The State Bank of Vietnam plans to tighten foreign loans in real estate and securities

The State Bank of Vietnam is collecting comments on the draft Circular stipulating conditions for foreign loans of enterprises not guaranteed by the Government This Circular will change replace Circular 12 with stricter foreign loan conditions, in order to ensure the limit of self-borrowing and self-pay foreign debt of enterprises, thereby ensuring the national debt safety ratio.

Only foreign loans can be used to carry out which production and business activities?

Pursuant to Clause 3, Article 15 of the Draft Circular stipulating conditions for foreign loans of enterprises that are not guaranteed by the Government, the borrower may only use foreign loans to carry out production and business activities. Business suitable for:

- Scope of business registration of the enterprise, scope of establishment license, investment registration certificate, decision on approval of investment policy, certificate of registration of cooperatives and unions of cooperation Commune or License of equivalent value as prescribed by law;

- Other legal scope of activities specified in current legal documents regulating the charter of organization and operation of the Borrower.

Note:

- The foreign medium- and long-term borrowers for the purposes specified at Points b and c, Clause 2 of this Article and the foreign short-term borrowers must specify the purpose of using foreign loans in the Plan on using foreign loans. use foreign loans and take responsibility for ensuring that the purposes of capital use comply with regulations on foreign loan conditions specified in this Circular and other relevant laws. The use of foreign loans by the Borrower must ensure the right purposes according to the plan for using foreign loans.

- The Borrower's plan for using foreign loans must be approved by a competent authority in accordance with the Borrower's Charter and other relevant laws.

SBV plans to tighten foreign loans in real estate and securities

What is the limit for medium and long-term foreign loans?

Pursuant to Article 16 of the Draft Circular stipulating conditions for foreign loans of enterprises that are not guaranteed by the Government, the borrower must meet the limit for medium and long-term foreign loans as follows:

- In case of foreign loans for the implementation of an investment project: the balance of medium- and long-term domestic and foreign loans of the Borrower to serve that project (including the expected foreign medium- and long-term loans); implementation) must not exceed the difference between the total investment capital and the contributed capital recorded in the Decision approving the investment policy, the Investment Registration Certificate.

- In case of foreign loans to increase the size of capital for production and business activities of the Borrower: The borrower must ensure the balance of medium and long-term domestic and foreign loans (including loans) medium and long-term foreign loan) of the Borrower does not exceed 3 times the equity according to the most recent audited financial statement at the time of signing the foreign loan agreement or the charter capital in the case of capital owner is less than the charter capital of the Borrower.

- In case of foreign loans to restructure existing foreign loans of the Borrower: the maximum loan turnover shall not exceed the outstanding balance of principal and interest of the restructured foreign loan.

Thus, in order to control and maintain safe debt thresholds approved by the National Assembly, the Prime Minister assigned the State Bank to more closely regulate foreign borrowing by the private sector.

Khanh Linh

0 lượt xem
  • Address: 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd.
Editorial Director: Mr. Bui Tuong Vu - Tel. 028 3935 2079
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;