Circular No//TT-NHNN Guiding the foreign borrowing and repayment by Please download the circular here: 09__TT-NHNN. Circular 25 replaces in part Circular 09//TT-NHNN dated December on foreign loans and Circular 25//TT-NHNN dated The new Circular will take effect from 15 April, and replace Circulars 09//TT- NHNN and 25//TT-NHNN, thereby consolidating the regulations on this.
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These banks are responsible for effectively using such loans for the right purpose and bear all the risks associated with the loans.
If there is an agreement to amend the foreign loan agreement which is not contrary to current law and which retains or reduces the loan quota, then the State commercial bank must sign an amendment agreement and register it pursuant to current regulations on management and repayment of foreign loans borrowed by enterprises i. In case of refusal, the State Bank shall state the reasons therefor. Competence to certify foreign loan and loan repayment registration or change registration: The licensed banks must comply with the following regulations when effecting capital withdrawals and foreign loan repayments for enterprises: Periodically or when necessary, the State Bank and relevant agencies shall inspect the situation of foreign loans and loan repayment by enterprises.
For foreign-invested enterprises, apart from the conditions prescribed at Point 13 a and Point 14, Section I, Chapter II of this Circular, they may sign short-term loan contracts only when satisfying the following conditions: The SBV must, within 15 working days from receipt of a complete and valid file from a State commercial bank, provide written consent or non-consent to a foreign loan or to a plan on issuance of international bonds.
Foreign exchange control applicable to state commercial banks borrowing foreign loans
The regulations on procedures for registration and registration of changes in overseas loans, including documental procedures and dossiers of registering loans. Enterprises must produce to the licensed banks where they make the loan repayment the following documents:.
Guiding foreign loans and loan repayment by enterprises Updated: In this Circular, the phrases below shall be understood as follows: For any amendment made after this date, the relevant State commercial bank must be compliant with the provisions of Circular In principle, State commercial banks are only allowed to contract foreign loans upon written approval of the SBV. A dossier of foreign loan, and loan repayment registration for enterprises being nhhn than credit institutions shall include: Effectiveness Circular 18 will take effect as from 15 October Prior consent from the SBV to borrowing foreign loans is a must Prior to entering into a foreign loan agreement or submitting a request for certification of the quota on issuing international bonds, a State commercial bank must 099 lodge with the SBV Department of Foreign Exchange Control or send to it by post, one set of a file requesting the SBV’s consent to borrowing the foreign loan or to the plan on issuing international bonds.
Enterprises may get short-term loans tg addition to their working capital without calculating them into the maximum control limits of the total investment capital prescribed in the investment licenses.
The reports are made according to a set form. Share Facebook Twitter Linked In. Foreign loan-borrowing enterprises hereinafter called enterprises include: Circular 18 applies to State commercial banks and to other organisations and individuals related to or involved in the borrowing of non-Government guaranteed foreign loans by State commercial banks. The enterprises must register the changes with the State Bank within 30 working days as from the date of signing the change agreements and before the changes take effect.
Enterprises being credit institutions may sign medium- long-term foreign loan contracts only when satisfying the following conditions: In cases nhn enterprises do not withdraw capital but only make loan repayment through the licensed banks, within 5 working days as from the date of withdrawing the capital, the enterprises must notify in writing the licensed banks where the enterprises make the loan repayment of the capital withdrawal date and the ttt capital amounts under foreign loan contracts.
Registration of foreign loans and of changes in foreign loans After obtaining ty SBV’s consent, the State commercial bank will sign the foreign loan agreement and other relevant documents.
Reporting on the situation of medium- long-term loans and loan repayment according to a set form. The regulations on the reporting regime of borrowers, credit institutions, foreign bank branches and SBV branches of provinces and the cities directly under the central government This Circular will take effect on November 1 stand supersedes Article 1 of Circular No.
Foreign exchange control applicable to state commercial banks borrowing foreign loans – Lexology
Circular 18 provides for the principles, sequence and procedures for assessing and implementing the borrowing of non-Government guaranteed foreign loans by State commercial banks. New Legislation Decision No. The SBV will accept the registration of a foreign loan for the State commercial bank within 5 working days from the date of receipt of a bhnn application file.
If you would like to learn how Lexology can drive your content marketing strategy forward, please email enquiries lexology. Foreign loan means a medium- or long-term foreign loan namely a loan with a term above one year borrowed by a State commercial bank from a foreign credit institution or foreign financial institution which is not a resident of Vietnam, or a foreign loan borrowed by a State commercial bank in the form of issuing international bonds on the international capital market.
Circular No.09/2004/TT-NHNN Guiding the foreign borrowing and repayment by enterprises
For syndicated loans borrowed by enterprises from credit institutions operating in Vietnam and foreign lending parties, regarding the foreign loans, the enterprises must comply with the provisions of this Circular. Send Us Your Comments: Any foreign loan borrowed by State commercial banks for which registration including registration of amendments was made prior to 15 October will continue to be implemented pursuant to the SBV’s registration certificate.
When making capital withdrawal, loan repayment via licensed banks, enterprises must comply with the following regulations: Upon obtaining nhnnn SBV’s approval on the plan for the international bond issue pursuant to Circular 18, the issuing bank must follow the procedure for obtaining the certification of the quota and registration of the international bonds value in accordance with the SBV’s guidelines on foreign exchange control applicable to issuance of international bonds i.
To satisfy the borrowing conditions stipulated by the State Bank Governor: After obtaining the SBV’s consent, the State commercial bank will sign the foreign loan agreement and other relevant documents. Any foreign loan agreement signed by a State commercial bank but for which registration is not made prior to 15 October 2040 be registered pursuant to guidelines of the SBV provided for each specific case.
Enterprises signing foreign loan contracts bear self-responsibility for the legal capacities, financial capabilities, loan contract-performing capabilities of the foreign lending parties.
Besides, for short- medium- or long-term loans, the enterprises shall have to produce other necessary documents and dossiers when so requested by the licensed banks.
Prior to entering into a foreign loan agreement or submitting a request for certification of the quota on issuing international bonds, a State commercial bank must directly lodge with the SBV Department of Foreign Exchange Control or send to it by post, one set of ty file requesting the SBV’s consent to borrowing the foreign loan or to the plan on issuing international bonds.
Determining “fair market value” in a distressed market: Vietnam October 12 Enterprises including licensed banks shall report thereon according to the provisions of this Circular. My saved default Read later Folders shared with you. Non-residents shall be understood according to the provisions of Vietnamese legislation on foreign exchange management.