ENTERPRISE ENTITLED TO GOVERNMENT GUARANTEE HAS NOT INCURRED ANY LOSS FOR 3 YEAR
According to the Decree No. 91/2018/ND-CP dated June 26, 2018 of the Government on government guarantee issuance and management:
An enterprise wishing to get a government guarantee for executing an investment project is required to satisfy all following requirements: Has a legal status, is duly established under the law of Vietnam and has been continuously operating for at least 03 years before the date of submission of an application for approval for its proposal for government guarantee; Has not incurred any loss for the last 03 consecutive years according to the auditor’s report; Has no overdue debt; Has a feasible financial plan; Its ratio of owner’s equity to total investment of the project is at least 20%...
With regard to a project of which the investment policy is approved by the National Assembly, or the Government, the guaranteed amount equals the loan principal, or the price of bonds issued, but does not exceed 70% of total investment. With regard to a project in which investment is decided by the Prime Minister, the guaranteed amount equals the loan principal, or the price of bonds issued, but does not exceed 60% of total investment
The obligor must obtain an approval from the Ministry of Finance before conducting the post-investment transfer or assignment of project or its associated assets. The post-investment assignment of assets does not result in changes in the obligor’s obligations towards the Lender and the Ministry of Finance.
