Uni 21-04-2014 - Guidance on conditions of foreign loans

According to Circular No.12/2014/TT-NHNN guiding that enterprises without the government’s guarantee (Borrowers) want to borrow foreign loans must satisfy some following conditions:

•           Borrowers are allowed to take foreign loans to implement their investment projects or the enterprises to which the borrowers directly contribute.

•           Foreign loan agreement must sign in writing before disbursing the loans.

•           Loans must be in foreign currencies.

•           The costs arising from the foreign loans will be negotiated by lenders, borrowers.

•           Short-term loans are not used as long-term and mid-term loans.

•           The maximum balances of the long-term and mid-term loans (including domestic loans) of the borrowers do not excess the difference between the total investment capital and the contribution capital as stated in the Investment Certificate.