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Decision 160/qd-Nh7: Issued Regulations On Coordination Between The Units In The Banking System In The Management Of Foreign Debt, Loans

Original Language Title: Quyết định 160/QĐ-NH7: Ban hành quy định về sự phối kết hợp giữa các đơn vị trong hệ thống ngân hàng trong công tác quản lý vay, trả nợ nước ngoài

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The STATE BANK _ _ _ _ _ _ _ _ _ the SOCIALIST REPUBLIC of VIETNAM independence-freedom-happiness _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ no: 160/QD-NH7 Hanoi, 8 June 1996 DECISION of the GOVERNOR of the STATE BANK issued regulations on coordination between the units in the banking system in the management of the loan foreign debt, _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ the GOVERNOR of the STATE BANK to base State Ordinance on 23/5/1990;
Pursuant to Decree No. 15/CP dated 2/3/1993 of the Government about the tasks, powers and responsibilities of the State management, ministerial bodies;
At the suggestion of Mr. Director of the Foreign Exchange Management;
 Decision: article 1.-attached to this decision, "regulations on coordination between the units in the banking system in the management of the loans, repayment of foreign countries".
Article 2.-this decision is effective from the date of signing.
Article 3.-The he: Governor Chief; Director of personnel and training; Director of the Foreign Exchange Management; The head of the Service, the relevant Department of the State Bank stated in section III of the regulation; Director of the State Bank's branch in the province, the city; the Director-General (Executive Director) of commercial banks, the Bank for investment and development and other relevant units responsible for the implementation of this decision.
REGULATIONS on COORDINATION BETWEEN the UNITS in the STATE BANK on the MANAGEMENT of the loans, REPAYMENT of FOREIGN ENTERPRISES (attached to decision No 167/QD-NH7 on 8/6/1996 of the Governor of the State Bank) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ to perform well the task of Government for banking on the loan management foreign debt, according to Decree 58/CP, Governor of the State Bank Regulation coordination between the units in the system of the Bank on the establishment of the Executive of the total borrowing limit, repay foreign debt and approval review process the loan conditions are charged as follows: i. on the ESTABLISHMENT and ADMINISTRATION of the LOAN LIMIT FOREIGN DEBT, the BUSINESS of the State Bank's governance bodies on currency, credit, responsible for controlling the flow of foreign currency into and out of Vietnam, including loans, repayment of foreign business. The control will through two main tools are: (1) the total foreign borrowing limit of 5 years and every year, (2) the provisions of the conditions of the loan, charged.
1-establishment of the foreign borrowing limit: Economic Research Service is responsible for:-building strategy of mobilizing and utilizing foreign capital and annual 5-year consistent with the strategy of economic development of the country;
-Coordinated with the Service: Service international relations, credit, foreign exchange management and operating plans of loan repayment, on limit foreign 5 years and annual report of the Governor of the State Bank to the Prime Minister for approval.
2-review of the conditions of the loan, the repayment of its foreign business: on the basis Of quota has been approved by the Prime Minister, the Governor of the State Bank for Foreign Exchange management interface done considering the conditions of the loan, the repayment of foreign enterprises based on the principle of : a) encourage preferential loans, restricting the foreign loans under commercial conditions, especially short-term commercial loans and borrowings from abroad to import consumer goods;
b) for State enterprises (including State-owned commercial banks) follow the total quota has been approved by the Government and should pay attention to the quantitative targets of foreign commercial loans of the ESAF programme; 18 point base, circular 20/07 TT-on NH7 26/3/1994 and the provisions amending, supplementing this circular to solve each particular case.
c) for State enterprises (including enterprises of foreign investment): total bases and limit the loan conditions stipulated in no. paid .... additional circular 07/TT-on NH7 26/3/1994 and the revised text of this circular complement, to resolve the case.
 II. REVIEW PROCESS and APPROVE the CONDITIONS of the LOAN REPAYMENTS of FOREIGN BUSINESSES 1-enterprises, credit institutions have borrowing needs foreign capital to send loans (as defined in the circular 07/TT-on NH7 26/3/1994 of the Governor of the State Bank) for the central State Bank (Foreign Exchange Management Service).
2-since getting enough records, in the period of 5 days, the foreign exchange management are of the opinion the Governor decided.
3-When a decision of the Governor, during 2 working days, Foreign Exchange Management has informed the Governor's decision to send business to perform.
4-in case the lender required to guarantee business, working with commercial banks or working with Service credit (if specified by the Government) to do the procedure guarantee. The commercial bank or Service credit considering the profile of foreign loans of enterprises should pay attention to the issues related as the legal personality of enterprises, financial capability, economic justification (the production approach), the credit contract will sign the loan conditions and pay to the State Bank report. After the comments agreed guarantees of commercial banks (or credit), the foreign exchange management general the Governor State Bank decision and approve the conditions of the loan.
5-after the approval of the State Bank and the commercial bank agreed to guarantee (for the loan guarantee is required), the new business is contracted with foreign credit. During 30 days after signing the contract, the business must submit a copy of the signed contracts attached to the exit plan, repay to the State Bank (Foreign Exchange Management Service). If the planned withdrawal of capital and repayment change, enterprises must report to the State Bank after 10 days.
6-Forex management fully informed foreign loans of enterprises have been approved for the State Bank branch, the city to monitor and test the performance of the contract of enterprise credit and the General report of the Central Bank (Foreign Exchange Management) as specified by the Governor. Special attention to the situation of capital withdrawal, use of capital and the repayment plan.
7-The Director General of the Commercial Bank reported the implementation of the direct contract borrowers or guarantors for the Bank (Foreign Exchange Management) on the State funds, use of capital and pay foreign debt according to the regulations of the Governor.
8-six months, foreign exchange management general report of the State Bank branch, the city and province of the commercial banks, the Governor, and recommended measures to solve.
9-based on the text issued on the management of foreign debt borrowing, inspectors State Bank in collaboration with the Service involved testing the implementation of the loan guarantee, foreign debt and open the L/C deferred credit institutions.
 III. COORDINATION BETWEEN the UNITS of the STATE BANK of The combined distribution between the units of the State Bank in loan management TW pay foreign debt done according to the following: 1-the Foreign Exchange Management:-function studies, advised advocates CHRISTOPHER DESRIAC , policy, and management regimes to pay foreign debt.
-Considering the conditions of the loan paid by enterprises the Governor for approval.
-Is the clue to track loan management situation and pay foreign debt and plan to sign a reported loan situation, the Governor charged the foreign debt in the country, and recommended measures to handle and send economic research Service to research and synthesis.
2-Economic Research Service:

Economic research service have a responsibility to comply with the provisions of point 1, section I above.
3-Service credit:-construction of the statute relating to the guarantee, the guarantee (including the L/C deferred). A guide to financial institutions perform.
-Monitor and check the guarantee loan, repayment of foreign countries (including the opening of the L/C deferred) of financial institutions, credit.
-Periodically report the Governor about the situation of foreign loan guarantee and to send foreign exchange management and Economic Research Service to the aggregate.
4-international relations Service:-is responsible for negotiating the conclusion of the credit contract with international financial organizations under the authorization of the Governor of the State Bank. In the course of negotiations to exchange with the Service, the relevant Bureau.
-After the credit contract is approved, notify Service Forex management the basic terms of the loan and send a copy of the contract for the Service Forex management to gubernatorial report, synthesis.
5-transaction: transaction State Bank reported data on the situation of funds, repayment of government loans by State banks to track for Foreign Exchange Management.
6-Inspector of the State Bank: coordinating with the Service Department of the Central Bank, the State Bank branch to conduct local inspection, inspection of the observance of the text of the State Bank of loans, repayment of foreign countries. Notify Service Forex management timely test results to General Government reports and State Bank Governor.
The addition of this provision by the State Bank Governor decided.

 



The STATE BANK (signed) Le Van Chau