On December 26, 2013, the Government issued the Decree No. 219/2013/ND-CP on management of enterprises’ borrowing of foreign loans and payment of foreign debts without government guarantee.
The Decree also prescribes elaborating, promulgating, and organizing the implementation of, legal documents on management of the borrowing of foreign loans and payment of foreign debts by the mode of self-borrowing and self-payment; monitoring cash flows related to the borrowing of foreign loans and payment of foreign debts by the mode of self-borrowing and self-payment for synthesizing the international payment balance, regulating monetary policies and managing foreign exchange; reviewing and reporting information on the borrowing of foreign loans by the mode of self-borrowing and self-payment; disseminating policies and laws on management of the borrowing of foreign loans by the mode of self-borrowing and self-payment; inspecting, examining and supervising the observance of the law on management of the borrowing of foreign loans by the mode of self-borrowing and self-payment and organizing professional training and retraining in operations of management of the borrowing of foreign loans by the mode of self-borrowing and self-payment.
The state management on foreign loans and debts by self-borrowing and self-payment must ensure principles such as: ensuring the safety of debts within the limit approved by a competent authority, and ensuring the national financial security and macroeconomic balances; foreign loans by the mode of self-borrowing and self-payment through import of goods on deferred payment must comply with foreign exchange management policies, trade policies and other relevant regulations; borrowers shall take responsibility before law for the signing and performance of contracts on the borrowing of foreign loans by the mode of self-borrowing and self-payment. The Government is not responsible for the borrowing of foreign loans and payment of foreign debts by borrowers by the mode of self-borrowing and self-payment… When necessary, in order to ensure national financial and monetary security and debt safety criteria, the Prime Minister shall decide on the application of appropriate measures to manage the borrowing of foreign loans and payment of foreign debts by the mode of self-borrowing and self-payment.
This Decree takes effect on February 15, 2014.
Source: www.luatvietnam.vn
