Vietnam: Each foreign loan shall be performed by credit institution via 01 account of foreign loan

According to Article 14 of Circular No. 45/2011/TT-NHNN of the State Bank of Vietnam, account of foreign loan of credit institution is prescribed as follows:

1. Each foreign loan shall be performed by credit institution via 01 (one) account of foreign loan and debt collection opened at the very credit institution or at another credit institution. The credit institution shall be required to perform all transactions relating to the disbursement for the foreign loan, debt collection (principal, interest debt and types of fees…) via this account.

2. For the case of opening the account of foreign loan, debt collection at the very credit institution for performing the foreign loan and debt collection, the credit institution shall be responsible for performing separate accounting of transactions relating to the foreign loan on the account of foreign loan and debt collection; be responsible for and ensure the performance of transactions relating to the foreign loan in line with contents of the registration confirmation, change registration confirmation issued by the State Bank.

3. For the case of opening an account of foreign loan and debt collection at another credit institution for performing the foreign loan, the credit institution where the account is opened shall be responsible for checking and comparing the documents submitted by the borrower in order to ensure the right performance of all transactions of that foreign loan, for which the State Bank has confirmed the registration, registration for change and in conformity with current provisions of applicable laws.

4. That the credit institution maintains a foreign currency account at a foreign country for foreign loan and debt collection shall be implemented in accordance with current provisions on the opening and use of overseas foreign currency account of credit institutions.

Moreover, credit institutions must make reports according to the following provisions:

- On a monthly basis (on the 10th of the next month at the latest), on an annual basis (on 31st January of the next year at the latest), the credit institution takes responsibility for the report on the implementation of the foreign loan.

- In unexpected cases, the credit institution shall report upon request by the State Bank.

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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