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Decree 58-Cp: Regarding The Promulgation Of Regulations Of Borrowing And Repayment Of Foreign Countries

Original Language Title: Nghị định 58-CP: Về việc ban hành Quy chế quản lý vay và trả nợ nước ngoài

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Decree on issuing regulations of borrowing and repayment of foreign countries.
The GOVERNMENT pursuant to the law on Government Organization, 30 September 1992;
To manage the borrowing and repayment of foreign countries;
According to the recommendation of the Minister of finance, Minister, Chairman of the State Planning Commission, the Governor of the State Bank; 
DECREE: article 1.-attached to this decree a regulation on management of the loan and to pay foreign debt.
Article 2.-the Decree has effect from the date of signing.
The Minister of finance, Minister, Chairman of the State Planning Commission, the State Bank Governor responsible for organizing guide regulations attached to this Decree.
Article 3.-Ministers, heads of ministerial agencies, government agencies and the Chairman of the provincial people's Committee, central cities are responsible for the implementation of this Decree.
 
REGULATIONS of BORROWING and REPAYMENT of FOREIGN COUNTRIES (attached to Decree 58-CP dated 30 August 1993 from the Government) chapter I GENERAL PROVISIONS article 1.-In this regulation, the following terms are understood as follows: Foreign Loans are loans of short, medium and long term (with interest or no interest) , the terms of the guarantee and loan forms (such as the agreement to postpone new loans or debt to pay old) with foreign creditors.
Foreign government loans are the loans by government loans and national service commitment with foreign government loans or authorize the loan business, the Ministry of Finance (or Bank) bail.
Foreign business loans are the loans by businesses of all economic sectors are established and operate in accordance with the law of Vietnam's current loans and commitments made with foreign obligations.
Article 2.-the Foreign Loans under this Regulation include: foreign Government Loans.
Foreign loans of enterprises in the form of auto loans, auto pay (including the loans back from the foreign debt of the Government or of the Bank).
Loans of enterprises foreign investment law on foreign investment.
Article 3.-the Government loan management and pay foreign debt according to the annual plan and 5 years according to the assignment for the following: 1. The Ministry of finance is responsible for general planning of the loan limit and pay the foreign debt of the Government.
2. State Bank of India is responsible for general planning of the loan limit and repayment of foreign enterprises.
3. both the plan after consulting the Council of advice about borrowing and repayment of foreign countries, the Ministry of finance general government decision.
Article 4.-Council advice on borrowing and repayment of foreign countries (hereinafter referred to as society of consulting local debt) by the Minister of finance as the Chairman and the members are the leaders of the organs of the State Planning Commission, the State Bank, the Foreign Ministry, Ministry of Commerce, the State Committee for cooperation and investment , Government offices and some professionals knowledgeable in the field of loans and foreign debt.
Debt Advisory Council performs the functions of consulting help prime the loan policy and pay foreign debt, borrowing and planning long-term and annual repayment.
The provisions on the functions, duties and regulations of the specific work of the Advisory Council of the debt due to the Minister of finance the drafting process the Prime Minister signed the promulgation.
Article 5.-unity Government manage the borrowing and repayment of foreign enterprises according to the following rules: 1. Businesses of any economic sectors to foreign loans would also have to be responsible for the foreign debt under the condition that has been committed.
2. enterprises in the economic sectors can direct loans from abroad or foreign capital lending of the Government or of the Bank.
3. the loan needs to be sent to government agencies authorized to manage the borrowing and repayment of foreign countries as stated in article 3 of this regulation.
4. Enterprises are not automatically contact or agreement with the foreign countries with regard to the Government's foreign loans are in the process of negotiations.
 
CHAPTER II LOANS and REPAY the GOVERNMENT'S OVERSEAS article 6.-pursuant to the plan of the loan limit and the Government's foreign debt has been approved, the authorization by the Prime Minister for finance on behalf of the Government foreign loan agreements signed and make repayment according to the approved limit.
In case the Prime Minister for an authorization on behalf of other government agencies signed the loan agreement, pay foreign debt, the Agency the official agreement was signed only after the agreed with the Finance Ministry about the conditions of the loan, and after having signed with foreign countries to send the agreement to the Minister of Finance (the original) in slow time for not than 30 days from the date of signing.
Article 7.-The investment project of construction was done by foreign capital of the Government must be the State Planning Commission, the Ministry of finance and the relevant authorities review and evaluation according to the current rules on the evaluation modes of State projects before signing the agreement.
Article 8.-the entire loan and repay the Government's overseas are to be balanced and to write to the State budget.
Based on the nature, purpose and potential divestment of each loan, the management and use of loans are made according to the following method: 1. Loans for the projects of basic construction:

a) for infrastructure projects, social welfare and other projects are not likely to return, the Ministry of finance will allocate mode according to the funding of capital construction from the State budget.
b) for the project could return (including the investment projects for infrastructure), the Ministry of finance in cooperation with the State Bank selects the appropriate bank for delivery to the Bank that made the loan to businesses.
The Finance Ministry, the State Bank and bankers must agree on the terms and conditions of the loan back on principle this condition not be more preferential conditions for loans from abroad.
The Bank was chosen as the final decision making for business loans; responsible withdrawal of capital and repay to the State budget in time according to the time limit to be determined between the Finance Ministry and the Bank.
2. Loans in foreign currency borrowing or using the goods (trade credit): making loans in foreign currency and goods are defined as follows: foreign currency loans are of foreign countries, after the meet the payment needs of foreign Governments, the rest was sold to the Bank to collect the money into the State budget.
Part of the loan by the goods: the unit is the Ministry of finance and Ministry of Commerce chose to mandate enter the row, after the sale are paid into the State budget under current rules.
Foreign loan comes to be used according to the rules stated in point 1 of this article.
Article 9.-per withdrawal of capital and repay the unit is allocated or were borrowed back from the Government loans must report to the Ministry of finance and the State Bank not later than 30 days after the service of that arise.
Article 10.-the Ministry of finance is responsible for the layout of the annual State budget as approved plans to pay the debt to foreign countries when due (including the repayment by the goods and pay the debt with money).
 
CHAPTER III BORROWING and REPAYMENT of FOREIGN ENTERPRISES article 11.-the implementation of foreign loans under the loan, paid themselves method of the enterprise for the project construction to ensure the following conditions: 1. the technical-economic justification must be approved by the competent authority.
2. The conditions of the loan shall be the Ministry of finance and the State Bank approval.
Article 12.-the implementation of foreign loans under the loan, paid themselves method of enterprise for production and business activities must ensure the following conditions: 1. Be State Bank loan is confirmed in the plan of foreign loan limit.
2. production and business operations and Finance of enterprises are in the normal condition (no tax debts to the State budget, has no overdue debt with agencies, domestic and foreign units ...).
3. Must have the reviews, review of scheme and loan levels approved by the provincial people's Committee Chairman, central cities (for local businesses) and the Home Minister (for business).
4. Is the Bank agreed to guarantee, if the lender requires a guarantee.
Article 13.-businesses of the State economic component are foreign loans under the loan itself, the method.
The case of the foreign lender requires a guarantee of the Bank shall follow the regulations of the bank guarantee.
Article 14.-the heads of the State Administration supervisor of the State Enterprise responsible to the Prime Minister, the Governor of the State Bank on business of affiliated businesses that his proposal to allow foreign loans. Every year, the State Administration supervisor of the State Enterprise responsible for synthesizing and report to the State Bank Governor, the Finance Minister about the situation of the loan, the repayment of foreign enterprises directly.
Article 15.-The foreign loans of enterprises must be subject to the Bank's management and the State of the bank guarantee. Within 30 days from the date of signing the official, foreign loans businesses must provide a copy of the text signed with foreign Parties on bank loans for the State and for the bank guarantee.
Article 16.-The repayment of foreign loans and all enterprises must be done through the banking system.
 
CHAPTER IV GUARANTEE article 17.-in case the required foreign lender guarantee: If in the Government's loan, the Government authorizes the Ministry of finance or the Central Bank consider decided the guarantee.
If in the loans of the Bank, the business review and decided the guarantee under the guarantee of the Bank.
Article 18.-guarantee agency is the final decision on the loan business, please approach including the technical economic demonstration was the competent authority.
Article 19.-in the case of businesses are not likely to guarantee repayment of that debt was due, the guarantee agency is responsible for repayment instead of enterprises; at the same time, have the right to play in the commercial property business to offset the repayment account instead of under the provisions of the law.
For foreign loans without guarantee agency, the borrower and lender are solely responsible for all the risks.

Article 20.-the State Bank coordinated with the Finance Ministry drafted the Prime Minister signed the promulgation of regulations on foreign loan guarantee for the loan from the Government.
 
Chapter V INSPECTION, inspection and PROCESS article 21.-the Ministry of finance, the State Bank to conduct inspection, periodic inspection, loan repayments situation of all State enterprises, State enterprises by the bank guarantee. The unit test, the Ombudsman has the duty to provide full situation, metrics and documentation related to the loan and pay foreign debt for the inspection, the inspector said.
Article 22.-in case the guarantee agency or business violates a statute, depending on the level of violation, the head of the enterprise or the guarantee agency must be responsible for the material or arrested save for criminal liability in accordance with the law.
Article 23.-in this case by case review is not true of the State Management Agency supervisor of State enterprises have caused damage, economically, who signed option, depending on the extent of the damage have to be administrative or disciplinary prejudice criminal liability.
Article 24.-The business using foreign loans every year to report on the use of loans and repayments with the Ministry of Finance (if using government loans) or Bank (if using the loan under the loan, paid themselves method). Every year, the Minister of finance, the Governor of the State Bank reporting the use of loans by themselves the Prime management./.