Circular No. 05/2017/TT-NHNN dated June 30, 2017 of the Vietnam State Bank amending, supplementing a number of articles of the Circular No. 03/2016/TT-NHNN dated February 26, 2016 of the State Bank of Vietnam providing several instructions on foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises

THE STATE BANK OF VIETNAM

Circular No. 05/2017/TT-NHNN dated June 30, 2017 of the Vietnam State Bank amending, supplementing a number of articles of the Circular No. 03/2016/TT-NHNN dated February 26, 2016 of the State Bank of Vietnam providing several instructions on foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated June 16, 2010;

Pursuant to the Law on Management and Use of State Capital Invested in Production and Business at Enterprises dated November 26, 2014;

Pursuant to the Ordinance on Foreign Exchange dated December 13, 2005 and the Ordinance dated March 18, 2013 on amending and supplementing several Articles of the Ordinance on Foreign Exchange;

Pursuant to the Government s Decree No.219/2013/ND-CP dated December 26, 2013 on management of enterprise’ s foreign borrowing and repayment of foreign debts which are not guaranteed by the Government;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017 of the Government defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Foreign Exchange Administration;

The Governor of the State Bank of Vietnam hereby issues the Circular amending, supplementing a number of articles of the Circular No. 03/2016/TT-NHNN dated February 26, 2016 of the State Bank of Vietnam providing several instructions on foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises;

Article 1.To amend and supplement a number of articles of the Circular No. 03/2016/TT-NHNN

1. To amend and supplement Clause 2 Article 1 as follows:

“2. Registration, registration for changes, reporting mechanism in respect of foreign loans in the form of international bond issuance of enterprises which are not guaranteed by the Government under the particular provisions set forth by the State Bank of Vietnam (hereinafter referred to as State Bank).”

2. To supplement Point c into Clause 3 Article 14 as follows:

“c. Documents as stipulated under Point a and Point b of this Clause shall not be applied for foreign loans of commercial banks of which 50% of the charter capital is held by the State that are reported by the legal owner or representatives at these banks and approved by the representative offices before voting at the general meeting of shareholders, Board Management’s meeting, the Board of members’ meeting.”

3. To amend, supplement Clause 6 Article 14 as follows:

“6. Copy (countersigned by the borrower) of documents of competent authority on approval of foreign loans in accordance with laws on task and authority assignment in relation to implementation of authority, responsibilities and obligations of owners of state-owned enterprises and state-owned capital invested in enterprises, if the borrower is a state-owned enterprise excluding the case that the borrower is the commercial bank of which 100% of the charter capital is held by the State.”

4. To supplement types of the borrower being commercial banks of which over 50% of the charter capital is held by the State (code SOB) into group of banks at Point 5 under guidelines on making reports of Appendix 4A and Appendix 4B promulgated together with the Circular No. 03/2016/TT-NHNN.

Article 2.Responsibilities and implementation organization

Head of Office, Director of Foreign Exchange Administration, Head of affiliates of the State Bank, Director of the State Bank branch of centrally-affiliated cities and provinces, President of the Management Board, President of the Members Board, and General Director (Director) of commercial banks of which50% of the charter capital is held by the State, shall be responsible for enforcing this Circular.  

Article 3. Implementation provisions

1. This Circular takes effect on August 15, 2017.

2. This Circular shall annul:

a) Circular No. 18/2011/TT-NHNN dated August 23, 2011 of the State Bank of Vietnam guiding foreign exchange management for medium- and long-term overseas loans of commercial banks being state enterprises;

b) The phrase “ (except for commercial banks being state enterprises)” and the phrase “and Clause 3” under Clause 1 Article 1; Clause 3 Article 1 of the Circular No. 12/2014/TT-NHNN dated March 31, 2014 of the Vietnam State Bank regulating on conditions for foreign loansof enterprises without government guarantee.

For the Governor

The Deputy Governor

Nguyen Thi Hong