Circular 37: Vietnam’s regulations on account for offshore loan of credit institutions

Currently, offshore loan account means an account that is opened by the Lender at one (01) account service supplying credit institution to perform the fund disbursement, debt collection in regard to the offshore loan.

Specifically, according to Article 15 of Circular No. 37/2013/TT-NHNN of the State Bank of Vietnam, the account for offshore loan of economic organizations is stipulated as follows:

- Before performing transfer transactions relating to the offshore loan, the economic organization shall open one (01) account for offshore loan at one (01) credit institution that supplies account service.

- Transactions relating to the offshore loan (disbursement of loan fund; collection of principal and interest debt and fees) shall be performed via such account for offshore loan.

Besides, Circular No. 37/2013/TT-NHNN also stipulates the account for guarantee of economic organizations as follows:

- Before performing transfer transactions relating to the guarantee to non-residents, the economic organization shall open (01) account for guarantee to non-residents at one (01) credit institution that supplies account service.

- Transactions relating to the guarantee (payment of debt on behalf of the guaranteed party, collection of debt from the guarantor, fees) shall be performed via such account for guarantee.

However, for the case where the economic organization lends to, grants guarantee to a non-resident who is an overseas company where the lender, guarantor contributes capital in the form of direct investment, the account for offshore loan, account for guarantee shall be account of offshore direct investment capital of the economic organization in accordance with current regulations on foreign exchange control applicable to offshore direct investment.

View full text at Circular No. 37/2013/TT-NHNN of the State Bank of Vietnam, effective from October 05, 2015.

- Thu Ba -

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