Is it required to register with the State Bank of Vietnam when borrowing foreign capital?
According to Article 9 of Circular 03/2016/TT-NHNN governing loans required to be registered, the provision states:
Loans subject to registration with the State Bank include:
- Medium and long-term foreign loans.
- Short-term loans that are extended, where the total loan term exceeds 01 (one) year.
- Short-term loans without extension contracts but with outstanding principal at the time of exactly 01 (one) year from the first disbursement date, except in cases where the borrower completes the repayment of the loan within 10 (ten) days from the time exactly 01 (one) year from the first disbursement date.
Furthermore, Clause 1, Article 31 of this Circular also provides regulations concerning the transfer of funds for executing foreign loans, as follows:
For foreign loans required to be registered with the State Bank, the borrower may only disburse and repay (principal, interest) the foreign loan after the loan has been confirmed registered by the State Bank, except in cases of disbursement and partial repayment of principal and interest in the first year of short-term loans converted to medium or long-term.
Based on the above regulation, foreign loans, including long-term foreign loans, must be registered with the State Bank. Therefore, your company is required to register with the State Bank.
Respectfully!
