Vietnam: 09 responsibilities of borrowers in borrowing of foreign loans and payment of foreign debts

Specifically, according to Article 14 of Decree No. 219/2013/ND-CP of Vietnam’s Government, 09 responsibilities of borrowers in borrowing of foreign loans and payment of foreign debts are as follows:

1. To use foreign loans for proper purposes and within the scope of their operation in accordance with law.

2. To take responsibility for the legal capacity, financial capacity and ability to provide loans of foreign lenders.

3. To take responsibility for the signing and implementation of foreign loan agreements and other relevant agreements. To refrain from signing agreements with contents contrary to Vietnamese law.

4. To pay foreign debts and bear all risks when borrowing foreign loans by the mode of self-borrowing and self-payment.

5. To comply with the State Bank of Vietnam’s regulations on conditions for borrowing of foreign loans and payment of foreign debts; to register, or register the change of, foreign loans; to open and use accounts, withdraw capital and transfer money for debt payment for foreign loans.

6. To comply with this Decree, regulations on foreign exchange management, other relevant laws of Vietnam and international practices in the borrowing of foreign loans and payment of foreign debts by the mode of self-borrowing and self-payment.

7. To comply with regulations on reporting on the borrowing of foreign loans and payment of foreign debts by the mode of self-borrowing and self-payment.

8. To take responsibility for the accuracy and validity of produced dossiers, documents and papers of licensed credit institutions or overseas credit institutions (in case they are permitted to open and use overseas foreign-currency accounts) when conducting transactions related to foreign loans.

9. To comply with requests of competent agencies conducting inspection, examination and supervision of the borrowing of foreign loans and payment of foreign debts in accordance with law.

View more details at Decree No. 219/2013/ND-CP of Vietnam’s Government, effective from February 15, 2014.

Ty Na

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