The DECISION to enact the Statute of Government guarantees for foreign loans of credit organizations and businesses _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ the PRIME MINISTER pursuant to the law on Government Organization, 30 September 1992;
Pursuant to Decree No. 89/1998/ND-CP dated 11 November 1998 the Government promulgated the regulations of borrowing and repayment of foreign countries;
According to the recommendation of the Minister of finance and the Governor of the State Bank of Vietnam, the decision: article 1. Attached to this decision of the Government's guarantee regulations for foreign loans of credit organizations and enterprises.
Article 2. This decision takes effect 15 days from the date of signing. All previous provisions contrary to the regulations attached to this decision are hereby repealed.
Article 3. The Minister of finance, the Governor of the State Bank of Vietnam, has the responsibility of presiding, in collaboration with the Secretary, the Chairman of the Government Office, the Minister of planning and investment, the Minister of Justice and the heads of the relevant agencies to implement and guide, check out the enforcement regulations of the Government's guarantee for foreign loans of enterprises and credit institutions attached to this decision.
Article 4. The Ministers, heads of ministerial agencies, heads of government agencies, the Chairman of people's Committee of the central cities, is responsible for the implementation of this decision.
 
REGULATION of GOVERNMENT GUARANTEES for FOREIGN LOANS of CREDIT ORGANIZATIONS and ENTERPRISES (attached to decision No. 233/1999/QD-TTg dated 20 December 1999 from the Prime Minister's) chapter I GENERAL PROVISIONS article 1. In these rules the following terms are understood as follows: guarantor is the Government of Vietnam through the guarantee agency is (1) the Ministry of finance and the review of the level of guarantee for foreign loans of enterprises; or (2) the State Bank of Vietnam to consider and grant guarantee for foreign loans of credit organizations.
The guarantee is business or credit institutions make foreign lenders (Who lend) guarantee by the Government. The guarantee covers both the assignee (s), the person receiving the transfer, like the borrower's legal position be guarantor accepted.
The recipient of the guarantee is the person who has ownership of a part or the whole of the loan guarantee. The recipient of the guarantee is the lender and the assignee (s), Who received the transfer, the person that the lender's legal position and is meant to be the lenders in the loan contract.
The assignee of The guarantee or the guarantee is the recipient of the recognition of the whole or part of the rights and the obligations of The guarantee or the guarantee recipients (including ownership) is that the rights and obligations of the assignor.
The recipient of the transfer of The guarantee or the guarantee is the recipient of the recognition of the whole or part of the rights and the obligations of The guarantee or The guarantee (except ownership) is the right and obligation in the transfer.
The world of The guarantee or the guarantee of the recipient is the recipient of a part or the whole of the property along with the obligation of The guarantee or The guarantee.
Payment obligations is the accounts payable consists of the original debt, debt interest rates according to the contract, the interest rate is slow to pay, the fees and costs, compensation for losses (if any) as defined in the loan contract and conform to specific letters of guarantee.
The interest margin is an interest rate component and is the difference between the interest rate and floating interest rates in the interbank market.
The Government's guarantee for foreign business loans or credit institutions (hereinafter referred to as the "guarantee of the Government") is committed to the guarantor for the foreign lenders to ensure the implementation of the payment obligations have been committed in the borrower's loan contract to the lender (s) when due; in case the borrower does not make full and punctual payment obligations have been committed in the loan contract, the surety shall make the payment obligation that instead of the borrower pursuant to the letter of guarantee, and the borrower is obliged to reimburse the guarantor that guarantor has paid instead along with interest rates and all the more the actual charges related to the funds have to pay instead.
Article 2. The guarantee of the Government is to guarantee the highest legitimacy in Vietnam, a Government guarantee commitment is made in the form of letters of guarantee.
The Government provided only guarantee, non-renewable guarantee.
Article 3. The guarantee of the Government not require the guarantee is the State enterprise or State credit institutions have to mortgage the property. In other cases the guarantee agency delivered the Prime Minister's decision.
Article 4. All other matters related to the guarantee of the Government with foreign loans of credit organizations and business not stated in this regulation made under the provisions of Decree No. 90/1998/ND-CP dated 11 November 1998 the Government promulgated the regulations of borrowing and repayment of foreign countries.
Chapter II the OBJECT, SCOPE and CONDITIONS CONSIDERING the LEVEL of GOVERNMENT GUARANTEE article 5. The object was the Government considering the level of guarantee foreign loans including: 1. State enterprise or State credit institutions are Government allow direct foreign loans under the loan, paid self method to implement the investment project development, joint ventures with foreign capital contribution , or expand credit operations.
2. special objects other than the above mentioned objects because the Prime Minister decides according to the actual requirements and the Agency's recommendation to grant the guarantee.
Article 6. The Government issued guarantees for business loans overseas to perform: 1. The projects of major importance in the economic development plan of the country, mainly the project of infrastructure construction have payback.
2. The project to enter the high-tech equipment or the export of production projects.
3. The projects using commercial loans go along with non-refundable aid loan or official development assistance (ODA) of foreign countries to make up funding in the form of a mixed credit.
Article 7. Credit institutions are the Government consider granting the guarantee of the Government's credit institutions in foreign loans to make the credit or additional investment capital credit in all areas have the ability to withdraw funds.
Article 8. The Agency granted bail only consider the level of Government guarantees for projects and objects are defined in articles 5, 6 and 7 of this regulation and are full of the following conditions: 1. for business: business investment projects must meet the following requirements : a) Is viable projects are approved by the competent authorities or investment decision under the current rules, which stated loan and repayment plans repayment guarantees as to the term, and in an review of Government foreign loan guarantee to perform.
b) Must have written approval of the authority with regard to the results of bidding for the project and the draft commercial contracts (contract consultant, equipment supply contracts, construction contracts, ...) according to the current rules.
Commercial contracts, loan contracts and other documents of the project must be consistent with each other about relevant conditions.
For credit institutions: the loan must be approved by the Prime guarantee according to the order specified in point (b) article 14 paragraph 1 of this regulation.

2. an value of the original loan guarantee not less than an amount equivalent to 10 million United States dollars, unless otherwise stated projects in paragraph 3 article 6 of this regulation. The lender must be financial institutions, international credit, the Government, foreign commercial banks, institutions or major economic group abroad.
3. the loan contract are the conditions below: a) has a minimum loan duration from 5 years and over (not including grace period);
b) loan Type must be currency freely convertible;
c) interest rate, interest margin, fees and costs match the current conditions on the international market, domestic and particularity of the project;
d) content of the clause in the loan contract in accordance with the law of Vietnam and international practices;
DD) Is the guarantee agency to approve and process the Prime Minister for approval.
4. the text of the lender requested Vietnam Government guarantee.
5. enterprises and credit institutions apply the guarantee level are active production business in normal state, not in a State of protracted losses, no past due debt was not paid.
6. The required level of guarantee does not exceed the guarantee regulations for business or credit institutions.
Article 9. Limits of guarantee the guarantee limit for each business, credit institutions are stipulated in article 18 of Decree No. 90/1998/ND-CP dated 11 November 1998 the Government promulgated the regulations of borrowing and repayment of foreign countries.
Chapter III AUTHORITIES and MANAGEMENT of GOVERNMENT GUARANTEE article 10. The guarantee level agency of the Government is the body specified in article 17 of Decree 89/1998/ND-CP dated 11 November 1998 the Government promulgated the regulations of borrowing and repayment of foreign countries.
Article 11. The liability of the guarantee agency and related agencies.
1. The Ministry of finance is the Agency on behalf of the Government to review the level of guarantee for foreign loans business following a decision of the Prime Minister, performing State management functions for all the Government's guarantee for foreign loans as the Government's foreign loans , including instructions to foreign loans businesses is the Government guarantee the guarantee fee submission.
2. State Bank of Vietnam is the Agency on behalf of the Government to consider granting bail for credit institutions borrowing abroad by decision of the Prime Minister; have a responsibility to provide adequate, timely information about the terms of the guarantee by the State Bank of Vietnam made for the Ministry of finance to the General management of the granting of guarantees by the Government, including the Guide to credit institutions in foreign loans are Government-guaranteed free lodging guarantee.
The Ministry of finance and the State Bank of Vietnam consistent regulation of specific coordination in the provision of Government guarantee, Exchange information and handle the problems arising in the course of the Government's guarantee, monitor, monitor the implementation of the loan and have support when necessary for business and credit guarantee institutions , there are quarterly reports with prime loans are Government-guaranteed debt was not paid when due.
With regard to the guarantee of the Government that the State Bank of Vietnam has granted prior to the promulgation of Decree No. 90/1998/ND-CP dated 11 November 1998 from the Government, the State Bank of Vietnam continues to manage the Agency's functional level of guarantee and responsibility transferred to the Finance Ministry a copy of the entire record of this guarantee to the General management. The whole of the guarantee fees obtained from the effective date of this regulation, the State Bank of Vietnam moved into the "accumulating Fund the repayments" follow the instructions of the Ministry of finance.
3. The Ministry of Justice has a responsibility to consider the legal issues in the text of the agreement will be signed with the lenders and granted legal opinions for the guarantee and the guarantee.
Article 12. The guarantee agency can be "tender Side" invited to consider the financial package for the projects with foreign loans require a guarantee by the Government.
Chapter IV the ORDER and PROCEDURES of GOVERNMENT GUARANTEE article 13. The message content of the Government's guarantee will be agreed upon between the level of guarantee and the guarantee, including the following details: a) the guarantor and the guarantee agency;
b) recipient of the guarantee;
ưc) Who are guarantors;
d) references the relevant commercial contracts, contract loans;
DD) the required level of guarantees, loan type;
e) commitment of the guarantor for the recipient of the guarantee on the obligation of The guarantee and the guarantee;
g) rights and responsibilities of the recipient of the guarantee;
h) validity and revocation of letters of guarantee;
I) dominant and Law bodies, the location, the language used in the trial when the dispute arises;
k) location, day, month and year release signed letters of guarantee.
Article 14. The sequence and procedures consider the level of guarantee ư1. Approval of the Government's guarantee: a) for business, approved the Government's guarantee set forth in paragraph 1, article 8 of this regulation.
b) for credit institutions: at the suggestion of the credit institution, the State Bank of Vietnam has the prime responsibility to recommend approval of the level of Government guarantee for the loan, the lender which stated, the value of the loan should be guaranteed, the conditions of the loan and the repayment of the loan by the given the Agency's opinion, the level of guarantee for the loan, accompanied by the text of The requested loan guarantee by the Government.
2. The records suggest the level of guarantee: the base investment decisions (for business) or the approval of the Prime Minister (for credit institutions), the borrower is responsible for providing records to the Agency granting the guarantee, include: a) the draft loan contract;
b) draft letters of guarantee;
c) related commercial contracts;
d) feasibility study report of the project has used foreign loans have been approved or authorized investment decisions;
DD) the borrower's financial statements have been audited or are capital management agency and the State property in enterprises confirm in 2 years (for business or credit institutions are active).
e) text of the lender to ask for guarantees from the Government.
3. Review the proposal to grant bail: When receiving records suggest the level of guarantee, the guarantee agency is responsible for the review of records in less than 5 working days, and when necessary can request business credit institutions provide additional or clarifying the relevant documents. If the profile has full guarantee, the guarantee agency to notify the borrower continue the work prescribed in clause 4, 5 and 6 of this Article.
ư4. The loan contract negotiations and related texts: a) after the announcement of the guarantee agency borrower, conducted negotiations with lenders about the specific content of the loan contract with the participation of the guarantee agency and other relevant bodies.
b) authorities guarantee talks with lenders about the content of the letter of guarantee.
ưc) Ministry of Justice negotiations with lenders about the content of the legal opinion.
5. Approval of the loan contract, letter of guarantee: within 30 days of the end of negotiations on the loan contract and the relevant text: a) as proposed by the borrower or the State agency level on the borrower (if any), the authorities have the responsibility to guarantee the Prime contract content approval and content of messages guarantees.
b) approved by the Prime Minister at the same time the loan contract content and the content of the Letter of guarantee.
ư6. Granted Letters of guarantee and legal opinions. After writing to the Prime Minister's approval of the content of the contract and the loan guarantee Letter content:

a) borrower signed the loan contract with official lenders, and sign a written commitment according to the form prescribed in annex 1 attached to this regulation of the State administration level on the borrower (if any) and transferred to the guarantee agency.
b) underwriting agency Letters of guarantee into 3 main versions, each version is stored by the lender, the borrower and the guarantor Agency. A because the lenders are moving through The loan.
c) registration procedures borrower loan guarantee under the provisions of the State Bank of Vietnam.
d) Ministry of Justice issued a legal opinion into 4 main version in case the lender requires, each is stored by the lender, guarantor, guarantor and the Ministry of Justice. A because the lenders are moving through The loan.
Article 15. In the case of guarantee commercial loans go with non-refundable aid or ODA loans to make up for funding in the form of a mixed credit, order bail review procedures are performed under the provisions of clause 2, 3, 4 and 6 of article 14 of this regulation.
Article 16. The Government's bail revocation.
Guarantor will revoke the Letters of guarantee when the obligation of payment of guarantee has been made in full, or when the lender unilaterally cancel the contract, or the guarantee was replaced by another guarantee measures. The guarantee agency is responsible for timely notifications to the parties concerned the recovery.
In case of need to recover the guarantee differs from the above mentioned case, the guarantee agency to consult the Department of Justice and the Prime Minister to review the decision under the provisions of the applicable law and international practices.
Article 17. In case the guarantor must pay instead of The guarantee, the guarantee level agency make pay instead of the person is guaranteed in accordance with the regulation, use and management of the Fund accumulated foreign debt is attached to decision No 72/1999/QD-BTC dated 9 July 1999 of the Minister of finance. Funds recovered from The guarantee according to the provisions of paragraph 1 of article 20 of this regulation be granted bail agencies moved into the "accumulating foreign debt service Fund" and are a source of accounting currency of the Fund.
Chapter V OBLIGATION of the GUARANTEE Article 18. The guarantee obligations: 1. To provide for the Agency to grant the guarantee the following information: a) report in the form prescribed in Appendix 2 attached to this regulation, including the content: the date and value of each exit under the loan guarantee; the progress of capital withdrawal, periodic repayment of loans under the guarantee;
b) annual report on the implementation of the project;
c) financial reports are audited or certified by the State Management Agency superiors Who are guarantors (if any), comprising the balance sheet, results of operations, cash flow, and presentation of financial statements;
d) special situations can affect the implementation of the project and the ability to perform the payment obligations under the loan contract.
2. create the conditions for the guarantee agency to check the implementation of the project when needed.
3. Submit the guarantee fee in full and timely according to the provisions of this regulation.
4. Implement strictly and fully the obligations already committed with the authority to grant bail in the written commitment according to the form prescribed in annex 1 attached to this regulation.
Article 19. The guarantee fee and fee application, consider the level of guarantee 1. The guarantee must be submitted to the Agency granting of guarantee the guarantee fee, calculated on the balance of the loan guarantee, and are specified as follows: your fancy) 0.5% per year calculated on the balance of the loan guaranteed by the Government to implement the investment project for the construction of infrastructure have payback.
b) 1.0% per year calculated on the balance of the loan guaranteed by the Government to implement the projects beyond the scope of the projects mentioned in (a) above.
c) does not charge a fee for the guarantee of the project referred to in paragraph 3 to article 5 of this regulation.
When the need to adjust the fee guarantee, the Ministry of Finance jointly chaired the State Bank of Vietnam the Prime Minister approved and announced at least 90 days prior to the implementation of the new guarantee fee. In any case, the guarantee fees should not exceed 1.5% per year calculated on the balance of the loan guaranteed by the Government.
2. Submit the guarantee fee.
ưPhí guarantee in foreign currency loan signing, and be filed at the same time with the payment of interest on loans in foreign currency loan signing, or in foreign currency conversions, or in Vietnam according to the exchange rate by the State Bank of Vietnam official publication or notification to the Finance Ministry at the time. The Agency issued The instructions guarantee guarantee guarantee fee directly into the "accumulating Fund repayment" as defined by the Ministry of finance.
3. grant application review fee guarantee.
The guarantee must be submitted to the authorities guarantee a fixed fee for the application for review of the level of guarantee to compensate the costs incurred in the process of review and granting of guarantees. Specific fees and fee deadline due to the Ministry of finance regulations.
Article 20. Other obligations 1. In case the guarantor must pay instead of The guarantee, the guarantee agency has the right to make patent law with regard to The guarantee, forcing People to be guaranteed to get the debt to guarantor and any obligation of reimbursement for a certain period of time for which the guarantor guarantor has paid rather , plus all actual costs incurred relating to the charged higher interest rates change in the following level 2: a) the interest rate specified in the loan contract, or, b) LIBOR interest rate/6 months for money lent under the loan contract plus 1% per year calculated from the date of The guarantee of payment instead of The guarantee to The guarantor recovered account that money.
2. in the case of the guarantee do not pay the debt because of the subjective cause, such as inefficient use of capital, to waste, losses which had bad influence to the prestige of the Government and damage to the State budget, the guarantee will be dealt with according to the provisions of the law.
Article 21. The assignee, Who received the transfer, The world of The guarantee obligation for the Agency to grant the guarantee corresponds to the scope of the assignee, or delivered, or that the taste from The guarantee.
Chapter VI HANDLING of breach of article 22. Organizations and individuals violating the provisions of this regulation depending on the nature and extent of the violation will be handled administratively or be blind for criminal liability, compensation under the current rules.