New regulations on foreign loan approval conditions

Bao Ngoc

15:04, 19/02/2022

On February 14, 2022, the Ministry of Finance issued Circular 09/2022/TT-BTC amending and supplementing a number of main articles of the Regulation on consideration, verification and approval of foreign loans by the automatic method. loans and self-payment of enterprises in which more than 50% of charter capital is owned by the State.

Accordingly, amending a number of conditions for consideration, verification and approval of foreign loans, for example:

- Projects using foreign loans must serve production and business activities in the main business lines of the enterprise, are invested by the enterprise and be included in the 5-year investment and development plan, the production plan and the investment plan. annual business output of the enterprise.

(Currently, according to Circular 153/2014/TT-BTC , only investment projects are included in the investment plan approved by the competent authority).

- Total liabilities of the enterprise (including the value of guarantees for loans to subsidiaries at credit institutions) must not exceed three times the enterprise's equity as recorded in the financial statements. quarterly or annual financial statement of the enterprise at the time closest to the time of application submission.

(Currently, the debt-to-equity ratio in the financial statements of the preceding year and the latest quarterly financial statements of the enterprise does not exceed 3 times).

See details in Circular 09/2022/TT-BTC effective from April 1, 2022.

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