Foreign Loans Vietnam New Regulations (Circular 03/2016 /TT-NHNN)
The State Bank of Vietnam has issued Circular 03/2016 /TT-NHNN on foreign loans. The new Circular will take effect from 15 April, and replace Circulars 09/2004/TT-NHNN and 25/2014/TT-NHNN, thereby consolidating the regulations on this issue.
Circular No.03/2016/TT-NHNN includes 8 Chapters, 51 Articles with main substances as follows:
Registration procedures, registration on changing foreign loans of the enterprise which are not guaranteed by the government;
Opening and using borrowing and repayment account at the bank providing account services in Vietnam;
Withdrawing capital, repayment and money remittance of foreign loans;
Regulation on forex management of those transactions relating to guarantee for overseas loans;
Providing and managing information on the official website of management of borrowing and repayment of oversea loans of enterprises without government guarantee (hereafter called as website);
The procedure of statistic reporting on borrowing and repayment of offshore loans of enterprises without government guarantee.
The Circular requires new content on IT application in the management of borrowing and repayment of overseas loans via website. This circular’s requirements on using website is expected to support the management of database on borrowing and repayment of overseas loans applied to enterprises not guaranteed by the government. It also helps to reform administrative procedures in managing overseas borrowing and repayment of the enterprise as well as of the SBV in line with the set orientation of the Government on administrative reform.