What are the regulations on the foreign loans granted by deferral of payment for imported goods in Vietnam?
- What are the regulations on the foreign loans granted by deferral of payment for imported goods in Vietnam?
- What are the rules for using foreign loan capital in Vietnam?
- What are the basic contents of a plan for use of foreign loan capital prepared by the borrower that is a credit institution or FBB in Vietnam?
What are the regulations on the foreign loans granted by deferral of payment for imported goods in Vietnam?
Pursuant to Article 5 of Circular 08/2023/TT-NHNN stipulating as follows:
Foreign loans granted by deferral of payment for imported goods
1. Borrowers of foreign loans which are granted in the form of import of goods with deferred payment are not required to meet the eligibility requirements for foreign loans laid down in this Circular.
2. Borrowers of foreign loans which are granted in the form of import of goods with deferred payment shall comply with regulations and guidelines on management of foreign exchange in foreign borrowing and foreign debt repayment by enterprises, regulations of law on foreign trade management and other relevant law provisions.
Accordingly, borrowers of foreign loans which are granted in the form of import of goods with deferred payment are not required to meet the eligibility requirements for foreign loans laid down in Circular 08/2023/TT-NHNN.
Borrowers of foreign loans which are granted in the form of import of goods with deferred payment shall comply with regulations and guidelines on management of foreign exchange in foreign borrowing and foreign debt repayment by enterprises, regulations of law on foreign trade management and other relevant law provisions
What are the regulations on the foreign loans granted by deferral of payment for imported goods in Vietnam? (Image from the internet)
What are the rules for using foreign loan capital in Vietnam?
Pursuant to the provisions of Article 6 of Circular 08/2023/TT-NHNN stipulating as follows:
Rules for using foreign loan capital
1. Borrowers shall assume overall responsibility to use foreign loan capital for lawful purposes as defined in this Circular.
2. In case a foreign loan amount has been withdrawn but has not yet used for the lawful loan purposes as defined in this Circular, the borrower may deposit this loan amount at credit institutions or FBBs operating in Vietnam. Term of each deposit does not exceed 01 month.
Thus, the rules for using foreign loan capital as follows:
- Borrowers shall assume overall responsibility to use foreign loan capital for lawful purposes as defined in the Circular 08/2023/TT-NHNN.
- In case a foreign loan amount has been withdrawn but has not yet used for the lawful loan purposes as defined in the Circular 08/2023/TT-NHNN, the borrower may deposit this loan amount at credit institutions or FBBs operating in Vietnam. Term of each deposit does not exceed 01 month.
The maximum term of each deposit is not more than 01 month.
What are the basic contents of a plan for use of foreign loan capital prepared by the borrower that is a credit institution or FBB in Vietnam?
Pursuant to the provisions of Clause 2, Article 7 of Circular 08/2023/TT-NHNN, as follows:
Plan for use of foreign loan capital
1. The plan for use of foreign loan capital is the business plan to be financed by the foreign loan, in which the borrower justifies their lawful and reasonable purposes and the need of the foreign loan. The borrower’s plan for use of foreign loan capital must be approved by a competent authority in accordance with provisions of the Investment Law, the Law on Enterprises, the Law on Credit Institutions, the Law on Cooperatives, the borrower’s charter and other relevant law provisions (hereinafter referred to as “authorized approving authority").
2. The plan for use of foreign loan capital prepared by the borrower that is a credit institution or FBB shall, inter alia, have the following contents:
a) Name of the borrower, type of the credit institution, equity capital, address, license for establishment and operation of the credit institution or license for establishment of the FBB, outstanding debts incurred from short-term, medium/long-term loans as at the planning date;
b) Business objectives, total demand for capital mobilization, and demand for foreign loan capital of the borrower;
c) Information on the foreign loan to be obtained;
d) Purposes of the foreign loan, including: information on target customers to who the borrower considers giving loans using the foreign loan capital, planned lending interest rate and loan term;
dd) Foreign borrowing scale: loan amount, credit growth target, credit growth rate as at the planning date, comparison of the foreign borrowing scale with the remaining credit growth scale as at the end of the year or with the credit growth scale of the previous year in case information on credit growth target of the current year is not available;
e) Measures for management of risks arising from the foreign loan;
g) Authority to approve the plan for use of foreign loan capital: approving authority and grounds for determining approving authority;
h) Other contents (if any).
...
Thus, according to the above provisions, the plan for use of foreign loan capital prepared by the borrower that is a credit institution or FBB shall, inter alia, have the following contents:
- Name of the borrower, type of the credit institution, equity capital, address, license for establishment and operation of the credit institution or license for establishment of the FBB, outstanding debts incurred from short-term, medium/long-term loans as at the planning date;
- Business objectives, total demand for capital mobilization, and demand for foreign loan capital of the borrower;
- Information on the foreign loan to be obtained;
- Purposes of the foreign loan, including: information on target customers to who the borrower considers giving loans using the foreign loan capital, planned lending interest rate and loan term;
- Foreign borrowing scale: loan amount, credit growth target, credit growth rate as at the planning date, comparison of the foreign borrowing scale with the remaining credit growth scale as at the end of the year or with the credit growth scale of the previous year in case information on credit growth target of the current year is not available;
- Measures for management of risks arising from the foreign loan;
- Authority to approve the plan for use of foreign loan capital: approving authority and grounds for determining approving authority;
- Other contents (if any).
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Circular 08/2023/TT-NHNN takes effect from August 15, 2023, except for regulations on foreign short-term borrowing limits specified in Article 15 of Circular 08/2023/TT-NHNN, which takes effect from January 1, 2024.
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