Decree No. 219/2013/ND-CP on the management of foreign borrowing and repayment by enterprises not guaranteed by the Government

DECREE

VON THE MANAGEMENT OF FOREIGN BORROWING AND DEBT REPAYMENT

of enterprises shall not CThe Government guaranteesh

____________

Pursuant to the Law Torganization C"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."pursuant to the Government's Resolution dated December 25, 2001;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law CThe Governor of the State Bank of Vietnam issues this Circular amending and supplementing certain articles of Circular No. 43/2016/TT-NHNN dated December 30, 2016 issued by the Governor of the State Bank of Vietnam on consumer lending by finance companies."

Pursuant to the Law Article 24Law on State Budget Management dated June 17, 2009;

Pursuant to the Law Domestic air passenger transport service on regular basic economy classLaw on Enterprises dated November 29, 2005;

Pursuant to the Law  HLaw on Cooperatives dated November 20, 2012;

|||依据国家保密法 lon Foreign Exchange N |||dated December 13, 2005 and the Ordinance Amending and Supplementing Certain Provisions of the Ordinance on Foreign ExchangeNo.ãNo. Decision No. 28/2005/PL-UBTVQH11 December 13, 2005;

|||依据国家保密法 lResolution No. 06/2013/UBTVQH13 dated March 18, 2013 amending and supplementing certain provisions;No. and the Ordinance Amending and Supplementing Certain Provisions of the Ordinance on Foreign Exchange;No.The Governor of the State Bank of Vietnam issues a Circular amending and supplementing certain legal normative documents concerning administrative procedures and formalities in the field of foreign exchange management.”

At the proposal of the Governor of the State Bank of VietnamNo.The Government promulgates this Decree on the management of foreign borrowing and debt repayment;

of enterprises not guaranteed by the GovernmentF1. This Decree stipulates the activities of foreign borrowing and debt repayment of enterprises not guaranteed by the Government and the responsibilities of agencies in managing such activities.,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

2. Enterprises within the scope of application of this Decree (hereinafter referred to as "the Borrower") include:

a) Enterprises established and operating in accordance with the Enterprise Law;

b) Credit institutions, branches of foreign banks established and operating in accordance with the Law on Credit Institutions;

c) Cooperatives, cooperative unions established and operating in accordance with the Law on Cooperatives.

1. State management agencies participating in the management of foreign borrowing and debt repayment of enterprises not guaranteed by the Government in accordance with this Decree.

Article 2. Applicability

2. The Borrower carries out foreign borrowing not guaranteed by the Government.

3. Organizations and individuals related to the activities of foreign borrowing and debt repayment of enterprises not guaranteed by the Government.

1. Foreign borrowing is the act of the Borrower receiving credit from Non-residents through the signing and implementation of foreign borrowing agreements in the form of loan contracts, deferred payment purchase and sale contracts, entrusted loan contracts, financial lease contracts, or issuance of debt instruments by the Borrower.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

2. Foreign borrowing not guaranteed by the Government (hereinafter referred to as "self-borrowed, self-repaid foreign borrowing") is the act of the Borrower carrying out foreign borrowing on a self-borrowed, self-repaid basis with foreign lenders.

3. Self-borrowed, self-repaid foreign debt (hereinafter referred to as "self-borrowed, self-repaid foreign debt") includes amounts due for repayment, including principal and interest arising from self-borrowed, self-repaid foreign borrowing of the Borrower in accordance with Vietnamese law.

4. The ceiling of self-borrowed, self-repaid foreign borrowing approved annually by the Prime Minister is the maximum net amount borrowed (actual amount borrowed minus principal repaid) in a year for medium and long-term self-borrowed, self-repaid foreign borrowing.

5. Authorized credit institutions are credit institutions, branches of foreign banks in Vietnam that operate foreign exchange trading and service provision in accordance with the law. 1. The Government manages self-borrowed, self-repaid foreign borrowing within the framework of national foreign debt management, ensuring debt safety within the limits approved by competent authorities, ensuring national financial security and macroeconomic balance.

2. When the Borrower carries out foreign borrowing and debt repayment, it must comply with conditions for foreign borrowing and debt repayment; register the loan, open and use accounts, withdraw funds, and transfer repayment funds, report on the implementation of the loan according to the regulations of the State Bank of Vietnam. The State Bank of Vietnam confirms the registration of the loan within the annual ceiling of commercial foreign borrowing approved by

Article 4. Principles of Management

the Prime Minister.

Loans of enterprises in the form of international bond issuance, issuance of other debt instruments to Non-residents for self-borrowed, self-repaid foreign borrowing must comply with this Decree, regulations on international bond issuance, foreign exchange management, and other relevant laws. 3. Self-borrowed, self-repaid foreign borrowing in the form of deferred payment imports must be consistent with foreign exchange management policies, trade policies, and other relevant legal provisions.

4. The Borrower bears full responsibility under the law for signing and implementing self-borrowed, self-repaid foreign borrowing contracts. The Government does not bear responsibility for the implementation of self-borrowed, self-repaid foreign borrowing by Borrowers.

5. Policies for managing self-borrowed, self-repaid foreign borrowing must coordinate with domestic credit management policies to ensure the objectives of monetary policy and foreign exchange management at each period.

6. In necessary cases, to ensure national financial and monetary security and maintain debt safety indicators,

the Prime Minister decides to apply appropriate measures to manage self-borrowed, self-repaid foreign borrowing.

6. In cases where necessary, to ensure national financial and monetary security and maintain debt safety indicators, the Prime Minister shall decide to apply appropriate measures to manage foreign borrowing and repayment conducted on a self-borrowing, self-repayment basis.

Article 5. Contents of State Management over Activities of Self-Borrowing and Repaying Foreign Debts

1. Drafting, promulgating, and implementing regulatory legal documents on management of self-borrowing and repaying foreign debts.

2. Monitoring cash flows related to self-borrowing and repaying foreign debts for compiling the balance of payments, managing monetary policy, and overseeing foreign exchange.

3. Compiling and reporting information on self-borrowing and repaying foreign debts.

4. Propagating and disseminating policies and laws on management of self-borrowing and repaying foreign debts.

5. Inspecting, auditing, and supervising compliance with laws on management of self-borrowing and repaying foreign debts.

6. Organizing training and capacity building for managing self-borrowing and repaying foreign debts.

7. Handling violations and resolving complaints and denunciations in the implementation of legal provisions on management of self-borrowing and repaying foreign debts.

Chapter II

SPECIFIC PROVISIONS

Article 6. Forecasting Annual Net Foreign Borrowing Levels

1. Basis for forecasting annual net foreign borrowing levels

a) Indicators of debt safety in the five-year socio-economic development plan approved by the National Assembly;

b) Medium-term debt management program for the three consecutive years; The Prime Minister approves;

c) Forecast of macroeconomic expenditures in the planning year;

d) Forecast of Vietnam's balance of payments in the planning year;

e) Forecast of foreign borrowing needs of enterprises, credit institutions, and branches of foreign banks during each period when necessary.

2. The State Bank of Vietnam shall take the lead and coordinate with the Ministry of Finance and the Ministry of Planning and Investment to forecast annual net foreign borrowing levels based on the provisions of Clause 1 of this Article. In cases where necessary, the State Bank of Vietnam shall coordinate with the Ministry of Finance, the Ministry of Planning and Investment, and other relevant agencies to review the foreign borrowing needs of borrowers to forecast annual net foreign borrowing levels.

3. By no later than January 31 each year, the State Bank of Vietnam shall send the Ministry of Finance the forecast of annual net foreign borrowing levels so that the Ministry of Finance can compile and build the annual foreign trade borrowing limit for the country.

Article 7. Monitoring Implementation of Foreign Borrowing Limits

1. The State Bank of Vietnam shall monitor the total amount of new borrowings, drawdowns, and repayments of medium- and long-term self-borrowed and repaid foreign debts; develop appropriate solutions to manage self-borrowed and repaid foreign debts to ensure that the total net borrowing amount of medium- and long-term self-borrowed and repaid foreign debts remains within the self-borrowing and repaid foreign debt limits set forth. the Prime Minister.

2. In cases where economic needs require increasing capital mobilization beyond the annual self-borrowing and repaid foreign debt limits already approved by the Prime Minister, the Ministry of Finance shall take the lead and coordinate with the State Bank of Vietnam and the Ministry of Planning and Investment to calculate and submit to the Prime Minister for decision.

Article 8. Authority of the Prime Minister

1. Approving annual self-borrowing and repaid foreign debt limits within the framework of the national foreign trade borrowing limit.

2. Approving the implementation of appropriate measures to manage self-borrowing and repaid foreign debts when necessary to ensure national foreign debt safety indicators.

3. Directing inspection and audit work on the use of foreign loans by state-owned enterprises.

4. Deciding on inter-ministerial coordination in the management of self-borrowing and repaid foreign debts when necessary.

Article 9. Responsibilities of the State Bank of Vietnam

1. Lead and coordinate with the Ministry of Finance and the Ministry of Planning and Investment to forecast the net level of foreign borrowing and repayment on a self-borrowing, self-repayment basis annually as stipulated in Article 6 of this Decree.

2. Lead and coordinate with the Ministry of Finance, the Ministry of Planning and Investment, and relevant agencies to establish conditions for short-, medium-, and long-term foreign borrowing and repayment on a self-borrowing, self-repayment basis during each period.

3. Guide procedures and organize the implementation of registration, changes to registration, recovery, or termination of the effectiveness of confirmation documents for foreign loans of the Borrower under the self-borrowing, self-repayment method.

4. Lead and coordinate with the Ministry of Finance, the Ministry of Planning and Investment, and other relevant agencies to develop, submit for approval by the Prime Minister, and implement measures to manage foreign borrowing on a self-borrowing, self-repayment basis in accordance with management objectives during each period. 5. Monitor the implementation of limits on foreign borrowing on a self-borrowing, self-repayment basis.

6. Coordinate with the Ministry of Finance to build procedures for collecting, reporting, compiling, sharing, and publishing information on national foreign debt.

7. Summarize the annual situation of foreign borrowing and repayment on a self-borrowing, self-repayment basis by enterprises, credit organizations, and branches of foreign banks, report to the Prime Minister, and send to the Ministry of Finance for compilation of the annual situation of national foreign borrowing and repayment.

7. 10. Implement other state management contents related to foreign borrowing and repayment on a self-borrowing, self-repayment basis as prescribed in Article 5 of this Decree.

1. Lead and coordinate with the State Bank of Vietnam and the Ministry of Planning and Investment to develop and submit for approval

Article 10. Responsibilities of the Ministry of Finance

by the Prime Minister the limit on commercial foreign borrowing of the country including the limit on commercial foreign borrowing on a self-borrowing, self-repayment basis. 2. Lead the development of procedures for collecting, compiling reports, sharing, and publishing information on national foreign debt.

3. Carry out advisory tasks for the Government,

the Prime Minister regarding foreign borrowing on a self-borrowing, self-repayment basis by economic groups and state-owned corporations when necessary according to the requirements of the Government and the Prime Minister during each period. 4. Coordinate with the State Bank of Vietnam to forecast the net level of foreign borrowing on a self-borrowing, self-repayment basis in the planned year.

5. Coordinate with the State Bank of Vietnam to develop and implement measures to manage foreign borrowing and repayment on a self-borrowing, self-repayment basis.

6. Perform other tasks related to the activities of foreign borrowing and repayment by state-owned enterprises as prescribed by law.

Article 11. Responsibilities of the Ministry of Planning and Investment

1. Coordinate with the State Bank of Vietnam to forecast the net level of foreign borrowing on a self-borrowing, self-repayment basis in the planned year.

2. Coordinate with the State Bank of Vietnam to develop and implement measures to manage foreign borrowing and repayment on a self-borrowing, self-repayment basis.

3. Lead and coordinate with agencies managing direct foreign investment to review the need for foreign borrowing on a self-borrowing, self-repayment basis by enterprises with direct foreign investment when necessary.

Article 12. Coordination Responsibilities of the Agency Representing State Capital Ownership

1. Approve plans for foreign borrowing on a self-borrowing, self-repayment basis for medium- and long-term periods of state-owned enterprises within their authority as prescribed by relevant laws before the enterprise signs the Loan Agreement.

2. Manage foreign borrowing on a self-borrowing, self-repayment basis by state-owned enterprises within their authority.

3. Coordinate with the State Bank of Vietnam to implement measures to manage foreign borrowing on a self-borrowing, self-repayment basis.

Coordinate with the State Bank of Vietnam to implement measures for managing foreign borrowing conducted on a self-borrowing, self-repayment basis.

Article 13. Rights of the Borrower

1. Decide on the form of foreign borrowing suitable for needs and purposes of use in accordance with relevant legal provisions.

2. Select credit institutions permitted to implement foreign loans in accordance with legal regulations.

3. Propose opening foreign currency accounts abroad to receive borrowed capital and fulfill commitments under loan agreements with foreign lenders in accordance with the State Bank's regulations.

4. Purchase foreign currencies from permitted credit institutions when performing obligations to repay foreign debts according to commitments and agreements in loan agreements.

Article 14. Obligations of the Borrower

1. Use foreign borrowed capital for the intended purpose, consistent with the borrower’s scope of operation, and comply with legal regulations.

2. Bear responsibility for the legal capacity, financial capacity, and ability to perform foreign loans of the foreign lender.

3. Be responsible for signing and implementing foreign loan agreements and other related agreements. Shall not sign agreements containing contents contrary to Vietnamese laws.

4. Independently bear responsibility for repaying self-borrowed foreign debts, independently repay them, and bear all risks when implementing self-borrowed foreign loans.

5. Comply with the State Bank of Vietnam's regulations on conditions for borrowing and repaying foreign debts; register and change foreign loans; open and use accounts, withdraw funds, and transfer money to repay foreign loans.

6. Comply with this Decree, foreign exchange management regulations, other relevant Vietnamese laws, and international customs in activities of self-borrowing and self-repaying foreign debts.

7. Comply with reporting systems as prescribed by law regarding self-borrowing and self-repaying foreign debts.

8. Be responsible for the accuracy and validity of documents, files, and certificates presented to permitted credit institutions and foreign credit institutions (in cases where foreign currency accounts are allowed to be opened and used abroad) when conducting transactions related to foreign loans.

9. Fulfill requirements of competent authorities during inspections, audits, and supervision of self-borrowing and self-repaying foreign debts as prescribed by law.

Article 15. Inspection, Audit, and Supervision Work

1. The State Bank of Vietnam shall inspect and supervise:

a) Self-borrowing and self-repayment of foreign debts by credit institutions and foreign bank branches.

b) Money transfers related to self-borrowing and self-repayment of foreign debts by borrowers.

c) Compliance with laws on borrowing and repaying foreign debts and foreign exchange management by borrowers in self-borrowing and self-repayment of foreign debts.

d) Provision of foreign exchange services by permitted credit institutions for self-borrowing and self-repayment of foreign debts.

2. The Ministry of Finance shall take the lead and coordinate with relevant agencies to inspect and supervise self-borrowing and self-repayment of foreign debts by state-owned economic groups and corporations that are not credit institutions.

3. The Ministry of Planning and Investment shall take the lead and coordinate with investment management agencies and relevant agencies to inspect and supervise self-borrowing and self-repayment of foreign debts by foreign-invested enterprises that are not credit institutions and foreign bank branches.

4. The State Bank of Vietnam shall take the lead and coordinate with the Ministry of Finance, the Ministry of Planning and Investment, and relevant agencies to conduct inspections on compliance with foreign exchange management regulations for self-borrowing and self-repayment of foreign debts in accordance with current laws on inspection.

5. In necessary cases, the Prime Minister shall decide on organizing inspections and audits of foreign borrowing activities and the use of foreign borrowed capital by self-borrowers.

Article 16. Reporting System

1. Borrowers must implement periodic or ad hoc reporting systems on the situation of withdrawing capital and repaying self-borrowed foreign debts in accordance with the State Bank of Vietnam's regulations.

2. Permitted credit institutions have the responsibility to implement reporting systems in accordance with the State Bank of Vietnam's regulations.

3. Annually, the State Bank of Vietnam shall take the lead and coordinate with relevant agencies to compile reports to the Government on the situation of self-borrowing and self-repayment of foreign debts by enterprises, credit institutions, and foreign bank branches in Vietnam.

Article 17. Handling Violations

Organizations and individuals violating the provisions of this Decree shall be subject to administrative violation handling or criminal responsibility pursuit according to the law, depending on the nature and severity of the violation.

Chapter III

IMPLEMENTING PROVISIONS

Article 18. Effective Date

1. This Decree takes effect from February 15, 2014.

2. Abolish Decree No. 134/2005/NĐ-CP dated November 1, 2005, of the Government promulgating the Regulation on Management of Borrowing and Repaying Foreign Debts and Section 4 Chapter III of Decree No. 160/2006/NĐ-CP dated December 28, 2006, of the Government detailing the implementation of the Foreign Exchange Law.

Article 19. Responsibility for Implementation

1. The State Bank of Vietnam, the Ministry of Finance, the Ministry of Planning and Investment, state-owned asset management agencies, investment management agencies, business registration agencies, and other relevant agencies shall implement guidance on this Decree within their functions, tasks, and powers.

2. Ministers, Heads of Ministries equivalent to ministries, Heads of government agencies, Chairmen of provincial and centrally-administered city People's Committees are responsible for organizing the implementation of this Decree./.