Decision No. 161/QD-NH7 Regarding the supplementation and amendment of certain points of Circular No. 07/TT-NH7 dated March 26, 1994 guiding the management of foreign borrowing and repayment by enterprises.

Pursuant to …;

OF THE HEAD OF THE STATE BANK

Regarding the supplementation and amendment of certain points of Circular No. 07/TT-NH7 dated March 26, 1994 on guiding the management of foreign borrowing and repayment by enterprises

guidelines for the management of foreign borrowing and debt repayment by enterprises

_______________________

 GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the State Bank Law dated May 23, 1990;

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management by ministries and ministerial-level agencies;

At the proposal of the Director of the Foreign Exchange Management Department.

DECISION:

Article 1. Now, we amend and supplement Points 20, 21, 23, and 31 of Circular No. 07/TT-NH7 dated March 26, 1994 as follows:

1.1- Point 20 is amended as follows:

- The loan application file for foreign capital of state-owned enterprises for investment in construction and production and business activities shall include:

- A loan application for foreign capital sent to the Governor of the State Bank (according to the prescribed form).

- A certified copy of the enterprise establishment license issued by the competent authority.

- The business plan and debt repayment plan of the enterprise approved by the direct superior management agency.

- Bank guarantee if required by the lender.

- The final agreement with the foreign lender regarding conditions such as interest rates, fees, loan term, repayment and grace period, guarantee conditions, withdrawal and repayment conditions, and other conditions related to the loan contract to be signed.

- For state-owned enterprises borrowing for investment projects in construction, the economic and technical feasibility study must be reviewed and approved by the competent authority.

- A confirmation letter stating that there is no outstanding tax or overdue bank debt.

1.2- Point 21 is supplemented as follows:

The loan application file for foreign capital of credit organizations permitted to operate internationally includes:

- A loan application for foreign capital.

- A draft credit contract.

- An explanation of the use of borrowed funds.

- A summary of the credit organization's assets proving that the raised capital does not exceed twenty times the equity and reserve fund.

1.4- Point 23 is amended as follows:

Non-state-owned enterprises may directly borrow foreign capital under the self-borrowing and self-repayment method with conditions and documents as stipulated for state-owned enterprises.

1.5- Point 31 is amended as follows:

After receiving approval from the Governor of the State Bank, the director of the provincial branch of the State Bank will conduct inspections and audits of the withdrawal, use of foreign loans, and repayment plans of enterprises in their locality. Inspection results, handling, and recommendations are reported to the Central State Bank.

Article 2: This Decision takes effect from the date of signature.

Article 3: Heads of Departments and Bureaus, Directors of the Governor's Office, Chief Inspectors of the State Bank, Directors of Provincial Branches of the State Bank, and General Managers of Commercial Banks within their respective functions are responsible for organizing, implementing, and enforcing this Decision.