A new decree regulates the re-lending of ODA loans and foreign concessional loans

The Government on December 10 issued Decree No. 317/2025/ND-CP (Decree 317), amending and supplementing certain provisions of Decree No. 97/2018/NĐ-CP regarding the re-lending of ODA loans and foreign concessional loans.

The new decree introduces specific regulations for public scientific and technological organizations, as well as financially autonomous public universities, while clarifying the mechanisms for loan guarantees.

Currently, the re-lending of foreign loans by the Government does not specifically apply to "public scientific and technological organizations, financially autonomous public universities," but rather to public service units in general. Decree 317 regulates that public service units that are public scientific and technological organizations or public universities with investment projects in science, technology, innovation, and digital transformation, as outlined in the Politburo's Resolution No. 57-NQ/TW, dated December 22, 2024, and the Law on Science, Technology, and Innovation, are allowed to re-borrow 10% of ODA loans and concessional loans for these investment projects, provided they ensure regular and investment expenditures, according to public debt management laws.

Additionally, Decree 317 also stipulates that these entities are not required to provide loan guarantees, saying that  no loan guarantee is required if a public service unit, being a public scientific and technological organization or a public university, re-borrows foreign loans from the government under the provisions of Point d, Clause 2, Article 21 of this decree, and cannot provide loan guarantees with assets as per legal regulations.

In such cases, based on the proposal of the managing agency regarding the inability to provide loan guarantees with assets as per legal regulations and the appraisal opinion of the authorized re-lending agency, the Ministry of Finance will report to the Prime Minister for consideration and decision on re-lending without requiring asset guarantees as stipulated in the decree. The managing agency is fully responsible before the law for the results of reviewing the inability to provide loan guarantees with assets as per legal regulations.