Dear Valued customers,
Shinhan bank Vietnam (The bank) would like to make announcement to esteemed customers on some notices when performing borrowing and repayment of offshore loans since 15/11/2022 under circular 12/2022/TT-NHNN by the State Bank of Vietnam (SBV) as follows:
1. Period of offshore loan in the form of money borrowing
Period of offshore loan in the form of money borrowing is counted from the first withdrawal (the day when the fund has been credited to the borrower’s account) to the expected final repayment.
2. Clarify the remittance purpose on the wire transfer message
Customer being the borrower takes the responsibility to declare and request the lender to clarify the remittance purpose on wire transfer messages relating to offshore loan. As for wire transfer messages that do not mention purposes relating to offshore loan, the bank would have no clues to verify the offshore debt obligation as well as to perform the repayment (principal and interest) when it comes to due date.
3. New regulations on obligations of notifying and submitting documents to the Bank
Since 15/11/2022, customers being the borrower need to notify and/or submit additional documents in following cases:
- (i) Regarding short term offshore loan: Submit “The investment project, plan on offshore loan usage approved by the borrower’s competent authorities” on the first withdrawal and “Copy of report screen on the SBV’s website with the borrower’s confirmation” on withdrawals since the 2nd time applied to multi withdrawals offshore loan and on repayments.
- (ii) Notify to the Bank on the fact that the short-term offshore loan has been extended under the annex agreement to medium long-term loan within 12 months since the first date of withdrawal.
- (iii) Notify and send related documents within 05 working days from the date of withdrawal of loan proceed or debt repayment in case the withdrawal of loan proceed, debt repayment is not carried out through foreign borrowing and repayment account (FBRA) according to circular 12/2022/TT-NHNN.
4. Online report on the performance of borrowing and repayment of offshore loan
Since 15/11/2022, the borrower must access to the SBV’s website monthly to make the online report on the performance of short, medium and long-term offshore loans. Therefore, customers being the borrowers are pleased to promptly make the registration, update proceeded account to the SBV’s website for completing the monthly report as regulations.
5. Currency of the offshore loan being different from the currency of Direct Investment Capital Account (DICA)
In case the currency of medium, long-term offshore loan being different from the currency of DICA opened at the Bank, customers being borrower may open FBRA with the same currency to the offshore loan to perform the offshore loan.
6. Account for performing offshore loan in Vietnam Dong (VND)
In case customer is a foreign investor (lender), taking profits from direct investment activities in the territory of Vietnam and lending it to the borrower being an enterprise to which the lender has contributed capital, the customer may open and use VND demand account of non-residents at the Bank to make disbursement and collection of debts related to foreign loans in VND.
7. Performed account for the offshore loan in the form of deferred payment for goods import
Transactions of repayment transactions (including principal and interest), fee relating to offshore loan in the form of deferred payment for goods import are not required to be performed through FBRA.
8. Performance of security obligations in the form that the secured party receiving the property itself
Customer being a borrower is responsible for notifying the Bank information about the debt obligation of customer that has been paid in the form that the secured party receives the property itself to replace the performance of the debt obligation of customer.
For more details of above listed notices as well as other relating regulations, esteemed customers are pleased refer to Circular 12/2022/TT-NHNN dated 30/09/2022 by the SBV.
Shinhan Bank Vietnam Ltd.