Draft Decree on the Issuance and Management of Government Guarantees (GGU)
Within a year, Vietnam's Belt on Sovereign Guarantees is being tightening again. Since 1 March 2017, Decree No. 04 imposes on both domestic sponsors and foreign lenders with a stricter regime with respect to issuing government guarantees and undertakings (GGU) in Vietnam. It requires a longer planning stage, stricter conditions for eligibility, lower cap on guaranteed amount with higher fees. Those restrictions remain in the Draft Decree.