On 24 June 2014, Ministry of Finance (“MOF”) promulgated Circular No. 81/2014/TT-BTC (“Circular 81”) regulating mechanism on providing information, report applied to programs and projects guaranteed by the Government.
According to this Circular, the Investor (the Guaranteed) shall provide information before being granted guarantee, report on each bond issuance, and report periodically and extraordinarily during the guarantee term to the Guarantor (MOF).
Apart from report’s contents, Circular 81 also regulates the time for submitting periodic reports including: Quarterly report on capital withdrawal, repayment for the project shall be submitted within the first 10 days of each quarter during capital withdrawal period; 6-monthreport on project implementation shall be submitted within the first 10 days of January and July annually; Report on evaluation of completion of construction stage shall be submitted within 06 months after the signing-date of the last inspection minutes; Report on the loan completion shall be submitted within one month after the actual repayment of the last due debt; etc.
Moreover, Circular 81 regulates that extraordinary report must be conducted: Within 15 days prior to expired date of capital withdrawal or prior to the next debt repayment when extending the duration of capital withdrawal, adjusting the duration of loan repayment; Within 10 days from the date arising any changes or any events that may have negative effects on project implementation and loan repayment of the Guaranteed; Within 5 working days from the receipt date of MOF’s official letter requesting extraordinary report; Within 45 days prior to due date of debt repayment when the Guaranteed is insolvent; etc.
In the event that the Guaranteed is inspected due to violation of responsibility to provide information and report for 3 consecutive times and continue to breach the responsibility, such Guaranteed may not be considered to be guaranteed for other projects.
This Circular takes effect on 10 August 2014.