Circular 18/2011/tt-Nhnn: Guide To Foreign Exchange Management For The Long Term, Foreign Loans Of The Commercial Banks Are State-Owned Enterprises

Original Language Title: Thông tư 18/2011/TT-NHNN: Hướng dẫn về quản lý ngoại hối đối với việc vay trung, dài hạn nước ngoài của các ngân hàng thương mại là doanh nghiệp nhà nước

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
Circulars on Foreign Exchange Management for the medium and long-term foreign loans of the commercial banks are State enterprises _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the law the State Bank of Vietnam the number 46/2010/QH12 16 June 2010;
Pursuant to the law on credit institutions the number 47/2010/QH12 16 June 2010;
Foreign Exchange Ordinance base of 28/2005/PL-UBTVQH11 on December 13, 2005;
Pursuant to Decree No. 133/2005/ND-CP dated 11 November 2005 the Government enacted regulations of borrowing and repayment of foreign countries;
Pursuant to Decree No. 160/2006/ND-CP on December 28, 2006 detailing the Government's enforcement of the Ordinance on foreign exchange;
Pursuant to Decree No. 96/2008/ND-CP on August 26, 2008 Government's functions, tasks, powers and structure of the State Bank of Vietnam;
The base directive 1568/CT-TTg dated August 19, 2010 by the Prime Minister on the implementation of the conclusions of 78-KL/TW on July 26, 2010 of the Politburo;
The State Bank of Vietnam (hereinafter the Bank) Forex management guidelines for the implementation of medium and long-term foreign loans of the commercial banking business of the State is as follows: chapter I GENERAL PROVISIONS article 1. Scope and objects 1. This circular regulates the principles, processes and procedures review and implementation of medium-and long-term loans to foreign Governments is not the guarantee of the commercial banks are State-owned enterprises.
2. Foreign Loans of commercial banks are State-owned enterprises are government guarantees made according to the current rules of the guarantee management and the Government.
3. application of the circular object is the commercial banks are State enterprises, organizations and individuals who are related to the medium and long-term, foreign loans are not government guarantees of commercial banks are State-owned enterprises.
Article 2. Explanation of terms in this circular, the terms below are interpreted as follows: 1. the commercial bank is the State Enterprise (hereinafter referred to as the "State Bank") is a commercial bank established and functioning according to the law on credit institutions, because the State owns over 50% of the Charter capital.
2. foreign loan agreement is the contract, loan agreement, long-term overseas Chinese writing, the tools of the debt effect of withdrawal of capital and create the repayment obligation, which regulates the terms and conditions of foreign loans.
3. change of agreement is agreed upon in writing between the parties involved in the transaction a foreign loan of additional content, modify foreign loan agreements signed.
4. foreign loans, China's State commercial banks (hereinafter referred to as "foreign loans") are loans with loan duration on one (1) year from the credit organization, foreign financial institutions are non-residents or foreign loans through the international bonds on the international capital markets commercial banking home the water.
5. The rate of guarantee safety in the operation of credit institutions (hereinafter referred to as "the security rate") is the rate determined according to the current rules of the State Bank on the ratio of safety in the operation of the credit institution.
6. loan turnover is the norm of the maximum drawing of foreign loan provisions in the loan agreement or the project of international bonds.
Article 3. Implementation guidelines, long-term loans of the State commercial bank 1. The State commercial bank signed the loan agreement only abroad after the opinion approved by the State Bank as defined in chapter II of this circular.
2. After the Bank approved in writing, the State Bank for foreign loan agreements signed and implemented the registration of foreign loans as defined in chapter III of this circular.
3. the State commercial bank is obliged to use the correct loan purpose and effect, repay the debt (principal and interest) under the loan agreement commitments abroad, bear all risk and responsibility before the law in the process of implementing the loan and pay foreign debt.
4. in case of international bonds, the State Bank for implementation of the provisions of chapter II of this circular with regard to the proposed State Bank approved the project of the international bonds. The registration confirm registration account, limit the release of international bonds and the other related content made under the guidance of the State Bank foreign exchange manager with regard to the issuance of international bonds.
5. The withdrawal of capital, repayment of principal and interest of foreign loans are only made after foreign loans State Bank to confirm registration. State commercial bank just made the charges related to foreign loans after the opinion approved by the State Bank of the foreign loan agreements.
Chapter II PROCEDURES for APPROVED FOREIGN LOAN article 4. Records suggest foreign loan approvals 1. Before signing the loan agreement or proposed release limit confirmation of international bonds, the State commercial bank sent directly or by post to the State Bank (Foreign Exchange Management) 1 record suggested the State Bank approved loans of or approved the project of the international bonds.
2. The records suggest foreign loan approval include: a) the text of the proposal State Bank allows foreign loan agreements signed;
b) copy foreign and Vietnamese translations of the last draft agreement on foreign loans;
c) the last draft of the agreement on the loan guarantee (if any);
d) approving authority for foreign loan schemes under the provisions of the Charter of the State commercial bank;
DD) report on loans, loan, expected sources of capital and repayment plans, preventive approach and interest rate risk;
e) report on the State of compliance with the security rate of State commercial bank at the time closest to the time suggested the Bank approved foreign loans; the impact of foreign loans and the use of loans to secure rate of State commercial bank.
3. the suggested profile approved the project of the international bonds include: a) the text of the proposal State Bank approved the project of the international bonds;
b) project on international bonds;
c) approved by the authority for the project of international bonds issued under the provisions of the Charter of the State commercial bank;
d) report on the compliance with the current regulations on the safety assurance rate of State commercial bank at the time closest to the time suggested the Bank approved the project of the international bonds; the impact of the release clause and the use of capital from domestic bonds to secure rate of State commercial bank.
Article 5. The basis for the State Bank to consider, approve foreign loans or bonds scheme internationally 1. Compliance with the provisions of the current law on the proportion of the safe guarantee of State commercial bank.
The State's only commercial bank loans, long-term overseas Chinese when meet the provisions of current legislation about the male l guarantee safety, except in two situations: a) Has approved the text of the Prime Minister or the State Bank of the State Bank does not meet one or more of the security rate before make loans;
b) loans are calculated in the secondary capital of State commercial bank and the implementation of loans help State commercial banks meet the regulations on the proportion of the safe guarantee.
2. loan or account value is located in the release of the loan limit, the country's foreign trade was approved by the Prime Minister.
3. The content of foreign loan agreements or schemes of international bonds not contrary to the rules of the law of Vietnam.
4. Meet other requirements under the applicable provisions of the law on Foreign Exchange Management; loans, repayment of foreign countries; and the provisions of other relevant laws.
Article 6. Time to review the records within a period of fifteen (15) working days from receipt of complete and valid dossier, the State Bank of the opinion in writing regarding the approval or disapproval of foreign loans or project of the international bonds of the State commercial bank. The case of disapproval, the State Bank have text stating the reason.
Chapter III REGISTRATION PROCEDURES and LOAN REGISTER FOREIGN LOANS CHANGE article 7. Processes, procedures, records of foreign loan registration 1. After being approved by the State Bank, the State Bank for foreign loan agreements signed and the relevant legal texts. Within thirty (30) days from the date of signing the loan agreement and before the exit, rnại State Bank sent directly or sent by post to the 1st State Bank registered record foreign loans.
2. the register records loans include: a) foreign loan application (form in annex 1).
b) copy foreign and Vietnamese translations of foreign loan agreements and other legal agreements (if any) was signed, accompanied by written commitment of competent representative under the law of the State commercial bank about the integrity of the signed agreement and a draft was last sent State Bank.
Article 8. Time confirmed foreign loan registration 1. State Bank to confirm registration of foreign loans for commercial banks to the State within a period of five (5) working days from the date of the application with the following cases: a) The signed agreement to the official suit of the last draft had sent the State Bank as defined in article 4 of this circular.

b) signed agreements with other content with the final draft sent the State Bank as defined in article 4 of this circular, song contents the agreement official signing still guarantee compliance with the provisions of the law of Vietnam. In this case, the State commercial bank should clearly report in writing to the relevant content to send State Bank.
2. where the registered loan profile does not meet the provisions of Paragraph 1 of this article, within a period of 5 working days from the date of the record, the State Bank reported to the State commercial bank supplement, edit registry profile of foreign loans.
Article 9. Subscribe to change foreign loans 1. The case of the agreement change there is no changing content contrary to current legislation and keep the loan turnover or reducing the overall volume of loans (including cases of canceling loans, State commercial banks signed the agreement to change and make the change loan registration under the provisions of the law on the management of loans foreign debt, of the business.
2. in case of the agreement change increases the overall volume of loans of the State commercial bank, perform the procedure to approve the increase in the overall volume of loans as new foreign loans made under the provisions of this circular. After the Bank approved in writing, the State commercial bank signed an agreement to change and make the change loan registration under the provisions of the law on the management of loans, repayment of foreign business.
3. in case of change of agreement with content changes are specified in the text of the current law, only State commercial bank signed an agreement to change and make the change registration after the loan was approved by the State Bank and the instructions in writing.
Chapter IV Report 10. Periodic report 1. Monthly, annual, State commercial banks have a responsibility to report the State Bank branch in the city, where there State Commercial Bank headquarters, the stars sent the State Bank (Foreign Exchange Management) implementation of foreign loans under the form in annex 2 of this circular.
2. the report period: a) for this month: report at the latest on the 10th of the next month.
b) for reporting year: at the latest on 31 January of the following year.
Article 11. Irregular reports state commercial bank made irregular reports as required by the State Bank.
Chapter V IMPLEMENTATION article 12. The Authority decided to State Bank Governor decides whether to approve or not approve for the long term, foreign loans or project of the international bonds of the State commercial bank.
Article 13. The functions, tasks and mechanisms of coordination between the units of the State Bank 1. Foreign Exchange Management: a) presiding, in cooperation with the relevant units in the Bank handles the issues related to the long-term, China loans of foreign commercial bank State under provisions of current legislation and Government direction.
b) Do clue opinions related units in the State Bank, the general opinion of the unit, the Governor of the State Bank decided on comments approved foreign loans or project of the international bonds of the State commercial bank.
c) reported the opinion of the Bank approved or not approved for foreign loans or bonds scheme of international commercial banks.
d) make registration, confirmation of registration change of foreign loans of the State commercial bank under the provisions of this circular.
DD) data periodically (quarterly, year) report of State Bank Governor about the situation of foreign loans of the State commercial bank.
2. Inspection bodies, banking supervision: a) in collaboration with the Foreign Exchange Management in the study, taking comments on the State Bank for foreign borrowers. The content of comments involved include: the situation in compliance with the regulations on the safety assurance rate of State commercial banks are foreign loans; reviews the impact of foreign loans and the use of loans to secure rate of State commercial bank; recommendations agree or disagree (reason) for foreign loans or project of the international bonds of the State commercial bank.
b) presiding, in cooperation with the relevant units to conduct the inspection, checking, monitoring, works borrowing, foreign debt of the State commercial bank; treats breaches of State commercial banks violate rules when making foreign loans.
c) involved to handle other issues relevant to the proposed foreign loans and foreign loans of the State commercial bank under the direction of the Governor of the State Bank.
3. monetary policy: a) in collaboration with the Foreign Exchange Management in the study, taking comments on the State Bank for foreign borrowers. Join the content of comments involved include: interest rate, loan purpose, source of foreign currency to repay the principal and interest, the influence of the monetary balance on the system arising from foreign loan sources of commercial bank State (if any), the credit structure and financing structure of State commercial bank ...; recommendations agree or disagree (reason) for foreign loans or project of the international bonds of the State commercial bank.
b.) engagement to handle other issues relevant to the proposed foreign loans and foreign loans of the State commercial bank under the direction of the Governor of the State Bank.
4. Service legislation: a) in collaboration with the Foreign Exchange Management in the study, have opinions on the legal aspects involved in the profile of foreign loans of the State commercial bank; issues recommendations contrary to the law of the relevant foreign loans in Vietnam or the project of international bonds issued by State commercial bank.
b.) engagement to handle other issues relevant to the proposed foreign loans and foreign loans of the State commercial bank under the direction of the Governor of the State Bank.
5. Service credits: a) in collaboration with the Foreign Exchange Management in the study, taking comments on the issues of guarantees and other forms of guarantee for foreign loans of the State commercial bank; recommendations agree or disagree (reason) for foreign loans or project of the international bonds of the State commercial bank.
b.) engagement to handle other issues relevant to the proposed foreign loans and foreign loans of the State commercial bank under the direction of the Governor of the State Bank.
Chapter VI article 14 ENFORCEMENT TERMS. Effect 1. This circular is effective from January 15, 2011.
2. medium-and long-term loans of the State commercial bank was confirmed registration, registration of change before this circular effect, continued to follow the text confirm registration, registration of changes has been the State Bank. Where there is agreement to change after the date of this circular effect, State commercial banks to comply with the provisions of this circular.
3. foreign loans, China's State commercial banks signed loan agreements before this circular effect but not yet confirmed registry, making foreign loans registration made under the guidance of the State Bank for each specific case.
Article 15. Enforcement of terms of Office, the Chief Inspector, bank supervision, heads of units of the State Bank, Director of the State Bank branch in the central cities, Chairman of the Board, General Director (Manager) of the State commercial banks within their functions is responsible for organizing the implementation of this circular.