Rules on foreign currency lending

Question:

 

What are the procedures on lending in foreign currencies by credit institutions and foreign bank branches to resident borrowers?

 

 

 

Step 1: Upon the demand for foreign currency loans, credit institutions and foreign bankers should submit their written request to the State Bank of Viet Nam for approval of lending in foreign currencies (The Department of Monetary Policy);

 

Step 2: Within the maximal 30 days since the State Bank of Viet Nam receives the written request for foreign currencies by credit institutions and foreign bank branches, it will write  back verifying its acceptance or refusal.  

 

 

 By post;

 

 Direct submission

 

 

A written request (01) on foreign currency loans of credit institutions and foreign bank branches includes following contents:

 

 Credit institutions have to verify that the production and business plans of the borrowers are feasible and efficient and their borrowers can fully meet the lending conditions in line with law with the possibility to recovery debts on due date (both principal and interes); reports in details on financial performance, production activities, business, sources of debt payments, demands for foreign currency loans to implement projects, production and business plans on encouraging and prioritized fields in accordance with the Government’s orientations;

 

 Credit institutions send specific reports on the borrowers’ evaluation and lending approval including: the borrowers’ demand for loans in foreign currencies to implement priority production and business plans in accordance with Resolutions, Degrees, Decisions and other documents of the Government and Prime Minister; the approved amount of money to lend; the borrower’s financial condition, productive and business capacity, resources of the borrowers’ repayment, and other contents to make sure the feasibility of capital utilization and that the customers meet sufficient requirements in line with laws.

 

Credit institutions and foreign bank branches should be responsible for the results of evaluation, the decision to provide loans in foreign currencies, and information provided in the written requests.

 

- Number of dossier: 01

 

- Time of processing: 30 working days.

 

- Subjects of administration implementation: Organization.

 

- Implementor of the administrative procedure: The Department of Monetary Policy  

 

- Fee: None 

 

- Name of application form: None./.