| STATE BANK OF VIETNAM ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom Happiness --------- |
| No. 897/CV-NHNN7 Re: Registration on foreign borrowing and repayment by enterprises | Hanoi, September 28, 1998 |
| To: | - State Bank branches in provinces and cities - State owned commercial banks - Joint-stock commercial banks - Joint venture banks - Foreign bank branches |
On 30 August, 1993, the Government issued the Regulation on the management of foreign borrowing and repayment in conjunction with the Decree No. 58/CP and the State Bank has issued the Circular No. 07/TT-NH7 dated 26 March, 1994 guiding the management of foreign borrowing and repayment by enterprises in accordance with the above-mentioned regulation.
On 14 December, 1996, the State Bank issued the Notice No. 459/TB-VP on the registration of foreign borrowing and repayment by enterprises.
However, some enterprises (including also enterprises with foreign invested capital), concluded and implemented foreign borrowing agreements before the registration with the State Bank without complying with the provisions of the Government.
In order to strictly comply with Government provisions, the State Bank hereby requests that enterprises of any economic sector (including also enterprises with foreign invested capital) with borrowing from foreign countries to complete registration procedures with the State Bank (the Foreign Exchange Control Department) for the approval of the borrowing before they enter officially into the foreign borrowing agreement (except for the borrowing of a term less than 1 year under a deferred L/C and the borrowing by foreign parties to a business cooperation contract).
Commercial banks shall only be permitted to transfer funds of enterprises abroad for repayments (principal, interest and fees) if the borrowings have been registered with the State Bank and the repayment is made in line with the repayment schedule registered.
Enterprises which have not complied with the provisions of the Regulation of the Government on the management of foreign borrowing and repayment shall take full responsibility and the State Bank shall not consider approval of any transfer for repayment of (principal, interest, fee) the foreign borrowings.
The State Bank gives notice to commercial banks for their implementation. For explanation, please contact the State Bank (the Foreign Exchange Control Department).
| | FOR THE GOVERNOR OF THE STATE BANK OF VIETNAM DEPUTY GOVERNOR Duong Thu Huong |
