Dear Valued Customers,
United Overseas Bank (Vietnam) Limited (hereinafter called “UOB Vietnam”) would like to thank you for your continued support and it has been a pleasure serving you.
On 30 Sep 2022, The State Bank of Vietnam (“SBV”) released Circular 12/2022/TT-NHNN on guidelines for foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises (“Circular 12/2022”). This Circular prescribes the order and procedures for registration and registration for changes in offshore loans of enterprises that are not guaranteed by the Government; the opening and use of the Borrower's and Lender's accounts; capital withdrawal, money transfer related to loan performance; the transfer of funds related to the enforcement of security measures for offshore loans; use the Website; and the reporting regime on offshore loan repayment that are not guaranteed by the Government.
Circular 12/2022 comes into force from 15 Nov 2022 and replaces Circular 03/2016/TT-NHNN dated 26 Feb 2016 on guidelines for foreign exchange administration in respect of enterprise’s foreign borrowing and foreign debt repayment of enterprises and its amendment, supplements
By this notice, UOB Vietnam would like to summarize some key points of Circular 12/2022 as follows:
1. Definition of Offshore loan
The offshore loan, as defined under Circular 12/2022 shall be the loan offered by offshore Lender by means of:
- Lending contracts
- Deferred payment contracts for import of goods
- Lending entrustment contracts
- Contracts for finance leasing
- Debt instrument issuance on the international market of the Borrower
Offshore loan granted by deferral of payment for imported goods shall include imports on which the first date of withdrawal precedes the last date of payment in which the date of withdrawal shall be:
- The ninetieth day from the date that transport documents are issued if the bank providing account services requires transport documents included in the payment documents
- The forty-fifth day from the date that the examination of information in the cleared customs declaration if the bank providing account services does not require transport documents included in the payment documents
Offshore loans made in the form of deferred payment for import of goods shall not be covered by the provisions on registration or registration for changes of offshore loans.
The bank transfer for repayment of the debt (principal and interest) and charges relating to the offshore loan granted by deferral of payment for imported goods is not necessarily made via the offshore loan account.
However, the Borrower under concept of deferred payment for imported goods is obligated to report to SBV following the provisions of this Circular 12/2022.
2. The use of Websites
Borrower is required to use the Websites in the following cases:
- Registration/ Registration for change of medium-long term offshore loans (except for offshore loan under deferred payment for imported goods) [Highly recommended]
- Reporting on the status of offshore loan performance [Compulsory]
- Updates on changes to medium-long term offshore loans and registration for changes is not required [Compulsory, please find more details in below Item 5]
Procedures for registration and issuance of log-in accounts for the borrowers
- Users fill their information in online declaration forms to apply for log-in accounts according to instructions available on websites, and then print out these forms and append their signatures and stamps
- Users send the declaration forms referred to in subparagraph a of this clause by post or directly submit these forms to the State Bank branches of provinces where borrowers' head offices are located
- Within a maximum duration of 03 (three) working days of receipt of the request for issuance of user’s log-in accounts along with valid and adequate information, the respective State Bank branches will consider approving and granting log-in accounts sent to the registered email address of users. In case of rejection, an online response including clear explanation for this rejection must be sent to applicants
3. Reporting regulations applied to the borrower
On the monthly basis, no later than the 5th day of the month immediately after the reporting period, the Borrower must prepare an online review report on short-term, mid-term and long-term loans on Websites.
Where any technical failure in Websites arises that makes the reporting unfeasible, the Borrower shall send a written report using the form in Appendix 05 of this Circular 12/2022.
UOBV will require the Borrower to provide the screenshot of the report on the Websites, certified by the Borrower to prove the Borrower's compliance with the online reporting regime on short-term foreign loan and repayment (inclusive of offshore loan under concept of deferred payment for imported goods).