Vietnam: Transactions on accounts for foreign borrowing and foreign debt repayment

According to the Circular No. 03/2016/TT-NHNN of the State Bank of Vietnam, accounts for foreign borrowing and foreign debt repayment in Vietnam dong shall only be used for performing transactions relating to foreign loans as follows:

- Collection from:

+ transferring foreign loan fund withdrawals in the event that the creditor uses Vietnam-dong payment accounts opened at credit institutions, foreign bank branches located within the territory of Vietnam;

+ withdrawing funds from sale of foreign currency to authorized credit institutions located within the territory of Vietnam unless the creditor uses Vietnam-dong payment accounts opened within the territory of Vietnam for loan disbursement purposes;

+ transferring money from Vietnam-dong payment accounts of the borrower.

- Spending on:

+ transferring money to Vietnam-dong payment accounts of the borrower to pay debts (principal, interest) in the event that the borrower uses Vietnam-dong payment accounts for the purpose of recovering debts agreed upon in loan agreements;

+ buying foreign currency to pay debts (principal, interest) incurred from foreign loans unless the borrower uses Vietnam-dong payment accounts for the purpose of recovering debts agreed upon in loan agreements;

+ paying debts owed to the guarantor under the provisions of Chapter V hereof;
+ paying fees denominated in Vietnam dong, and buying foreign currency to pay fees denominated in foreign currency in relation to foreign loans;

+ transferring money to Vietnam-dong payment accounts of the borrower.

View more details at the Circular No. 03/2016/TT-NHNN of the State Bank of Vietnam, effective from April 15, 2016.

-Thao Uyen-

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