Dossiers for registration of foreign loans in Vietnam

Dossiers for registration of foreign loans in Vietnam

 State Bank of Vietnam issued Circular 03/2016/TT-NHNN dated 26 February 2016 and the Circular 05/2016/TT-NHNN dated 15 April 2016 stipulated procedures and dossiers for registration of foreign loans applied to enterprise in Vietnam, in which it regulates the registration dossier of foreign loans applied to enterprises in Vietnam, effective on 15 April 2016.

The dossiers for registration of foreign loan applied to enterprises in Vietnam  include:

1. An application for registration of foreign loans in the standard form.

2. Copies (certified by the Borrower) of legal documents of the borrower and the loan user for cases where the borrower does not use the borrowed funds include: Business registration certificate, certificate of business registration, investment certificate or other equivalent document.

3. Copies (certified by the borrower) or original documents illustrating the loan purposes include:
a) For the medium and long term foreign loans:
(i) The plan of production, business, investment projects using foreign loans to be approved by the competent authorities under the provisions of the Investment Law, the Enterprise Law and the charter business etc;
(ii) The plan to restructure the foreign debt of the borrower to be approved by the competent authorities under the provisions of the Enterprise Law and the charter of the enterprise, the Law on Cooperatives and Cooperative Charter and other related documents;
b) For short-term foreign loans must be registered:
Report on the use of short-term foreign loans are initially meet the conditions prescribed short-term foreign loans (together with the documents to prove) and repayment plans for proposed foreign loan bank State registration confirmation.

4. Copies and Vietnamese translations (certified by the borrower) foreign loan agreements and loan agreements to renew short-term success and long-term (if any); withdrawal or text accompanying framework agreement.

5. Copies and Vietnamese translations (certified by the borrower) written guarantee commitments (letters of guarantee, contract of guarantee or form other financial guarantees) in the case of the guaranteed loan .

6. Copies (certified by the borrower) of documents approved by the competent authorities of foreign loans in accordance with the law for state-owned enterprises.

7. Report on compliance with the regulations of the State Bank on granting credit limits and prudential ratios in operations of credit institutions and branches of foreign banks at the end of the month preceding the date of signing foreign loan agreements and documents to prove the absence of compliance with the provisions of the law on granting credit limits and the safety rate has been the Prime Minister or the Governor of the Bank approved by the State in accordance with the law (if any) for the borrower”s credit institutions and branches of foreign banks.

8. Confirm bank account service providers in the following cases:
a) In case of foreign loans to restructure foreign debt: document of banking service providers about  account of the borrower on the withdrawal and repayment of foreign loans will be restructured from foreign loans;
b) In case the capital of foreign investors into Vietnam was used to meet the funding must be prepared to invest overseas loan converted into medium and long-term business with foreign direct investment outside under the current provisions of law relating to foreign direct investment in Vietnam: the text of the bank account service provision by the lender confirms the transaction revenue and expenditure relating to the the loan formed;
c) Where the short term loan is subject to registration: The documents of the banks providing services about account of the borrower on the withdrawal and repayment of loan initial short-term foreign loan.

9. The documents, records evidencing legal profit divided by Vietnam dong from direct investment activities of the Lender as foreign investors contribute capital in the borrower and the bank confirmed Supply account service on the division and transfer of profits by the lender to prove the loan disbursement for the case of foreign loans in Vietnam dong according to the current regulations on foreign borrowing conditions by  Vietnam dong.

10. A written explanation of the need for foreign loans in Vietnam dong for the case of foreign loans in Vietnam dong shall be the Governor of the State Bank allowed under current regulations of the State Bank of Conditions foreign loans in Vietnam dong.

Any more information about dossiers for foreign loan registration in Vietnam,  please contact us, Clich here.

Lawyer VN - Vietnamese law firm