Documentation and Procedures for Foreign Loans

Fri, 21 Jun 2024 13:57:00  |  Print  |  Email   Share:

A company in Vietnam (100% foreign-invested capital) is borrowing money for its foreign parent company. Circular No. 37/2013/TT-NHNN of the State Bank requires documentation including the Prime Minister's approval for foreign loans by economic organizations.

Mr. Nguyen Anh (Ho Chi Minh City) asked about the specific forms, documents, and procedures. Where should the application be submitted to receive the Prime Minister's approval?

On this matter, the State Bank of Vietnam responded as follows:

The lending of foreign funds by economic organizations to non-residents is currently governed by the following regulations:

According to Article 2, Clause 19 of Foreign Exchange Ordinance No. 07/VBHN-VPQH dated July 11, 2013:

"Economic organizations may lend funds abroad, except for deferred payments for exports of goods and services, and guarantees for non-residents as permitted by the Prime Minister."

The State Bank of Vietnam guides the opening and use of accounts, fund transfers abroad, debt recovery, loan registration, foreign debt recovery, and related capital transfer transactions for lending and foreign debt recovery activities of economic organizations.

According to Circular No. 37/2013/TT-NHNN dated December 31, 2013 of the Governor of the State Bank, which provides guidance on foreign exchange management for lending abroad and guaranteeing debts for non-residents:

Article 7 specifies the components of the application dossier for foreign loans.

In Clause 1 of Article 8: "Within thirty (30) days from the date of signing the loan agreement and before disbursement, the Lender shall directly send or send via postal services to the State Bank (Foreign Exchange Management Department) one (01) dossier as regulated in Article 7 of this Circular."

In cases of foreign loans to non-residents by economic organizations, after obtaining permission from the Prime Minister, the enterprise submits the application dossier for foreign loans to the State Bank as stipulated in Circular No. 37/2013/TT-NHNN mentioned above.



By: (Government Newspaper)/Translator: LeAnh-Bizic


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