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INSTRUCTIONS FOR ONLINE REGISTRATION OF FOREIGN LOAN
Applying for a foreign loan to implement a project is a common activity among investors. So, what do investors need to do to register for a foreign loan? They will need to register the foreign loan with the competent authority. In the article below, Siglaw law firm will provide instructions for registering foreign loans online to help investors clearly understand the relevant regulations on this issue..
- Instructions on procedures for registering foreign loans online with the State Bank
Procedures for registering foreign loans with the State Bank are regulated by the following steps as prescribed in Article 15 of Circular 12/2022/TT-NHNN:
Step 1: Prepare an Application for a foreign loan not guaranteed by the Government:
If the borrower has previously declared loan information on the website https://qlnh-sbv.cic.org.vn/qlnh/ , they print the application from the website qlnh-sbv.cic.org.vn, then signed and sealed.
In case the borrower has not declared loan information on the website, they must complete the Foreign Loan Application form according to the form in Appendix 01, issued with Circular 12/2022/TT-NHNN.
Step 2: Submit documents according to the prescribed deadline:
The borrower must send a set of foreign loan registration documents to the competent authority to confirm registration, within the following deadlines:
- 30 working days from the date of signing the medium and long-term foreign loan agreement.
- 30 working days from the date of signing the agreement to extend short-term foreign loans to medium or long-term, for loans specified in Clause 2, Article 11 of Circular 12/2022/TT-NHNN on which the extension agreement is signed within 01 year from the date of first capital withdrawal.
- 30 working days from the date the borrower is granted a Business Registration Certificate, License for establishment and operation according to specialized laws, and date of signing an investment contract according to the public-private partnership method (PPP contract) , the date the parties sign a foreign loan agreement to convert the amount of investment preparation into loan capital, applicable to foreign loans arising from the transfer of money for investment preparation of granted projects. Certificate of investment registration as foreign loan capital.
- 60 working days from the date of 1 year from the date of first capital withdrawal for:
- Loans specified in Clause 2, Article 11 of Circular 12/2022/TT-NHNN with the date of signing the extension agreement after 01 year from the date of first capital withdrawal.
- Loans specified in Clause 3, Article 11 of Circular 12/2022/TT-NHNN.
Step 3: Get results:
The State Bank confirms registration or refuses registration:
Within about 12 working days from the date of receipt of complete and valid documents from the borrower (for the party that has declared information on the website).
Within about 15 working days from the date of receipt of complete and valid documents from the borrower (for parties that have not declared information on the website).
Within about 45 working days from the date of receipt of the borrower’s complete and valid dossier, in case the loan is in Vietnamese Dong, it must be reviewed and approved by the Governor of the State Bank according to the provisions of Clause 3. Article 20 Circular 12/2022/TT-NHNN.
Step 4: The agency confirms registration and enters information:
The competent authority checks the consistency and accuracy of the dossier with the information on the website, updates the dossier processing status on the website for the borrower to follow (for the party that has declared the information). information on the website before submitting the foreign loan registration application).
Enter relevant loan information on the website to create a loan code and store information in the foreign loan and debt repayment database of businesses not guaranteed by the Government in case the borrower does not declare. Report information on the website before submitting the foreign loan registration application, update the application processing status on the website for the borrower to monitor.
Note: For loans in Vietnamese Dong: Must be approved by the Governor of the State Bank according to regulations.
- Note when registering for a foreign loan online
- Classification of foreign loans
According to the provisions of Article 1 and Article 2 of Circular 08/2023/TT-NHNN, two types of loans are mentioned as follows:
- Self-borrowed and self-paid short-term foreign loans (called short-term foreign loans): This is a foreign loan not guaranteed by the Government, with a loan term of no more than 01 year.
- Medium- and long-term foreign loans that are self-borrowed and self-repaid (called medium- and long-term foreign loans): This is a foreign loan that is not guaranteed by the Government, with a loan term of over 1 year.
- Regarding foreign loan agreements
Concept of foreign loan agreement: According to Article 9 of Circular 08/2023/TT-NHNN, a foreign loan agreement is one or more documents recording the agreement between the parties on the rights and responsibilities of each party. beside.
Form of foreign loan agreement: must be made in writing. In case the parties agree in the form of electronic data messages, they must comply with the provisions of law on electronic transactions.
The regulations also clearly state that the signing of a foreign loan agreement must be done before the time of capital withdrawal from the loan. In case the agreement is signed on the date of capital withdrawal, the parties need to fully comply with the conditions prescribed by law.
- Limit on foreign borrowing
Article 18 of Circular 08/2023/TT-NHNN regulates foreign borrowing restrictions for borrowers, including enterprises, cooperatives, and cooperative unions.
- For Investment Projects:
The principal balance of the borrower’s domestic and foreign medium and long-term loans (including extended short-term loans and overdue short-term loans converted into medium and long-term loans) serves the investment project. Investment does not exceed the loan limit of the investment project.
The loan capital limit of an investment project specified in Point a, Clause 1, Article 18 is the difference between the total investment capital of the project and the investor’s contributed capital, recorded in the Investment Certificates and Certificates of Investment. investment registration certificate, and investment policy approval document.
- For Production, Business and Other Project Plans:
The borrower’s balance of medium and long-term domestic and foreign loans (including extended short-term loans and overdue short-term loans converted into medium and long-term loans) for this purpose does not exceed the total demand. The loan request has been approved by the competent authority in the Plan for using foreign loans according to the provisions of law.
- For Foreign Debt Restructuring:
The maximum amount of foreign loans for the purpose of restructuring foreign debt must not exceed the total value of the outstanding principal, interest, and unpaid fees of the existing foreign debt along with the fees of the loan. new loan, determined at the time of restructuring.
In case the new foreign loan is a medium or long-term loan, the borrower must repay the existing foreign loan within 05 working days from the date of capital withdrawal. After the 5-day period mentioned above, the borrower must ensure compliance with the loan limits specified in the above cases.
Short-term foreign loans are not subject to regulations on foreign loan limits in the following cases: foreign loans to implement investment projects; foreign loans to implement the borrower’s production, business, and other projects.
- Foreign loan reporting regime after completing loan registration:
The parties should pay attention to complying with the Reporting regime after completing the foreign loan registration so that state agencies can clearly understand. Specifically, Article 41 of Circular 12/2022/TT-NHNN stipulates that:
- Every month, no later than the 5th of the month following the reporting period, the borrower needs to make an online report on the implementation of short, medium and long-term loans on the website.
- In case the website has technical problems and the online report cannot be sent, the borrower will have to send a written report according to the form in Appendix 05.
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