![]() Debts arising from acquisition of real property and project transfers.Debts arising from acquisition of shares/contributed capital in other entities and.Debts arising from purchase of securities.Further, the SBV plans to prohibit the use of foreign short-term loans to be used for:.Private enterprises will only be permitted to access foreign short-term loans for the purpose of repaying debts coming due within 12 months from the date of the loan agreement.Unlike the Current Circular, in which the loan’s purpose was not explicitly prescribed for foreign loans of various tenors (i.e., short-term, medium-term and long-term), the Draft Circular would require each type of foreign loan be limited to a specific purpose as follows: 1- Foreign loans allowed for limited purposes ![]() Some key changes in the Draft Circular are set out below. The SBV is still finalizing the Draft Circular and there is no guarantee the contents of the Draft Circular will remain the same before it is officially issued later this year. ![]() In the Draft Circular, the SBV indicates its intention to tighten control over foreign loans to address the risks on currency fluctuation and the national debt limit. The State Bank of Vietnam (“ SBV”) released a draft Circular on strengthening conditions for non-government guaranteed foreign loans (the “ Draft Circular”) which aims to replace Circular No. ![]()
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