Decision No. 980/2001/QD-NHNN stipulates foreign loan costs for enterprises, including interest rates, fees, and related expenses, based on international capital markets. This decision applies to enterprises designated in Circular No. 03/1999/TT-NHNN7 of the State Bank of Vietnam.
Scope of application
Enterprises specified in Point 1, Section I, Chapter I of Circular No. 03/1999/TT-NHNN7 of the State Bank of Vietnam.
Key points
- Enterprises shall examine and decide on foreign loan costs (interest rates, fees, and related expenses) based on international capital markets and international practices.
- borrowing purposes, and procedures for registering foreign loans must comply with the regulations of the State Bank as set out in Circular No. 03/1999/TT-NHNN7.
🌐 Social impact of this document
- Enterprises have additional freedom in deciding foreign loan costs, helping to optimize costs and increase financial management flexibility.
- However, enterprises must be responsible for their decisions and comply with the regulations of the State Bank.
❓ Frequently asked questions
How do enterprises examine foreign loan costs?
Enterprises need to refer to lending interest rates on international capital markets and various fees according to international practices at the time of signing the loan agreement to determine costs.
Which enterprises are subject to this regulation?
The subjects of application are enterprises specified in Point 1, Section I, Chapter I of Circular No. 03/1999/TT-NHNN7 of the State Bank of Vietnam.
What are the procedures for registering foreign loans?
Enterprises must comply with the regulations of the State Bank as set out in Circular No. 03/1999/TT-NHNN7 guiding foreign borrowing and repayment by enterprises.
When does this decision take effect?
This decision takes effect fifteen days from the date of signature and is applicable until replaced by another decision of the Governor of the State Bank of Vietnam.
What decision does this replace?
This decision replaces Decision No. 308/1999/QD-NHNN7 dated September 1, 1999, of the Governor of the State Bank of Vietnam regarding the regulation of conditions for foreign borrowing.
Full text
Pursuant to …;
Regarding the provisions on foreign loan costs for Enterprises
GOVERNOR OF THE STATE BANK OF VIETNAM
Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government stipulatingthe tasks, powers, responsibilities for management of Ministries, sectoralMinistries;
Pursuant to Decree No. 90/1998/NĐ-CP dated November 17, 1998 of theGovernment promulgating the Regulation on management of foreign borrowing anddebt repayment;
At the proposal of the Director of the Foreign Exchange Management Department
DECISION:
Article 1:The Enterprise shall examine and decide on its own regarding the cost of foreignloans (including interest rates, fees, and related expenses) based on referencesto international capital market lending rates and types of fees according tointernational practices at the time of signing the loan agreement and shall bearresponsibility for its decision.
Article 2: The Enterprise referred to in this Decision is those Enterprises specified inPoint 1, Section I, Chapter I of Circular No. 03/1999/TT-NHNN7 dated August12, 1999 of the State Bank of Vietnam guiding foreign borrowing and debtrepayment by Enterprises.
Article 3:The borrower, purpose of borrowing, and procedures for registering foreignloans must be carried out strictly in accordance with the regulations of theState Bank of Vietnam as stipulated in Circular No. 03/1999/TT-NHNN7 datedAugust 12, 1999 guiding foreign borrowing and debt repayment by Enterprises.
Article 4: This Decision takes effect fifteen days from the date of signature and shallbe implemented until superseded by another regulation of the Governor of theState Bank of Vietnam.
Article 5:This Decision replaces Decision No. 308/1999/QĐ-NHNN7 dated September 1,1999 of the Governor of the State Bank of Vietnam on the conditions for foreignborrowing.
Article 6:The Heads of the Office, Inspectorate of the State Bank of Vietnam, Heads ofunits under the State Bank of Vietnam, Branch Governors of the State Bank ofVietnam in provinces and centrally-administered cities; General Directors(Directors) of Credit Organizations and related Enterprises within theirfunctions and duties shall be responsible for implementing this Decision./.
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