MID-TERM AND LONG-TERM LOANS MUST BE REGISTERED WITH THE SBV
On February 26, 2016, the State Bank of Vietnam issued the Circular No. 03/2016/TT-NHNN providing several instructions on foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises.
In accordance with this Regulation’s regulations, mid-term and long-term foreign loans; renewed short-term loans which have more than 01 (one) year of maturity term and short-term loans which are not covered by any loan renewal contract but remain the outstanding principal owed on the anniversary of the date of first fund withdrawal in a full 01 (one) calendar year, except to the extent that borrowers have already fulfilled their debt obligations within a permitted duration of 10 (ten) days after the anniversary of the date of first fund withdrawal in a full 01 (one) year are subjected to registration with the State Bank.
The borrower may choose to carry out declaration of information for registration or registration for changes of loans, and preparing review reports on effecting of conventional loans in one of the forms of online declaration by means of websites; conventional declaration through any non-website means. The borrower may choose online declaration of registration information rather than conventional declaration thereof. Where such choice is made, the borrower shall not be allowed to change to the conventional declaration form. And the State Bank should encourage the borrower to choose the online declaration form.
If there is any change to contents relating to loans referred to in the confirmation of foreign loan registration given by the State, the borrower shall be responsible for making registration for changes of his foreign loan with the State Bank. If the plan for fund withdrawal, debt repayment and actual fee remittance is changed within a permitted duration of 10 (ten) days as against the one previously approved by the State Bank, the borrower shall be responsible for notifying in writing the account service provider to carry out fund withdrawal and debt repayment according to the changed plan; By doing so, registration for changes of such loan with the State Bank shall not be required. When having change of the borrower's address in the city or province where the borrower’s head office is located; or change of the creditor, related information about creditors…. shall not apply for registration of changes of loans.
This Circular takes effect on April 15, 2016.
