Vietnam: Composition of the application file for foreign loan of credit institution

According to Circular No. 45/2011/TT-NHNN of the State Bank of Vietnam, application file for foreign loan of credit institution is prescribed as follows:

The credit institution shall send, directly or via post service, 01 (one) application file for loan to the State Bank (Department of Foreign Exchange Control). The application file shall include:

1. An application for the foreign loan (in accordance with the Appendix No. 01 enclosed to this Circular).

2. A Report on credit growth of credit institution, evidence for the satisfaction of prudential ratios in activities of the credit institution as at the end of the latest month prior to the signing date of the loan agreement and assessment on the impact of the foreign loan on the compliance with provisions on credit growth and prudential ratios in activities of the credit institution.

3. The appraisement report on the foreign loan, including following major contents: assessment on the feasibility, effect of the investment project, the business plan of the foreign borrower; possible risks, ability to timely and fully collect the principal, interest debts; the observance the value of loan and the scope of loan use; the guarantee of loan and other relevant contents.

4. Report and commitment of credit institution on the satisfaction of the conditions applicable to foreign loans as prescribed in Clauses 3, 4 Article 7 of this Circular, including following major contents: regulations on the credit process applicable to foreign loan operations of the credit institution; the real situation of the qualification of the credit officers, management capacity, risk prevention; the classification of debt, making provision for foreign loans; commitment to comply with current provisions of the State Bank on debt classification, making and use of provision for dealing with credit risks for foreign loans.

5. Report on the source of foreign currency fund for loan, including contents related to the scale, currency structure and maturity structure between mobilized fund and lending in foreign currency at the time of signing the loan agreement.

6. Certified copies and Vietnamese translation of the Establishment decision or Investment registration certificate of the foreign borrower in accordance with provisions of the native country.

7. A certified copy of the overseas investment certificate of the Vietnamese enterprise that contributes capital in the foreign borrower.

8. A copy and Vietnamese translation (with confirmation of an authorized representative of the credit institution) of the signed loan agreement.

9. A copy and Vietnamese translation (with confirmation of an authorized representative of the credit institution) of the documents, guarantee agreement, security for the foreign loan.

Processing time for the application is specified as follows:

- The State Bank shall handle the application file for loan, change of loan of a credit institution within a period of 30 (thirty) days since the full receipt of the valid application file. In case of refusal, the State Bank shall issue a document to clarify the reasons thereof.

- In case where more information and conditions are required for confirmation or refusal to confirm the registration, registration for change, the State Bank shall send a written notice to the credit institution within 10 working days since the receipt of the application file from credit institutions.

View more details at Circular No. 45/2011/TT-NHNN of the State Bank of Vietnam, effective from June 30, 2012.

Thuy Tram

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