Guidelines for foreign exchange administration in respect of foreign borrowing and foreign debt repayment of enterprisesThe Governor of the State Bank of Vietnam issued the Circular on guidelines for foreign exchange administration in respect of foreign borrowing and foreign debt repayment of enterprises.
The Circular provides for the followings:
- Procedures for registration and registration for changes of enterprises’ foreign loans which are not guaranteed by the Government;
- Opening and use of accounts for foreign loan and debt repayment (hereinafter referred to as foreign loan accounts) by borrowers; opening and use of checking accounts by creditors at authorized credit institutions located within the territory of Vietnam to arrange foreign loans;
- Fund withdrawal, debt repayment and other fund transfer transactions in relation to arrangement of foreign loans;
- Foreign exchange administration in respect of transactions relating to collateral realization within the territory of Vietnam, guarantee transfer for foreign loans, reimbursement of indebtedness amounts between the borrower and the grantor of security interest (hereinafter referred to as the grantor) in relation to the foreign loan not guaranteed by the Government;
- Provision, use and administration of information posted on the website for administration of foreign borrowing and repayment of foreign loans which are not guaranteed by the Government (hereinafter referred to as website);
- Mechanism for making statistical reports on enterprises’ foreign borrowing and repayment of foreign loans which are not guaranteed by the Government.
Registration, registration for changes in respect of foreign loans provided in the form of international bond issuance of enterprises which are not guaranteed by the Government under the particular provisions set forth by the State Bank of Vietnam (hereinafter referred to as State Bank) on guidelines for foreign exchange administration as for bond issuance to international market of enterprises which are not guaranteed by the Government.
Registration, registration for changes in respect of foreign loans which are guaranteed by the Government under the particular provisions set forth by the State Bank on guidelines for procedures for registration, registration for changes in foreign loans and bond issuance to international market of enterprises which are not guaranteed by the Government
Opening and use of foreign currency accounts for arranging foreign loans under the particular provisions set forth by the State Bank in the matter of opening and use of foreign currency accounts overseas by residents being organizations.
The Circular applies to Resident enterprises, cooperatives, cooperative federations, credit institutions and foreign bank branches established and licensed within the territory of Vietnam who are known as the party applying for foreign loans (hereinafter referred to as borrower); Credit institutions, foreign bank branches in Vietnam providing account services relating to foreign borrowing for the borrower; providing bank transfer relating to foreign borrowing and repayment of foreign debts that are not guaranteed by the Government; Organizations, individuals who are known as the party offering guarantee and security for foreign loans of the borrower; Credit institutions, foreign bank branches who are entrusted with lending tasks by the non-resident trusting party; Organizations, individuals concerning the borrower's foreign borrowing operations; Individuals or affiliations of the State Bank assuming responsibilities for use and management of information posted on the website.
Foreign loan granted by deferral of payment for imported goods shall include imports on which the first date of withdrawal precedes the last date of payment; in which:
- The date of withdrawal of foreign loan granted by deferral of payment for imported goods willbe:The ninetieth day from the date that transport documents are issued if the bank providing account services requires transport documents included in the payment documents; The forty-fifth day from the date that the examination of information in the cleared customs declaration if the bank providing account services does not require transport documents included in the payment documents;
- The last date of payment will be: The final date of the payment time limit as shown in the contract; The last date of payment in reality if the contract is not followed or does not specify any payment time limit;
The time limit of a foreign loan granted by deferral of payment for imported goods shall commence on the first date of withdrawal and ends on the last date of payment.
Conventional loans made in the form of deferred payment for import of goods shall not be covered by the provisions on registration or registration for changes of foreign loans set forth in Chapter III hereof.
The bank transfer of repayment of the debt (principal and interest) and charges relating to the foreign loan granted by deferral of payment for imported goods is not necessarily made via the foreign loan account.
The Circular shall enter into force from November 15, 2022, exclusive of provisions set forth in clause 2 of this Article.
As for arrangement of foreign loans in the form of deferred payment for import of goods: Mid-term or long-term foreign loans arranged in the form of deferred payment for import of goods of which registration or registration for changes has been confirmed by the State Bank before the date of entry into force of this Circular shall be continuously effected (including withdrawal of loan proceeds or debt repayment) according to statements on confirmation of registration or registration for changes of foreign loans. As for any change that may arise as stated in the statement of confirmation of registration, registration for changes of foreign loan, the borrower shall register the change based on the agreement with the creditor, and shall not be required to apply for registration for changes with the State Bank.
As for foreign loans denominated in Vietnam dong: Foreign loans denominated in Vietnam dong of which registration or registration for changes is confirmed before April 15, 2016 shall be continuously effected according to the statement on confirmation of registration or registration for changes of such foreign loans issued by a State Bank branch; Where there is any additional change to foreign loans denominated in Vietnam dong which has been certified by the State Bank (Department of Foreign Exchange Management) in terms of registration or registration for changes, the identification of the competent authority to process applications for registration of changes shall comply with Article 20 of this Circular.
Guidelines for foreign exchange administration in respect of foreign borrowing and foreign debt repayment of enterprises
30/09/2022
The Governor of the State Bank of Vietnam issued the Circular on guidelines for foreign exchange administration in respect of foreign borrowing and foreign debt repayment of enterprises.
The Circular provides for the followings:
- Procedures for registration and registration for changes of enterprises’ foreign loans which are not guaranteed by the Government;
- Opening and use of accounts for foreign loan and debt repayment (hereinafter referred to as foreign loan accounts) by borrowers; opening and use of checking accounts by creditors at authorized credit institutions located within the territory of Vietnam to arrange foreign loans;
- Fund withdrawal, debt repayment and other fund transfer transactions in relation to arrangement of foreign loans;
- Foreign exchange administration in respect of transactions relating to collateral realization within the territory of Vietnam, guarantee transfer for foreign loans, reimbursement of indebtedness amounts between the borrower and the grantor of security interest (hereinafter referred to as the grantor) in relation to the foreign loan not guaranteed by the Government;
- Provision, use and administration of information posted on the website for administration of foreign borrowing and repayment of foreign loans which are not guaranteed by the Government (hereinafter referred to as website);
- Mechanism for making statistical reports on enterprises’ foreign borrowing and repayment of foreign loans which are not guaranteed by the Government.
Registration, registration for changes in respect of foreign loans provided in the form of international bond issuance of enterprises which are not guaranteed by the Government under the particular provisions set forth by the State Bank of Vietnam (hereinafter referred to as State Bank) on guidelines for foreign exchange administration as for bond issuance to international market of enterprises which are not guaranteed by the Government.
Registration, registration for changes in respect of foreign loans which are guaranteed by the Government under the particular provisions set forth by the State Bank on guidelines for procedures for registration, registration for changes in foreign loans and bond issuance to international market of enterprises which are not guaranteed by the Government
Opening and use of foreign currency accounts for arranging foreign loans under the particular provisions set forth by the State Bank in the matter of opening and use of foreign currency accounts overseas by residents being organizations.
The Circular applies to Resident enterprises, cooperatives, cooperative federations, credit institutions and foreign bank branches established and licensed within the territory of Vietnam who are known as the party applying for foreign loans (hereinafter referred to as borrower); Credit institutions, foreign bank branches in Vietnam providing account services relating to foreign borrowing for the borrower; providing bank transfer relating to foreign borrowing and repayment of foreign debts that are not guaranteed by the Government; Organizations, individuals who are known as the party offering guarantee and security for foreign loans of the borrower; Credit institutions, foreign bank branches who are entrusted with lending tasks by the non-resident trusting party; Organizations, individuals concerning the borrower's foreign borrowing operations; Individuals or affiliations of the State Bank assuming responsibilities for use and management of information posted on the website.
Foreign loan granted by deferral of payment for imported goods shall include imports on which the first date of withdrawal precedes the last date of payment; in which:
- The date of withdrawal of foreign loan granted by deferral of payment for imported goods willbe:The ninetieth day from the date that transport documents are issued if the bank providing account services requires transport documents included in the payment documents; The forty-fifth day from the date that the examination of information in the cleared customs declaration if the bank providing account services does not require transport documents included in the payment documents;
- The last date of payment will be: The final date of the payment time limit as shown in the contract; The last date of payment in reality if the contract is not followed or does not specify any payment time limit;
The time limit of a foreign loan granted by deferral of payment for imported goods shall commence on the first date of withdrawal and ends on the last date of payment.
Conventional loans made in the form of deferred payment for import of goods shall not be covered by the provisions on registration or registration for changes of foreign loans set forth in Chapter III hereof.
The bank transfer of repayment of the debt (principal and interest) and charges relating to the foreign loan granted by deferral of payment for imported goods is not necessarily made via the foreign loan account.
The Circular shall enter into force from November 15, 2022, exclusive of provisions set forth in clause 2 of this Article.
As for arrangement of foreign loans in the form of deferred payment for import of goods: Mid-term or long-term foreign loans arranged in the form of deferred payment for import of goods of which registration or registration for changes has been confirmed by the State Bank before the date of entry into force of this Circular shall be continuously effected (including withdrawal of loan proceeds or debt repayment) according to statements on confirmation of registration or registration for changes of foreign loans. As for any change that may arise as stated in the statement of confirmation of registration, registration for changes of foreign loan, the borrower shall register the change based on the agreement with the creditor, and shall not be required to apply for registration for changes with the State Bank.
As for foreign loans denominated in Vietnam dong: Foreign loans denominated in Vietnam dong of which registration or registration for changes is confirmed before April 15, 2016 shall be continuously effected according to the statement on confirmation of registration or registration for changes of such foreign loans issued by a State Bank branch; Where there is any additional change to foreign loans denominated in Vietnam dong which has been certified by the State Bank (Department of Foreign Exchange Management) in terms of registration or registration for changes, the identification of the competent authority to process applications for registration of changes shall comply with Article 20 of this Circular.