Tax debtors still guaranteed for loans at commercial banks

The government has issued Decision 60/2009/QĐ-TTg amending the regulations on guarantees for enterprises to borrow capital at commercial banks issued on January 21, 2009 (Decision 14/2009/QĐ-TTg).

Accordingly, companies of all economic sectors, including cooperatives, which have chartered capital of no more than VND20 billion and employ less than 1,000 workers will be guaranteed by the Vietnam Development Bank (VDB) to borrow capital from commercial banks.

Previously, the enterprises eligible for VDB’s credit guarantee were enterprises that had chartered capital of under VND20 billion and employed under 500 employees.

Notably, companies that have tax debts will be still guaranteed for loans. Enterprises that have overdue debts at credit institutions but have investment projects and commit to pay the overdue debts will be considered for guarantees.

Businesses can use loan-based assets as mortgaged assets to borrow capital from commercial banks.

Once the guarantor issues a guarantee certificate, banks don’t have to re-verify whether the borrowers meet conditions for credit guarantee or not.

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