Suspicious foreign loan offers cause alarm

The State Bank of Vietnam has cautioned financial institutions, state agencies, and businesses against accepting offers from foreign individuals and organizations to get them long-term low-interest loans and non-refundable aid.

It has raised the alarm following recent reports of foreigners making these offers on condition they can get a government or Ministry of Finance or SBV guarantee.

The central bank has issued an Official Document reminding banks to remember foreign debt regulations when considering loan offers.

It also tells them to work closely with law firms, embassies, and credit rating agencies to verify the financial and legal capacity of foreign partners before entering into any agreement, and report all offers pertaining to loan offers.

It ordered its offices to support local authorities in precluding credit risks arising from foreign loans.

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