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FOREIGN LOAN REGISTRATION REPORT FORM
In the process of economic development and expanding the scale of business activities, the need for investment capital is increasing, finding financial sources from abroad is becoming an important solution and measure for many people. businesses and organizations. However, it is not simply about signing a loan application but also requires legal guarantees and monitoring from state agencies. Carrying out a foreign loan registration report is mandatory when businesses borrow foreign capital without being guaranteed by the Government
- Concept of foreign loans
Foreign loans are self-borrowed and self-paid loans of enterprises that must be registered with the State Bank, including medium-term and long-term foreign loans. The loan term is determined from the expected date of first capital withdrawal to the expected date of final principal repayment on the basis of the provisions in the foreign loan agreement.
According to regulations, businesses with short-term or long-term foreign loans are required to register and grant access accounts on the State Bank’s website to implement loan reporting regimes.
- Documents to register foreign loans
- Loan application form according to the form in Appendix 1 of Circular 12/2016/TT-NHNN;
- Business registration certificate/establishment license or other equivalent documents (copy);
- Document proving the purpose of the foreign loan (copy or original);
- Foreign language copy and Vietnamese translation of foreign loan agreement and agreement to extend short-term loans to medium or long-term foreign language copy and Vietnamese translation;
- Foreign language copy and Vietnamese translation of the guarantee commitment document in case the foreign loan is guaranteed;
- Confirmation from the bank providing account services on the situation of capital withdrawal and debt repayment (principal, repayment) at the time of loan registration
- Documents and documents proving legally distributed profits in Vietnam Dong from direct investment activities of the lender being a foreign investor contributing capital to the borrower and confirmation from the service providing bank account on the situation of division and transfer of profits to the country of the lender to prove the loan disbursement in case of foreign loans in Vietnam Dong according to regulations on conditions for foreign loans in Vietnam Dong;
- Document explaining the need for foreign loans in Vietnam Dong in case of foreign loans in Vietnam Dong must be approved by the Governor of the State Bank
- Form of foreign loans registration report
Please refer to the foreign loan registration report form Appendix 4A Circular 12/2016/TT-NHNN
- Instruction for reporting on foreign loan registration
Accordingly, – Column 7 – Change: other increase/decrease adjustments of outstanding debt of foreign loans in the reporting period but do not generate cash flow due to: (i) exchange rate fluctuations when converting from currency borrowing to USD between reporting periods; (ii) adjustments due to misreporting in prior period(s); (iii) short-term loans transferred to medium and long-term; (iv) converting loan capital into contributed capital; (v) debt cancellation
Column 7 receives value (+) if there is an increase, value (-) if there is a decrease. The borrower clearly reports the content of the difference.
Column 8 = Column 2 + Column 4 – Column 5 + Column 7
Check formula: Column 2 of the reporting period = Column 8 of the previous reporting period
Above is Siglaw’s foreign loan registration report form and instructions for preparing a foreign loan registration report. If you have any questions related to the issue of registration and use of foreign loans, please contact Siglaw law firm to receive accurate, reputable, effective and professional answers and advice.
Phone: (+84) 961 366 238
Email:
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