Vietnam’s regulation on proposal for loan syndication of credit institutions

08:09, 05/07/2016

This is a notable content specified in Circular No. 24/2016/TT-NHNN of the State Bank of Vietnam on amendment and supplement to a number of articles of Circular No. 42/2011/TT-NHNN on grant of syndicated loans to clients by credit institution.

Specifically, regulations on grant of syndicated loans to clients by credit institution are amended in Circular No. 24/2016/TT-NHNN of the State Bank of Vietnam as follows:

- After receiving the application file for credit of the customer, the credit institution shall proceed with appraising the file, the feasibility and application for credit of the customer.

- Where it is necessary to offer syndicated loans, credit institutions shall send invitation to participate in syndicated loans and relevant documents attached thereto to those that are expected to participate in syndicated loans.

Also according to Circular No. 24/2016/TT-NHNN, in either cases where a syndicated loan is granted by a group of lenders including foreign credit institution(s) or syndicated loan is granted for the purpose of outward investment, entities specified in clause 1 Article 1 hereof shall comply with regulations on foreign currency management, provisions hereof and other relevant regulations of laws.

View more details at Circular No. 24/2016/TT-NHNN of the State Bank of Vietnam, effective from June 30, 2016.

-Thanh Lam-

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