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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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.
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 complete application file.
To satisfy the borrowing conditions stipulated by the State Bank Governor: Foreign loan contracts means foreign-loan agreements with capital-withdrawing effect, which prescribe the terms and conditions of foreign loans, such as contracts on deferred-payment goods purchase, credit contracts, financial-leasing contracts and other foreign-loan agreements.
Non-residents shall be understood according to the provisions of Vietnamese legislation on foreign exchange management. Enterprises being credit institutions, apart from the conditions prescribed at Point 13 b and Point 14, Section I, Chapter II of this Circular, must comply with the current regulations of the State Bank on the borrowing limits, short-term foreign loan guarantee.
Determining “fair market value” in a distressed market: Enterprises being credit institutions may sign medium- long-term foreign loan contracts only when satisfying the following conditions: The SBV’s consideration and approval of foreign loans or international bond issuance for State commercial banks are based on:. In cases where enterprises withdraw capital, repay loan via a licensed bank but wish to shift to another licensed bank, they must settle all capital withdrawal and loan repayment transactions at the former bank; if they are medium- or long-term loans, the enterprises must register with the State Bank the change of capital withdrawal, loan repayment service-providing banks.
New Legislation Decision No. Periodically or when necessary, nbnn State Bank and relevant agencies shall inspect the situation of foreign loans and loan repayment by enterprises. Registration of cross-border loans to Vietnam borrowers: The enterprises shall have to supply all documents and necessary dossiers for the timely and effective inspection. The licensed banks must comply with the following mhnn when effecting capital withdrawals and foreign loan repayments for enterprises: 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.
The regulations on acknowledging the registration and registration of changes, including the authority of acknowledging the registration and registration of changes in overseas loans; the basic condition for acknowledging; main substances of documents on acknowledging the registration of overseas loans; the processing of dossiers of registering or registering changes in overseas loans in case that the borrowers violate administrative procedures in foreign exchange management, borrowing and payment of overseas loans; the effect of documents of acknowledging the registration or registration of changes in overseas nhmn, revoking or terminating the effectiveness of documents of acknowledging the registration or registration of changes in overseas loans.
If there is an agreement to amend the foreign loan agreement which is not nhnh to current law and which retains or reduces the hhnn 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.
Share Facebook Twitter Linked In. Dossiers of foreign loan, and loan repayment registration for enterprises being credit organizations shall include the documents prescribed at Points 25 a25 d and 25 eSection II, Chapter III of this Circular. In case of refusal, the State Bank shall state the reasons therefor. 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.
Foreign exchange control applicable to state commercial banks borrowing foreign loans
In cases where 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 withdrawn capital amounts under foreign loan contracts.
Enterprises must produce to the licensed banks where they make the loan repayment the following documents:. Translated by Le Hang. Enterprises signing foreign loan contracts bear self-responsibility for the legal capacities, financial capabilities, loan contract-performing capabilities of the foreign lending parties. Residential land use rights for foreigners in Vietnam. For any amendment made after this date, the relevant State commercial bank must be compliant with the provisions of Circular Within 30 working days as from the date of signing foreign loan contracts and before withdrawing capital, the enterprises must register foreign loans and loan repayment with the State Bank.
Certification of foreign loan repayment registration means that the State Bank issues documents certifying that enterprises have already made foreign loan and loan repayment registration with the State Bank.
Foreign exchange control applicable to state commercial banks borrowing foreign loans – Lexology
The regulations on the reporting regime of borrowers, credit institutions, foreign bank branches and SBV branches of provinces nhn the cities directly under the central government.
Effectiveness Circular 18 will take effect as from 15 October Foreign exchange control applicable to state commercial banks borrowing foreign loans Mayer Brown LLP. Requirements on, and procedures for, foreign loan registration: State-run credit institutions, joint-stock credit institutions, cooperative credit institutions. Please contact customerservices lexology. My saved default Read later Folders shared with you. If the amendment is to increase the registered foreign loan value, then the 0 commercial bank needs to seek a new approval from the SBV on the proposed adjusted foreign loan value followed by registration of the amendment with the SBV.
Circular No.09/2004/TT-NHNN Guiding the foreign borrowing and repayment by enterprises
20004 Foreign loan and loan repayment registration means that enterprises, after signing medium- or long-term foreign loan contracts or after completing procedures for issuance of bonds overseas must carry out the procedures for registration with the State Bank according to the provisions of this Circular. However, as from 15 October i. Login Register Follow on Twitter Search. After obtaining the SBV’s consent, the State commercial bank will sign the foreign loan agreement and other relevant documents.
Where a short-term loan is extended and the total time of the extension duration and the short-term loan term exceeds one year, enterprises must register it with the State Bank within 30 working days as from the date of signing the extension contract and comply with nnn provisions of this Circular nnhnn medium- long-term loans.