to meet the requirement of
mandatory reserves stipulated by the State Bank (not lower than
5%/year)
-
USD loan:
In certain cases, BIDV may lend USD to
other Credit Institutions at the interest rate of Libor plus an
amount, but not lower than 2.75%/ year.
4.2.
Retail interest
Credit Institutions are
free to determine interest rate to the end borrowers, relevant with
the interest rate policy of each credit institutions.
5. Scope and limit of the finance
5.1. Rural Development Finance (RDF II)
The loan value to an end borrower mustnot excede 5% the equity of
BIDV
5.2 Micro lending Finance (MLF)
The loan value to a micro project mustnot excede the equivalent of
USD 400 for individual/ household borrower and USD1,000 for family
enterprise borrower who employs at least 3 non family workers (
Exchange rate at the relent date is applied)
6. Rights and obligations of credit institutions when joining the
project
6.1. Rights
-
No
mortgages or collateral
-
Stable, long term finance up to 15 years at relevant interest
rate
-
Participating in a World Bank Project improves credibility of
the credit institution, facilitates resources mobilization and
credit, service improvement.
-
Being
able to reborrow project’s finance from Transaction Center III-
BIDV to perform training activities at preferential interest
(0.75%/year) and long term ( 25 years with 8 years in grace)
6.2. Obligations
-
Manage
and use the capital under Vietnam’s law provided the institution
keeps right borrowing objects, right objectives of the Project
and bears all the responsibilities for loan related credit risks
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Repay
principal and interest on due date
-
Credit
institution need to join by its own fund with at least 10% total
cost of each micro project when it relends to the end borrower
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Perform report duty as stipulated by WB and wholesale bank.
7. Project joining procedure
7.1. Credit institutions who wish to join Rural Finance Project II
and make use of its fund to relend need to send Transaction Center
III- BIDV an application file to serve as the basis for selection,
including:
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An
original request form to join the Project signed by Board of
Directors Chairman (or General Director)
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An
orignal Board of Directors’ resolution to join RDF II or MLF
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Establishment permission, article, operating licence, business
registration ( notarized copy)
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List
of shareholders and shares (stamped by the institution)
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Annual
reports of 3 recent years and supplementary reports detailing
such annual reports ( notarized copy)
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Model
of the bank’s structure ( signed and stamped by the General
Director)
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Preliminary report on the bank’s approving and lending procedure
to rural borrowers ( signed and stamped by the General Director/
Director)
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Plans
and programs in the coming year ( signed and stamped by the
General Director/ Director)
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Financial projection in the coming year ( signed and stamped by
the General Director/ Director)
7.2 After obtaining in full the above- mentioned documents, BIDV
will proceed to examine the application following WB’s required
financial criteria.
8. List of Credit Institutions selected to join the Rural
Finance Project II
1. Vietnam Bank for Agriculture and Rural Development
2. Mekong Housing Bank
3. Asia Commercial Bank
4. East Asia Commercial Bank
5. Phuong Nam joint stock Bank
6. Sacombank
7. Saigon commercial bank
8. Vietnam International Bank
9. Phuongdong joint stock commercial bank
10. Technical and commercial joint stock bank
11. Nam A joint stock commercial bank
12. Hanoi joint stock commercial bank
13. Military joint stock commercial bank
14. Dai A joint stock commercial bank
15. Nhon Ai joint stock commercial bank
16. My Xuyen joint stock commercial bank
17. Kien Long joint stock commercial bank
18. Rach Kien joint stock commercial bank
19. Central People’s credit fund
9. For further information, please contact:
-
Director of
Transaction Center III- BIDV
Nguyen Huy Tua
Tel.: (04) 2200577
Fax: (04) 2200569
Email:
sgd3@hn.vnn.vn
-
Address of
Transaction Center III- BIDV
11 fl,
Vincom tower block A
191 Ba Trieu HaiBaTrung Dist, Hanoi
Tel.: (04) 2200570
Fax: (04) 2200569
Email:
sgd3@hn.vnn.vn
-
General information
about the Project
Project
Management Division – Transaction Center III- BIDV Tel.: (04)
2200571
-
Information on the
procedure of selecting credit organizations to join the project:
Selecting Division, Transaction Center III- BIDV Tel.: (04)
2200581
-
Information on the lending and sponsoring of micro projects
Appraisal Division, Transaction Center III- BIDV Tel.: (04)
2200572
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Overview
