What are procedures for arrangement of foreign loans after the borrower is fully divided, partly divided, consolidated or acquired in Vietnam?
What are procedures for arrangement of foreign loans after the borrower is fully divided, partly divided, consolidated or acquired in Vietnam? What are principles for making and sending applications for foreign loans in Vietnam? What are regulations on websites for foreign exchange administration in respect of foreign loans and debt repayments in Vietnam?
What are procedures for arrangement of foreign loans after the borrower is fully divided, partly divided, consolidated or acquired in Vietnam?
Pursuant to Article 6 of the Circular 12/2022/TT-NHNN (takes effect from 15/11/2022) stipulating procedures for arrangement of foreign loans after the borrower is fully divided, partly divided, consolidated or acquired in Vietnam as follows:
1. When the borrower is fully divided, partly divided, consolidated or acquired, the successor shall take on the rights and obligations in relation to the foreign loan and continue to discharge the responsibilities of the borrower as prescribed in this Circular.
2. In case only 01 entity inherits the rights and obligations related to the foreign loan of the borrower that is fully or partly divided: the creditor and the transferee shall reach an agreement in writing to determine which organization will inherit the rights and obligations of the borrower that is fully or partly divided relating to the foreign loan, ensuring that it does not go against the relevant laws.
3. After the full or partial division, if multiple entities are held jointly liable for the obligation to repay the foreign loan:
a) The mentioned jointly-liable entities shall reach an agreement in writing to authorize an entity to carry out administrative procedures and send reports related to foreign loans as prescribed in this Circular;
b) The mentioned jointly-liable entities shall open a joint checking account as an account for foreign borrowing and repayment. In case they do not jointly open a joint checking account to act as a foreign loan account, these entities must ensure the opening of such foreign loan accounts at the same account service provider to continue to repay the foreign loan;
c) Where one of the mentioned jointly-liable entities is a foreign-invested enterprise, the use of the account to repay this loan shall be carried out in accordance with this Article. The bank where the mentioned jointly-liable entities open the foreign loan account is not required to be the bank where the foreign-invested capital account is opened.
4. The account service provider of the borrower that is fully or partly divided, consolidated or acquired shall provide information on the withdrawal of loan proceeds and repayment of foreign loan at the request of the successor of the borrower to repay the foreign loan and/or the account service provider of such successor so that the parties have a basis to continue to arrange the loan in compliance with the law on foreign borrowing and debt repayment.
What are principles for making and sending applications for foreign loans in Vietnam?
Pursuant to Article 7 of the Circular 12/2022/TT-NHNN (takes effect from 15/11/2022) stipulating principles for making and sending applications for foreign loans in Vietnam as follows:
1. The borrower sends 01 set of application to carry out administrative procedures as prescribed in this Circular in either of the following methods:
a) Submit it to the Single-window department of the State Bank in person;
b) Submit it by post.
2. Documents in the application are originals or certified copies with the borrower's certification of copying from the originals.
3. Vietnamese translations of foreign-language documents are translations made by the borrower itself or through a translation service provider. The borrower shall confirm the accuracy of the Vietnamese translation with the foreign language content.
4. In case the borrower simultaneously carries out the procedures for registration, registration for change of multiple foreign loans at the same time, or during the time when the State Bank (Department of Foreign Exchange Management) or the State Bank State branches of provinces and centrally affiliated cities (hereinafter referred to as the State Bank branches) are processing the borrower’s applications for registration and registration for changes of other foreign loans, the borrower is not required to resubmit the documents with the same content to the processing authorities.
What are regulations on websites for foreign exchange administration in respect of foreign loans and debt repayments in Vietnam?
Pursuant to Article 8 of the Circular 12/2022/TT-NHNN (takes effect from 15/11/2022) stipulating websites for foreign exchange administration in respect of foreign loans and debt repayments in Vietnam as follows:
1. The State Bank shall manage data and information about enterprises’ foreign borrowing and repayment of foreign debts which are not guaranteed by the Government via its website address www.sbv.gov.vn or www.qlnh-sbv.cic.org.vn.
2. Use of websites for declaring information for registration and registration for changes of loans and preparing review reports on arrangement of conventional loans shall be consistent with the provisions laid down in this Circular and user instruction manuals available on these websites.
3. Borrowers shall sign up for their accounts to access these websites under the provisions of Article 10 hereof.
Best regards!
