Before entering into a loan agreement with a foreign lender including a parent company, a Lao PDR company needs to obtain approval of the Bank of Lao PDR (BOL). Below, we outline the documents that need to be prepared and submitted to the BOL.

Application Form for Foreign-Source Loan Approval

This document contains standard enquiries, such as:

1. Names of a local borrower (an applicant) and a foreign lender;
2. Relationship between a borrower and a lender (e.g. a parent company and a subsidiary), details of their corporate registration documents;
3. Loan details: the purpose, currency, principal amount, interest rate, term and repayment plan;
4. Details of the borrower’s bank account in Laos.

Supporting Documents with Respect to a Proposed Loan

The BOL usually requires a number of documents to support the application:

1. Business plan of a borrower;
2. Loan use plan;
3. Loan repayment plan;
4. Revenue and expenditure plan of a borrower;
5. Draft loan agreement; and
6. Shareholders'/Board of Directors' resolutions of a borrower with respect to a loan.

Such documents may be brief and need to be submitted in the Lao language. Alternatively, documents in English can be accompanied by the Lao translation.

Corporate and Personal Documents of a Borrower

Further, copies of the following corporate documents of a borrower and personal documents of its managing director need to be submitted:

1. Enterprise Registration Certificate;
2. Most recent Tax Certificate;
3. Capital Importation Certificate (if applicable); and
4. A passport (if a foreigner) or a Lao national ID card (if a Lao national) of the managing director of the borrowing company.

The above information and documents are typically required for the foreign-source loan approval application to the BOL. Please contact us if you would like to obtain  approval of a foreign-source loan or need a consultation.