Vietnam’s regulation on applications for consideration, appraisal and approval of foreign loans

According to the Regulations issued together with Circular No. 153/2014/TT-BTC of the Ministry of Finance of Vietnam, the request dossier for the Ministry of Finance's consideration, appraisal and approval of foreign loans by enterprises is a dossier prepared by the enterprise and submitted to the owner for assessment and approval. The dossier submitted to the Ministry of Finance through the owner includes:

- Letter from the owner requesting the Ministry of Finance's consideration and approval of the enterprise's foreign loan, which includes specific explanations of the ability to meet the conditions for loan consideration and approval as stipulated in these regulations.

- Decision approving the investment project by the competent authority.

- Report on the progress and value of the project implementation (for ongoing projects).

- Decision of the owner approving the plan to mobilize foreign loans.

- Financial plan of the project, including a specific explanation of the total investment amount, capital structure (equity capital, domestic loans, foreign loans through self-borrowing and self-repayment), disbursement schedule for foreign loans, enterprise's counterpart fund arrangement, project effectiveness, ability to repay loans from depreciation and project profits, and other related contents.

- Assessment document by the owner regarding the foreign loan, project effectiveness, loan repayment ability, and financial capacity of the enterprise.

- Loan approval document from the lender, specifying the loan conditions including interest rate, associated fees, loan term, repayment and grace periods, loan repayment schedule, and other relevant conditions in the loan agreement.

- Business registration certificate of the enterprise at the latest date.

- Audited financial reports for the past three consecutive years as required by law, and the most recent quarterly financial report. If the enterprise has not operated continuously for three years, there must be a written commitment from the owner regarding the loan repayment ability, along with the audited financial reports of the parent company for the consecutive year.

View more details at Circular No. 153/2014/TT-BTC of the Ministry of Finance of Vietnam, effective from December 04, 2014.

Ty Na

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