ENTERPRISES ARE ALLOWED TO MANUFACTURE AND/OR TRADE GOODS EXPORTED THROUGH VIETNAM’S BORDER CHECKPOINTS
This is the important content prescribed at the Circular No. 24/2015/TT-NHNN dated December 18, 2015 of the State Bank of Vietnam on foreign currency loans granted to residents by credit institutions and branches of foreign banks, taking effect on January 01, 2016.
In particular, till the end of December 31, 2016, short-term loans granted to meet domestic enterprises’ demands for short-term capital to serve the purpose of implementing their plans to manufacture and/or trade goods exported through Vietnam’s border checkpoints when borrowers’ foreign currency derived from the export turnover is sufficient to repay such loans; on receipt of loans disbursed by credit institutions, borrowers shall sell such borrowed foreign currency to the lending credit institutions in the form of a foreign-exchange spot transaction, unless the loans borrowers are used by the borrowers to make payments in which foreign currency is compulsory.
Besides, the Circular also allows credit institutions granting the foreign currency loans serving certain purposes as specified as short-term, mid-term and long-term loans used as outward remittance for imported goods or services, when the borrowers’ foreign currency derived from their business operation is sufficient to repay such loans; and short-term loans granted to central petroleum importers who are given annual quotas on petroleum import by the Ministry of Industry and Trade to pay for such import when the borrowers’ foreign currency derived from their business operation is not sufficient to repay such loans.
With regard to foreign currency loans, borrowers shall pay the loan principal and interest by the currency that they borrow, loans used as direct outward investments in important national projects shall be considered granting the foreign currency loans serving certain purposes. With regard to foreign currency loans which borrowers lack legal foreign currency revenues to repay, the lending credit institution shall sell foreign currency to the borrower in order for the borrower to repay principal and interest.
This Circular replaces the Circular No. 43/2014/TT-NHNN dated December 25, 2014.
