On February 14th, 2022, the Ministry of Finance issued Circular No. 09/2022/TT-BTC stipulating the amendments and supplements to several articles on considering, verifying and approving foreign loans by self-borrowing and self-paying method of enterprises whose more than 50% of charter capital is owned by the State. Accordingly, Circular No. 09/2022/TT-BTC promulgated together with Circular No. 153/2014/TT-BTC stipulates the following notable points:
- Amending the applicable subjects of Circular No. 153/2014/TT-BTC, including: owner’s representative agency; wholly state-owned enterprises, excluding enterprises that are credit institutions; and relevant agencies, organizations and individuals.
- In addition, several conditions for consideration, examination and approval of foreign loans have been amended. Specifically,
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- Circular No. 153/2014/TT-BTC only stipulates that investment projects are included in investment plans approved by competent authorities. In Circular No. 09/2022/TT-BTC, it has been amended to the project using foreign loans to serve production and business activities in the main business lines of enterprises, invested by the enterprise and included in the 5-year investment and development plan, the annual production and business plan of the enterprise;
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- Circular No. 153/2014/TT-BTC stipulates that the owner has approved the foreign loan policy by the method of self-borrowing and self-paying. In Circular No. 09/2022/TT-BTC, it has been amended to the owner’s representative agency that has approved the foreign loan policy.
- Circular No. 09/2022/TT-BTC has amended and supplemented the sequences and procedures for considering and approving foreign loans for appraisal content by the Ministry of Finance. Accordingly, the appraisal content includes:
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- The satisfaction of conditions for appraisal and approval of foreign loan policy;
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- Completeness of records;
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- The financial situation of the enterprise at the time of appraisal;
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- The plan to balance the reciprocal capital of the enterprise when borrowing foreign debt by the self-borrowing and self-pay method;
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- The ability to repay foreign loans according to the policy approved by the owner’s representative agency at the time of appraisal.
Circular No 09/2022/TT-BTC will be of full force and effect as of April 1st, 2022.
Download the legal update as a PDF here.
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