Some changes to the registration, management of loans and foreign debt repayment of enterprises
Inco Minh Anh Law Firm would like to send some changes to the management of foreign borrowing and repayment of enterprises according to Circular No. 12/2022/TT-NHNN of the State bank of Vietnam effective from 15 November 2022 as follows:
Regarding the extension of the maximum term under which short-term foreign loans exceeding 1 year can be paid without having to register a loan with SBV from 10 days to 30 working days (Article 11). Documents to be sent to service providers when withdrawing capital and repaying debts (Article 45) (applicable to short-term loans of less than 1 year, import of goods with deferred payment (*)):
Plan for using loan capital and Documents on implementation of online reporting regime on foreign borrowing and debt repayment, Circular 12/2022/TT-NHNN adding more requirements on documents when paying for imported goods For deferred payment, enterprises must submit additional loan reports of late payments to service-providing banks, and regulations on imports of deferred goods must report loans (as stipulated in Circular No. 05). /2016/TT-NHNN added Clauses 3, 4, 5, 6, Article 4 of Circular 03/2016/TT-NHNN) unchanged. Accordingly, for shipments imported from abroad within 45 days from the date of customs clearance or 90 days from the date of B/L but have not yet been paid, enterprises need to report on the website of the State Bank to obtain Payment can be made via Bank.
For the case of capital withdrawal and debt repayment not through the enterprise’s foreign loan account: the borrower needs to send additional notices and send documents proving the withdrawal of capital and debt repayment in any form. using accounts for borrowing and paying foreign debts to service-providing banks within 05 working days from the date of capital withdrawal or debt repayment (Article 34).
Changing the reporting period from quarterly to monthly for loans: Enterprises will have to make an online report on the SBV’s website (“Website”) on the situation of foreign borrowing and debt repayment. not guaranteed by the Government of enterprises with monthly reporting period. Paper reports are only accepted in case of technical errors of the website (Article 41). Accordingly, corporate customers (especially FDIs) note:
Subjects: Cash loans of less than 1 year AND foreign loans in the form of deferred import of goods (reporting according to Article 41 of this Circular).
Goods on deferred payment under Article 4 of TT 12 are defined as follows:
(1) the amount unpaid from the date of customs clearance of the import declaration of the goods to the 45th day or
(2) the unpaid amount from the date of Bill of Lading (B/L) to the 90th day (only in TH, no need to present the customs clearance import declaration to the Bank)
Report on December 5, 2022: report for November 2022 – the balance at the beginning of November 2022 is the end of the third quarter of 2022, the data generated in the period is the sum of October and November 2022. Reports from the period 05/01/2023 will make monthly reports as usual.
In addition, you should also note to update the sample forms with the service provider bank (because each bank may have its own form) and the registration and reporting form according to Circular 12/2022/TT-NHNN. when making registration, loan report (paper copy).
Please contact Inco Minh Anh law firm for advice on loans from abroad to limit risks and ensure legality according to the new regulations of Vietnamese law.