How is the Re-lending of Foreign Loans by the Government of Vietnam Accounted for?

Based on Article 34 of Circular 99/2021/TT-BTC (effective from January 01, 2022) which provides for the accounting of re-borrowing foreign loans of the Government of Vietnam as follows:

- For foreign loans of the Government of Vietnam re-borrowed by local authorities, the Department of Finance shall monitor and evaluate the management of re-borrowed loan capital under the project pursuant to Decree 97/2018/ND-CP and the re-borrowing contract.

- Periodically before the 20th of each month, based on the loan disbursement documents from the sponsor, the Department of Debt Management and External Finance shall send a Notification of the disbursements to the Department of Finance to reconcile the debt situation consolidated from project owners to record the debt through the provincial State Treasury.

- Within 05 working days from the date of receiving the notification from the Ministry of Finance (Department of Debt Management and External Finance), the Department of Finance shall send an official letter requesting debt recognition along with a copy of the sponsor's disbursement notification to the provincial State Treasury for the State Treasury to account for the local government's debt in tandem with the Government of Vietnam's debt acquisition.

- The General Director of the State Treasury shall provide detailed guidelines on the accounting method as per the authority assigned in Circular No. 77/2017/TT-BTC and Circular No. 19/2020/TT-BTC. Prior to the deadline for the Department of Finance to submit local debt reports to the Ministry of Finance (05 working days), the provincial State Treasury shall prepare a report and send it to the Department of Finance regarding the local government’s re-borrowed debt from the Government of Vietnam. The reporting form of the provincial State Treasury for the re-borrowing data of local authorities must ensure all the information required for the Department of Finance to report to the Ministry of Finance as per current regulations.

Respectfully!