Two new regulations on financial activities to take effect from August

Illustrative image (Photo: vneconomy.vn)

New regulations on the operation of money exchange agents of bordering countries and eligibility requirements for foreign loans without the Government’s guarantee will officially take effect from August, 2023.

The State Bank of Vietnam issued Circular 04/2023/TT-NHNN dated June 16, 2023 specifying regulations on the operation of money exchange agents of bordering countries which takes effect on August 1.

Under the circular, the agents may only operate in the form of using Vietnamese dong to buy money from bordering countries sold by inpiduals.

Those located at departure waiting rooms at international and main border gates may sell bordering countries' currency in cash for Vietnamese dong to inpiduals.

They may also sell money of bordering countries in cash to foreign inpiduals who have completed exit procedures.

Illustrative image (Photo: VNA)

Regarding requirements for foreign loans that are not guaranteed by the Government, the central bank’s Circular 08/2023/TT-NHNN dated June 30, 2023 stipulates that those subject to this regulation include residents that are enterprises, cooperatives, cooperative unions, credit institutions and foreign bank branches (FBBs) established and operating in Vietnam and known as the parties applying for foreign loans (borrowers), and credit institutions or FBBs in Vietnam where borrowers’ accounts are opened to serve their foreign borrowing and repayment of foreign loan debts.

Borrowers of foreign loans in the form of international bond issuance, in addition to meeting the conditions for foreign loans that are not guaranteed by the Government, must comply with the provisions of law on the offering of corporate bonds to the international market and other relevant regulations.

Borrowers who are state-owned enterprises, in addition to meeting the loan conditions, must comply with regulations on management and use of state capital invested in production and business at enterprises and other relevant regulations.

This circular will come into effect on August 15./.