What are responsibilities of the State Bank of Vietnam regarding government guarantee?

What are responsibilities of the State Bank of Vietnam regarding government guarantee?

Pursuant to Article 59 of the Decree 91/2018/NĐ-CP stipulating responsibilities of the State Bank of Vietnam regarding government guarantee as follows:

1. Grant certificates of registration or registration of change of foreign loans guaranteed by the government to obligors upon the issuance of letters of guarantee by the Ministry of Finance.

2. Update the credit information center’s system with information about the status of loans granted to obligors by credit institutions and branches of foreign banks.

What are responsibilities of ministries, ministerial-level agencies, sector regulatory authorities of Vietnam regarding government guarantee?

Pursuant to Article 60 of the Decree 91/2018/NĐ-CP stipulating responsibilities of ministries, ministerial-level agencies, sector regulatory authorities of Vietnam regarding government guarantee as follows:

1. Give approval for borrowing plans and bond issuance schemes of enterprises of which 100% charter capital is held by the State in the capacity of representative agencies with respect of the following contents:

a) Approve loans or bond issues of enterprises of which 100% charter capital is held by the State for execution of investment projects;

b) Give opinions about the reasonableness of enterprise's calculation parameters (estimated selling price or sources of revenues; operating capacity and frequency of machinery/ equipment, depreciation, etc.) for formulating financial plans and cash flow for debt repayment.

c) Evaluate the efficiency and solvency of the project’s investor and financial plan;

d) Consider the feasibility of an enterprise’s commitments specified in a loan agreement, borrowing plan or bond issuance scheme within the ambit of rights and duties of a representative agency of state capital in an enterprise of which 100% charter capital is held by the State in accordance with applicable law regulations on management and use of state funds in enterprises;

2. Inspect and expedite obligors under their management to fulfill their obligations towards lenders and the Ministry of Finance; take charge of dealing with issues relating to these obligors’ failure to fulfill obligations.

3. Inform the Ministry of Finance in writing of decisions, policies or events that may cause adverse influence on the execution of projects and the performance of payment obligations as mentioned in loan agreements of enterprises under their management, and propose solutions for handling these cases.

4. Give opinions about the contents specified in Point b, Point c and Point d Clause 1 of this Article in the capacity of a representative agency for the enterprise of which less than 100% of charter capital is held by the State when applying for the government guarantee for its loan or bond issuance.

5. Give opinions about borrowing plans or bond issuance schemes of enterprises not funded by the State in the capacity of sector regulatory authorities with respect to issues relating to investment projects, and eligibility for a loan or issuance of bonds for which the government guarantee is applied at the request of the Ministry of Finance in course of processing enterprises’ applications for proposals for government guarantee or issuance of government guarantee.

6. Cooperate with the Ministry of Finance in handling disputes about the performance of letters of guarantee.

What are responsibilities of Provincial-level People's Committees of Vietnam regarding government guarantee? 

Pursuant to Article 61 of the Decree 91/2018/NĐ-CP stipulating responsibilities of Provincial-level People's Committees of Vietnam regarding government guarantee as follows:

1. Give opinions about business activities of the enterprise that applies for the government guarantee in province (if any); about the investor’s compliance with procedures concerning the investment project in province at the request by the Ministry of Finance.

2. Cooperate in disposing the collateral under the management of a Provincial-level People’s Committee.

3. Supervise the compliance with applicable law regulations by enterprises executing programs or projects in province.

Best regards!