Enterprises’ borrowing of foreign loans and payment of foreign debts to be strictly managed

From April 15, information and data on enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee will be managed by the State Bank of Vietnam (SBV) at a website accessible via either  www.sbv.gov.vn or www.qlnh.sbv.cic.org.vn.

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Under the SBV’s Circular No. 03/2016/TT-NHNN, loans subject to registration with the central bank include foreign medium- and long-term loans; extended short-term loans with a total term of over one year; and short-term loans that are not extended but the principal has not yet been fully paid by the time of one year from the date of the first withdrawal. However, if a borrower fully pays its loan within 10 days from the date of full one year from the first withdrawal of capital, registration will not be required.

The new regulation also specifies the competence to certify registration of foreign loans.

Accordingly, the Foreign Exchange Management Department under the SBV will take responsibility for certifying the registration for foreign-currency loans exceeding USD 10 million or equivalent and Vietnam-dong foreign loans. Meanwhile, other loans will be registered with the SBV’s provincial-level branches of localities where the borrowers’ head offices are based. However, the total amount of foreign loans borrowed by enterprises must not exceed the limit of foreign commercial loans borrowed by the mode of self-borrowing and self-payment approved annually by the Prime Minister.

The new regulation will replace the SBV’s Circulars No. 09/2004/TT-NHNN of December 21, 2004, and No. 25/2014/TT-NHNN of September 15, 2014.

Source: vietnamlawmagazine.vn