Press Release on issuance of Circular No.03/2016/TT-NHNN

Press Release on issuance of Circular No.03/2016/TT-NHNN on February 26th, 2016 on guiding the forex management of borrowing and repayment of overseas loans applied to enterprises without gorvernment guarantee.

Improving the legal framework for management of the borrowing and repayment of enterprises in general and enterprises not guaranted by the gorvernment in particular, in arcordance with provisions in Vietnamese Enterprise Law 2014 and Investment Law 2014, the State Bank of Vietnam (SBV) issued Circular No.03/2016/TT-NHNN on February 26th, 2016 on guiding the forex management of borrowing and repayment of offshore loans of enterprises without government guarantee.

Circular No.03/2016/TT-NHNN includes 8 Chapters, 51 Articles with main substances as follows:

Registration procedures, registration on changing foreign loans of the enterprise which are not guaranteed by the government;

Opening and using borrowing and repayment account at the bank providing account services in Vietnam;

Withdrawing capital, repayment and money remittance of foreign loans;

Regulation on forex management of those transactions relating to guarantee for overseas loans;

Providing and managing information on the official website of management of borrowing and repayment of oversea loans of enterprises without government guarantee (hereafter called as website);

The procedure of statistic reporting on borrowing and repayment of offshore loans of enterprises without government guarantee.

The Circular requires new content on IT application in the management of borrowing and repayment of overseas loans via website. This circular’s requirements on using website is expected to support the management of database on borrowing and repayment of overseas loans applied to enterprises not guaranteed by the gorvernment. It also helps to reform administrative procedures in managing overseas borrowing and repayment of the enterpires as well as of the SBV in line with the set orientation of the Government on administrative reform.

The Circular will take effect from April 15th, 2016 and replace Circular No.09/2004/TT-NHNN dated December 21st, 2004 of the SBV on guiding enterprises on taking and repaying overseas loans, and Circular No.25/2014/TT-NHNN dated September 15th, 2014 of the SBV on guiding registration procedures, registration on changing overseas loans applied to enterprises without gorvernment guarantee.