On 31 December 2013 the State Bank of Vietnam (SBV) enacted Circular No. 37/2013/TT-NHNN on guiding the foreign exchange management of overseas loans and recovering guaranteed loans for non-residents (Circular 37).

Economic institutions must register with the SBV Department of Foreign Exchange Management before offering overseas loans or making a loan guarantee for a non-resident. If there are more than two (02) economic institutions entering in a loan agreement as the lenders or acting as guarantors for non-residents each economic institution must register for its role in the loan or guarantee.

If the loan is repaid or the guarantee satisfied within 30 days of granting the loan or guarantee, there is no registration required.

Prior to transferring money for an overseas loan, the economic institutions must open an account for extending loans to overseas borrowers at a permitted credit institution providing account services. Every transaction relating to the overseas loans such as disbursement of loans, recovery of original debts and interests, etc., must be carried out through this account.

Economic institutions must open an account for making guarantees and recovering guaranteed loans from non-residents. Within 10 days from the date of executing the guarantee agreements, economic institutions have the responsibility to report their guarantees for non-residents to the SBV according to the sample report attached to Circular 37.

Circular 37 took effect on 14 February 2014.