Circular No. 03/2016/TT-NHNN dated 26 February 2016 providing guidelines on foreign loan registration.

CIRCULAR NO. 03/2016/TT-NHNN DATED 26 FEBRUARY 2016 PROVIDING GUIDELINES ON FOREIGN LOAN REGISTRATION

Circular No. 03/2016/TT-NHNN dated 26 February 2016 providing guidelines on foreign loan registration. The State Bank of Vietnam (“SBV”) has issued Circular No. 03/2016/TT-NHNN providing guidelines on the management of foreign exchange of foreign borrowing and repayment not guaranteed by the government. Under Circular 03, foreign loan with the term more than 12 months (including its extension) is required to register with the SBV. The highlight of the Circular 03 is that the borrower may register online with the SBV through its website www.sbv.gov.vn or www.qlnh-sbv.cic.org.vn (the hard copy of the application dossier shall be couriered to the SBV upon its confirmation of the online registration account).  The borrower shall use its online registration account to submit quarter reports or carry out the registration on changes of its loan. In addition to online registration, the borrower still can conduct the registration by submitting the application dossier in person at the SBV as before.

The application dossier to register foreign loan includes:

• Registration form
• Business license of borrower
• Borrowing and repayment plan
• Meeting minutes and resolutions of the Board of Directors approving the foreign loan
• Loan agreement
• Guarantee agreement (if any)
• Certification by a commercial bank on the opening of foreign loan bank account

SBV shall issue a written confirmation or rejection on the registration of the foreign loan within 12 working days (applied to online registration) or 15 working days (applied to direct registration). Borrower shall have to notify the SBV if the withdrawal or repayment plan has been changed within 10 days compared to registered plan with the SBV. Other than that, any changes relating to the loan must be registered with the SBV within 30 days from the date of such change. Circular 03 also provides that the withdrawal and repayment of the foreign loan must be made through foreign loan bank account registered with the SBV. Borrower must conduct quarterly reports on the foreign loan to the SBV by online or direct submission. Circular 03 shall come into effective from 15 April 2016.  For more detail or instruction on foreign loan registration (including unregistered overdue loans), please contact Ms. Diep Hoang at diep.hoang@dilinh.com. Website: https://dilinh.com/