What are regulations on management of foreign exchange in debt purchase and sale transactions in Vietnam?

What are regulations on management of foreign exchange in debt purchase and sale transactions in Vietnam? - image from internet

Pursuant to Article 9 of the Circular 09/2015/TT-NHNN on regulations on debt purchase and sale by credit institutions and foreign bank branches, which is issued by the Governor of the State Bank of Vietnam, the regulations on management of foreign exchange in debt purchase and sale transactions in Vietnam are as follows:

1. Debt purchasers, debt sellers, debtors and other related parties shall comply with regulations on restriction on foreign exchange use in the Vietnamese territory when purchasing and selling debts and recovering purchased debts.

2. When purchasing or selling debts from/to credit institutions and foreign bank branches:

a/ Debt purchasers shall use Vietnam-dong accounts for payment for purchased debts and other expenses to credit institutions or foreign bank branches under debt purchase and sale contracts, for cases of using Vietnam dong in debt purchase transactions;

b/ Debt purchasers being non-residents shall use their foreign-currency accounts at credit institutions or bank branches licensed for foreign exchange transactions in the Vietnamese territory or their foreign-currency accounts overseas for payment for purchased debts and other expenses to credit institutions or foreign bank branches under debt purchase and sale contracts, for cases of using foreign currencies in debt purchase transactions.

3. When recovering purchased debts, recovered amounts shall be transferred into the debt purchaser’s Vietnam-dong account or foreign-currency account (for debts recovered in a foreign currency) at commercial banks or foreign bank branches licensed for foreign exchange transactions in the Vietnamese territory.

4. Purchase and sale of debts arising from offshore lending operation or debts paid on behalf of a guaranteed party being a non-resident in the guarantee operation:

a/ The debt seller shall register the change of offshore loans, recovery of guaranteed debts under current regulations on foreign exchange management of offshore lending and recovery of guaranteed debts for non-residents;

b/ The debt purchaser being a resident shall register a debt recovery plan under current regulations on foreign exchange management of recovery of overseas debts arising from debt purchase and sale operation.

Above are regulations on management of foreign exchange in debt purchase and sale transactions in Vietnam. Please refer to the Circular 09/2015/TT-NHNN for further information.

Best regards!