Legal basis

• Circular 45/2011/TT-NHNN Regulations on foreign exchange management for the lending and recovery of foreign debts of credit institutions
• Circular 13/2016/TT-NHNN Amending and supplementing some articles of Circular 45/2011/TT-NHNN dated December 30, 2011, of the Governor of the State Bank on regulations on foreign exchange management for lending and recovery of foreign debts of credit institutions

The procedures

Step 1: The foreign lending credit institution sends the application to the loan registration confirmation agency within 30 (thirty) days from the date of signing the loan agreement (in case the loan is not guaranteed). guarantee) or within 30 (thirty) days from the date the guarantee organization signs the guarantee document (in case the loan is guaranteed).

Step 2: In case of needing more information and other conditions to have sufficient grounds to confirm or refuse to confirm registration, the State Bank of Vietnam shall notify in writing the credit institution within 10 days. working from the date of receipt of the credit institution’s application.

Step 3: The State Bank of Vietnam shall issue a written confirmation or refusal to confirm the registration of foreign loans within 30 (thirty) days from the date of receipt of a complete and valid application.

The dossier

• Application form for the offshore loan (form Appendix 01, Circular 45/2011/TT-NHNN)
• Report assessing the impact of offshore loans on compliance with regulations on minimum capital adequacy ratio; credit limit for one customer (foreign borrower) and related person; the maximum ratio of short-term funds used for medium and long-term loans; the ratio of outstanding loans to total deposits; affordability ratio; foreign currency status of credit institutions lending abroad.
• The report on the appraisal of offshore loans includes the following main contents: assessment of feasibility and efficiency of investment projects, production and business plans of foreign borrowers; related risks, ability to recover principal and interest in full and on time; the suitability of the loan value and the scale of the project using the loan; loan security and other related matters.
• A report on foreign currency loans, including contents related to the size, structure of currencies, and term structure between mobilized capital and loans in foreign currencies at the time of signing the loan agreement.
• A copy and Vietnamese translation of the establishment decision or the investment registration certificate of the foreign borrower following the regulations of the host country.
• A copy of the offshore investment registration certificate of the Vietnamese investor owning the investment capital and directly participating in the management of investment activities at the foreign borrower.
• Copy and Vietnamese translation (certified by an authorized representative of the credit institution) of the signed loan agreement.
• A copy and Vietnamese translation (certified by an authorized representative of the credit institution) of documents and agreements on guaranteeing and securing loans abroad (if any).

The competent authority

The State Bank of Vietnam

Time

Within 30 days from the date of receipt of complete and valid dossier.

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