Gov't of Vietnam says it will not back unguaranteed foreign loans
Viet Nam News/Asia News Network
January 4, 2014, 12:00 am TWN
Hanoi--The Vietnamese government will not be responsible for foreign loans that it has not guaranteed, according to a new prime ministerial decree.
The decree will come into effect on Feb. 15, 2014.
Borrowers impacted by the new decree include enterprises that have been established and are operating under the Law of Enterprises, credit institutions and foreign bank branches operating under the Law on Credit Institutions, or co-operatives and co-operative associations operating under the Law on Cooperatives.
The decree requires the State Bank of Viet Nam (SBV) and the ministries of Finance and Planning and Investment to watch closely the situation of foreign loans against the nation's macro-economic indicators and report their findings to the Prime Minister.
Their findings will be the basis for the prime minister to approve ceilings for enterprises' foreign loans and repayments.