THE STATE BANK OF VIETNAM
Circular No. 18/2011/TT-NHNN of August 23, 2011, guiding foreign exchange management for mediumand long-term overseas loans of commercial banks being state enterprises
Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;
Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;
Pursuant to December 13, 2005 Ordinance No. 28/2005/PL-UBTVQH11 on Foreign Exchange;
Pursuant to the Government’s Decree No. 134/2005/ND-CP of November 1, 2005, promulgating the Regulation on borrowing of overseas loans and payment of overseas debts;
Pursuant to the Government’s Decree No. 160/2006/ND-CP of December 28, 2006, detailing the implementation of the Ordinance on Foreign Exchange;
Pursuant to the Government’s Decree No. 96/2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;
Pursuant to the Prime Minister’s Directive No. 1568/CT-TTg of August 19, 2010, on implementation of the Political Bureau’s Conclusion No. 78KL/TW of July 26, 2010;
The State Bank of Vietnam (below referred to as the State Bank) guides foreign exchange management for medium- and long-term overseas loans of commercial banks being state enterprises as follows:
Article 1. Scope of regulation and subjects of application 1. This Circular stipulates principles, order and procedures for consideration and borrowing of medium- and long-term overseas loans without government guarantee by commercial banks being state enterprises.
2. Government-guaranteed overseas loans of commercial banks being state enterprises comply with current regulations on grant and management of government guarantee.
3. This Circular applies to commercial banks being state enterprises and organizations and individuals involved in the borrowing of medium- and long-term overseas loans without government guarantee by commercial
banks being state enterprises.
Article 2. Interpretation of terms
In this Circular, the terms below are construed as follows:
1. Commercial banks being state enterprises (below referred to as stateowned commercial banks) are commercial banks established and operating under the Law on Credit Institutions with over 50% of their charter capital owned by the State.
2. Overseas loan agreement means a written contract or agreement on borrowing of medium- and long-term overseas loans or a debt instrument having capital withdrawal effect and creating debt payment obligation which provides terms and conditions on overseas loans. 3. Modification agreement means a written agreement between related parties in an overseas loan transaction on amendments to a signed overseas loan agreement.
4. Medium- and long-term overseas loans of state-owned commercial banks (below referred to as overseas loans) are state-owned commercial banks’ loans with a term exceeding one (1) year provided by overseas credit institutions or financial institutions being non-residents or overseas loans obtained through issue of international bonds on the international capital market.
5. Safety ratios in credit institutions’ operations (below referred to as safety ratios) are ratios determined under the State Bank’s current regulations on safety ratios in credit institutions’ operations. 6. Loan value is the maximum capital amount to be withdrawn for an overseas loan indicated in an overseas loan agreement or international bond issue plan.
Article 3. Principles of borrowing of medium- and long-term overseas loans by state-owned commercial banks
1. State-owned commercial banks may sign overseas loan agreements only after obtaining the State Bank’s written approval under Chapter II of this Circular.
2. After obtaining the State Bank’s written approval, state-owned commercial banks shall sign overseas loan agreements and register overseas loans under Chapter III of this Circular.
3. State-owned commercial banks are obliged to properly and effectively use loans and pay loan principals and interests as committed in overseas loan agreements, bear all risks and take responsibility before law for the borrowing of overseas loans and payment of overseas debts.
4. In case of issuing international bonds, state-owned commercial banks shall comply with Chapter II of this Circular in proposing the State Bank to approve international bond issue plans. Registration of quota certificates, registration of international bonds to be issued and other relevant matters comply with the State Bank’s guidance on foreign exchange management for issue of international bonds. 5. Withdrawal of capital and payment of overseas loan principals and interests may be conducted only after the registration of overseas loans is certified by the State Bank. State-owned commercial banks may pay charges related to overseas loans only after obtaining the State Bank’s approval of the signing of overseas loan agreements............
Please, contact us to get this full document
Dragon Law Firm
lawyer, lawyers, Vietnam laws, Vietnamese law, Law firm, Vietnam law firm, Vietnam law firms, law firm in Vietnam, law firms in Vietnam, law firm in Hanoi, Hanoi law firm, Vietnam law, Vietnamese laws, Vietnamese lawyer, Vietnamese lawyers, legal documents, Vietnam legal documents