Vietnam: Inspection, examination and supervision of borrowing of foreign loans and payment of foreign debts

According to Article 10 of Decree No. 219/2013/ND-CP of Vietnam’s Government, inspection, examination and supervision of management of enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee are prescribed as follows:

- The State Bank of Vietnam shall examine and supervise:

+ The borrowing of foreign loans of credit institutions and foreign bank branches by the mode of self-borrowing and self-payment;

+ Money transfer by borrowers related to foreign loans borrowed and debts paid by the mode of self-borrowing and self-payment;

+ The borrowers’ compliance with regulations on the self-borrowing of foreign loans and self-payment of foreign debts and regulations on foreign exchange management;

+ The provision of foreign exchange services by licensed credit institutions for the self-borrowing of foreign loans and self-payment of foreign debts.

- The Ministry of Finance shall assume the prime responsibility for, and coordinate with related agencies in, examining and supervising the borrowing of foreign loans by the mode of self-borrowing and self-payment by state economic groups and corporations other than credit institutions.

- The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with investment management agencies and related agencies in, examining and supervising the borrowing of foreign loans by the mode of self-borrowing and self-payment by foreign-invested enterprises other than credit institutions and foreign bank branches.

- The State Bank of Vietnam shall assume the prime responsibility for, and coordinate with the Ministry of Finance, the Ministry of Planning and Investment and related agencies in, inspecting the observance of regulations on foreign exchange management with regard to the borrowing of foreign loans by the mode of self-borrowing and self-payment in accordance with the current law on inspection.

Note: When necessary, the Prime Minister shall decide on inspection or examination of the self-borrowing and use of foreign loans by borrowers.

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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