Decree No. 219/2013/ND-CP dated December 26, 2013 of the Government on management of enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee

THE GOVERNMENT

Decree No. 219/2013/ND-CP of December 26, 2013 on management of enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee

Pursuant to the December 25, 2001 Law on Organization of the Government;

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

Pursuant to the June 16, 2010 Law on Credit Institutions;

Pursuant to the June 17, 2009 Law on Public Debt Management;

Pursuant to the November 29, 2005 Law on Enterprises;

Pursuant to the November 20, 2012 Law on Cooperatives;

Pursuant to December 13, 2005 Ordinance No. 28/2005/PL-UBTVQH11 on Foreign Exchange;

Pursuant to March 18, 2013 Ordinance No. 06/2013/PL-UBTVQH13 Amending and Supplementing a Number of Articles of the Ordinance on Foreign Exchange;

At the proposal of the Governor of the State Bank of Vietnam,

The Government promulgates the Decree on management of enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree prescribes enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee and the responsibilities of related agencies in managing such activities.

2. Enterprises regulated by this Decree (below referred to as borrowers) include:

a/ Enterprises established and operating under the Law on Enterprises;

b/ Credit institutions and foreign bank branches established and operating under the Law on Credit Institutions;

c/ Cooperatives and unions of cooperatives established and operating under the Law on Cooperatives.

Article 2. Subjects of application

1. State management agencies managing enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee as prescribed in this Decree.

2. Borrowers that take foreign loans without government guarantee.

3. Organizations and individuals involved in enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee.

Article 3. Interpretation of terms

In this Decree, the terms and phrases below are construed as follows:

1. Borrowing of a foreign loan means a borrower receiving a credit amount from a non-resident through signing and implementing a foreign loan agreement in the form of loan contract, contract on goods purchase and sale on deferred payment, loan provision entrustment contract, financial leasing contract, or issuance by the borrower of debt instruments.

2. Borrowing of a foreign loan without government guarantee (below referred to as borrowing a foreign loan by the mode of self-borrowing and self-payment) means a borrower taking a foreign loan by the mode of self-borrowing and self-responsibility for payment to the foreign lender.

3. Foreign debt by the mode of self-borrowing and self-payment means payable amounts, including the principal and interest arising from the borrowing of a foreign loan by a borrower by the mode of self-borrowing and self-payment in accordance with Vietnamese law.

4. Limit of foreign loans by the mode of self-borrowing and self-payment approved annually by the Prime Minister means the ceiling level of the total net loan amount (the actually received loan amount minus the principal payments) of medium- and long-term foreign loans by the mode of self-borrowing and self-payment in a year.

5. Licensed credit institutions include credit institutions and foreign bank branches in Vietnam that are licensed to deal in foreign exchange and provide foreign exchange services in accordance with law.