What are responsibilities of a parent company regarding government guarantee in Vietnam?
I have a question about government guarantee in Vietnam. What are responsibilities of a parent company regarding government guarantee in Vietnam? Thank you!
Pursuant to Article 63 of the Decree 91/2018/NĐ-CP stipulating responsibilities of a parent company regarding government guarantee in Vietnam as follows:
1. If the obligor is an associate company in the form of parent company – subsidiary, the parent company shall:
a) Discharge obligations of a parent company according to the written commitment sent to the Ministry of Finance before processing the application for government guarantee;
b) Give financial assistance to the obligor so as to ensure the project’s progress and payment of due debts to the lender when the obligor defaults.
2. The parent company shall supervise and instruct the obligor to fulfill all obligations towards the lender and the Ministry of Finance according to the signed documents.
3. A written commitment by a parent company that is an enterprise of which 100% charter capital is held by the State to its subsidiary, also the obligor, under regulations in Clause 11 Article 14 and Clause 10 Article 19 herein shall not be aggregated in its guarantee for this subsidiary applying for a loan at a credit institution as prescribed in Clause 4 Article 23 of the Law on management and use of state funds in enterprises.
Above are responsibilities of a parent company regarding government guarantee in Vietnam.\
Best regards!
