The central bank has released a circular requiring enterprises taking out medium- and long-term loans from overseas lenders to register at the administering agency if the loans are not guaranteed by the Government.

According to Circular 25/2014/TT-NHNN, enterprises must register such loans, extended short-term loans with the total tenor of over one year, short-term loans that are not extended but the outstanding credit remains after one year from the first date of capital withdrawal except that borrowers can settle the loans within 10 days from the time of one year since the first capital withdrawal date.

Besides, corporate borrowers will have to report to the central bank any revisions to their registration documents as clarified in the circular, which will take effect from November 1.

If enterprises adjust capital withdrawal and debt payment plans within 10 days from those registered at the central bank earlier, they have to inform the new plans to banks and do not need to make registration at the central bank. 

The central bank’s foreign exchange management department will verify applications and revisions for registration of foreign loans from US$10 million (or other foreign currencies with equivalent value) and foreign credit in Vietnam dong.

The central bank’s branches in localities will control applications and revisions for registration of foreign loans of US$10 million or lower.

In addition, corporate borrowers must obtain approval of the central bank’s governor for any foreign loans in dong.

Source: Stoxplus