What are responsibilities of an obligee during the term of a government-guaranteed loan in Vietnam?

What are responsibilities of an obligee during the term of a government-guaranteed loan in Vietnam?

Pursuant to Article 65 of the Decree 91/2018/NĐ-CP stipulating responsibilities of an obligee during the term of a government-guaranteed loan in Vietnam as follows:

1. The lender (also the obligee) shall closely cooperate with the Ministry of Finance during the negotiation on a letter of guarantee.

2. The obligee shall assume responsibility to cooperate with the Ministry of Finance during the term of a government-guaranteed loan and the validity of the letter of guarantee. To be specific:

a) Send the copy of every notice of fund withdrawal, or changes in interest rate (if any), or debt collection letter to the Ministry of Finance at the same time when it is delivered to the obligor;

b) Submit a report to the Ministry of Finance on fund withdrawal, debt repayment and project execution of the obligor immediately when discovering any abnormal events;

c) Send other notices to the Ministry of Finance as specified in the government-guaranteed loan agreement.

3. The obligee shall provide for the Ministry of Finance with necessary information about the obligor, the project and the government-guaranteed loan, and reports on inspections conducted within the permitted scope to ensure the proper use of borrowed amounts and the obligor’s fulfillment of obligations as defined in the loan agreement.

What are responsibilities of a serving bank regarding a government-guaranteed loan in Vietnam? 

Pursuant to Article 66 of the Decree 91/2018/NĐ-CP stipulating responsibilities of a serving bank regarding a government-guaranteed loan in Vietnam as follows:

1. Fulfill its duties and cooperate with the Ministry of Finance and relevant authorities in managing the project, loan or bond issue guaranteed by the government in accordance with regulations herein.

2. Provide the Ministry of Finance with the printed report given by the National Credit Information Center of Vietnam affiliated to the State Bank of Vietnam on the obligor’s credit rating of the reporting year within the first week of the following fiscal year.

3. Implement necessary sanctions as requested by the Ministry of Finance in conformity with prevailing laws and regulations herein in order to serve the debt collection by the Accumulation Fund for Debt Repayment with respect to the forced loan given to the obligor for paying guaranteed loan or corporate bonds, and fees arising from payment of debts made on behalf of the obligor.

4. Manage the loan, collect and pay debts, and adopt security interests for a government-guaranteed loan in an impartial manner as other loans given to the obligor by the Serving Bank.

Best regards!