Subjects must register for foreign loans in Vietnam

The foreign loan registration is an administrative procedure at the State Bank of enterprises for foreign medium and long-term loans or extended short-term loans whose total term is over 01 (one) year. In order to satisfy the requirements of customers as well as remove difficulties for customers about the foreign loan registration procedure, Viet An Law Firm collects legal informations about the Subjects must register for foreign loans in Vietnam.

Legal basis

• Circular 12/2014/TT-NHNN stipulating conditions for foreign loans of enterprises not guaranteed by the Government
• Circular No. 12/2022/TT-NHNN dated September 30^th, 2022 guiding the management of foreign exchange for borrowing and paying foreign debts of enterprises.

Foreign loans required to be registered

The following foreign loans are subject must be registered with the State Bank:

• Foreign medium and long-term loans.
• Short-term loans are extended the principal repayment period, the total term of which is over 01 year.
• Short-term loans without extension agreement but with outstanding principal balance (including the interest debt which is entered in principal) at the time of full 01 year from the date of the first capital withdrawal, except for the borrower completes payment of the above principal within 30 working days from the date of the first capital withdrawal.

Subjects must register for foreign loans in Vietnam

Borrowers perform the registration, registration for loan changes, including:

• The borrower signs a foreign loan agreement with the borrower is a non-resident.
• The organization is responsible for the direct debt repayment to the entrusting party in case credit organizations, foreign bank branches signs a contract to receive entrustment for re-lending with the entrusting party who is a non-resident.
• The obligated party must repay the debt under the debt instrument issued outside the territory of Vietnam to the non-resident.
• The lessee in the financial lease contract with the lessor is a non-resident.
• Organizations inheriting foreign loan repayment obligations are subject must be registered, registered for changes under the provisions of this Circular in case the borrower is performing foreign loans, shall carry out divide, split, consolidate or merge.

Duration for sending the dossier for the foreign loan registration

The borrower sends 01 dossier for the foreign loan registration to the competent authority to certify the registration as prescribed in Article 20 of Circular 12/2022/TT-NHNN within the deadline:

• 30 working days from the date of signing the medium and long-term foreign loan agreement;
• 30 working days from the date of signing an agreement to extend a short-term foreign loan into a medium or long-term loan, for a loan specified in Clause 2 Article 11 of this Circular which the date of signing the extension agreement within 01 year from the date of the first capital withdrawal;
• 30 working days from the date of the borrower is granted the Certificate of Business Registration, the License for establishment and operation according to specialized laws, the date of signing the investment contract under the form of public-private partnership (PPP contract), the date of the parties sign a foreign loan agreement to convert the amount of money to be prepared for investment into loan capital (depending on which day comes late), applicable for foreign loans arising from convert the amount of money to be prepared for investment of the project that have been issued the Investment Registration Certificate into the foreign loan capital.
• 60 working days from the date of full 01 year from the date of the first capital withdrawal for:
  • Short-term foreign loans into medium, long-term which the extended agreement signing date after 01 year from the date of the first capital withdrawal;
  • Short-term loans without the extension agreement but with outstanding principal balance (including the interest debt which is entered in principal) at the date of full 01 year from the date of first capital withdrawal.

Duration for confirming the foreign loan registration

The State Bank shall issue a written confirmation or refusal to confirm the loan registration (stating clearly the reason) within the deadline:

• 12 working days from the date of receiving the borrower’s complete and valid dossier in case the borrower has declared loan informations on the Website;
• 15 working days from the date of receiving the borrower’s complete and valid dossier in case the borrower fails to declare loan informations on the Website;

Customers wishing to register for foreign loans, please contact Viet An Law Firm for the best support!