Headlines 24/02/2022 08:55 SA

Regulatory conditions for assent to foreign loans of wholly state-owned enterprises to be amended

Bảo Trân

On February 14, 2022, the Minister of Finance issues the Circular No. 09/2022/TT-BTC amending the Regulations attached to the Circular No. 153/2014/TT-BTC dated October 20, 2014 pertaining to the assessment, review and approval of non-government-guaranteed foreign loans of enterprises of which more than 50% of charter capital is owned by the State.

According to this Circular, changes in conditions for assessment, review and approval of foreign loans are specified as follows:

- Projects funded by foreign loans must serve production and business activities in the main business lines of enterprises; be owned or developed by enterprises; and be included in the 5-year investment and development plans, the production and business plans of enterprises.

(According to regulations currently in effect, these projects are required to be part of the investment plans approved by competent authorities).

- Owner's representative agencies approve policies to take out foreign loans.

(According to regulations currently in effect, the owners are required to approve policies to take out foreign loans).  

- Lenders agree in writing to offer foreign loans.

(According to regulations currently in effect, feasible foreign loan repayment plans are evaluated and approved by owners).

Circular No. 09/2022/TT-BTC is set to commence on April 1, 2022.

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