Be cautious with loan offers from foreign partners.

(Official Dispatch No. 2208/BTC-QLN dated February 19, 2013 of the Ministry of Finance)

Recently, a number of individuals (including Vietnamese and foreigners) have used the influence of reputable organizations and individuals or documents called authorization letters from foreign corporations (the authenticity of which has not been proven) to approach and introduce themselves as representatives of international organizations to work with a number of enterprises, units, ministries and branches at the central and local levels to offer loans with large amounts of money and attractive loan conditions. The prerequisite for the loan offers of these individuals and organizations is to have a deposit account or a government guarantee issued by the State Bank, the Ministry of Finance, or a guarantee from commercial banks or local authorities. On the other hand, during the transaction process, they often request Vietnamese agencies and organizations to issue loan commitment letters, loan authorization letters, loan acceptance decisions... to use for bad purposes, or to continue to solicit other units and organizations.

Through work, investigation and verification, the Ministry of Finance learned that these individuals and organizations are essentially only brokers to receive commission fees if the transaction is carried out, and are not capable of providing finance to Vietnam. The loans offered by foreign financial corporations (if any) are normal commercial loans with high costs. The Ministry of Finance and the State Bank of Vietnam also issued Official Dispatches No. 701/NHNN-TD dated July 1, 2004 and No. 9678/BTC-QLN dated July 7, 2009 to ministries, branches, People's Committees of provinces and cities, branches of the State Bank and credit institutions from the central to local levels to warn caution with loan offers from foreign partners (attached). However, in recent times, the Ministry of Finance has received information that organizations and individuals continue to offer to arrange or lend capital from foreign sources to the People's Committees of provinces, credit institutions and Vietnamese enterprises in the form that has been warned.

In order not to affect the reputation as well as avoid wasting money and time of agencies and enterprises from the central to local levels, and at the same time avoid causing unpredictable risks, the Ministry of Finance informs ministries, branches, People's Committees of provinces and cities to know and direct their affiliated units:

1. Be cautious in contacting and exchanging with partners (both Vietnamese and foreigners) offering foreign loans; especially partners who are not financial - credit institutions, large banks with prestige and experience operating in the international financial market.

2. Do not issue documents such as invitation letters, guarantee letters, loan authorization letters, loan commitment letters, loan acceptance decisions or documents with similar content without accurate and complete information about the partner.

3. In case of necessity, it is necessary to contact and coordinate with the State Bank of Vietnam, the Ministry of Public Security, the Ministry of Foreign Affairs (or directly with the Vietnamese Embassy in the partner's home country) or the Embassy/Consulate/Official Diplomatic Representative in Vietnam of the country/territory of the foreign partner to verify and collect full information on the legal status, financial capacity... of the foreign partner as well as the "representative" introduced to approach before the transaction to prevent risks.

The Ministry of Finance hereby notifies agencies and units to know and implement.

KT. Minister
Deputy Minister
Truong Chi Trung