Vietnam: Responsibilities of the Ministry of Finance in the self-borrowing of foreign loans and self-payment of foreign debts

According to Article 10 of Decree No. 219/2013/ND-CP of Vietnam’s Government, responsibilities of the Ministry of Finance in management of enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee are as follows:

- To assume the prime responsibility for, and coordinate with the State Bank of Vietnam and the Ministry of Planning and Investment in, submitting to the Prime Minister for approval the limits of national foreign commercial loans, including the limit of foreign commercial loans borrowed by the mode of self-borrowing and self-payment.

- To assume the prime responsibility for developing a process of collecting, summarizing, reporting, sharing and publishing information on national foreign loans.

- To advise the Government or the Prime Minister on the borrowing of foreign loans by state economic groups and corporations by the mode of self-borrowing and self-payment when necessary at the request of the Government or the Prime Minister in each period.

- To coordinate with the State Bank of Vietnam in forecasting the level of net foreign loans borrowed by the mode of self-borrowing and self-payment in the plan year.

- To coordinate with the State Bank of Vietnam in working out, and organizing the implementation of, measures to manage the borrowing of foreign loans and payment of foreign debts by the mode of self-borrowing and self-payment.

- To perform other tasks related to the borrowing of foreign loans and payment of foreign debts by state enterprises in accordance with law.

Besides, Decree No. 219/2013/ND-CP also stipulates responsibilities of the Ministry of Planning and Investment as follows:

- To coordinate with the State Bank of Vietnam in forecasting the level of net foreign loans borrowed by the mode of self-borrowing and self-payment in the plan year.

- To coordinate with the State Bank of Vietnam in working out, and organizing the implementation of, measures to manage the self-borrowing of foreign loans and self-payment of foreign debts.

- To assume the prime responsibility for, and coordinate with management agencies in charge of foreign direct investment in, reviewing demands of foreign-invested enterprises for foreign loans to be borrowed by the mode of self-borrowing and self-payment, when necessary.

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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