Before entering into a loan agreement with a foreign lender including a parent company, a Lao PDR company needs to obtain an 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:

names of the local borrower (an applicant) and the foreign borrower;

relationship of a (e.g. a parent company and a subsidiary), details of corporate registration documents;

loan details: a purpose, a currency, a principal amount, an interest rate, a term and a repayment plan;

details of the borrower’s bank account in Laos.

Supporting Documents with Respect to Proposed Loan

The BOL would require a number of documents to support the above application:

1. Business plan of the borrower;
2. Loan use plan;
3. Loan repayment plan;
4. Revenue and expenditure plan of the borrower;
5. Draft loan agreement; and
6. Shareholders/board resolutions or minutes of meeting of the borrower with respect to the loan.

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

Corporate and Personal Documents of Borrower

Further, copies of the following corporate documents of the borrower and personal documents of the 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 Bank of Lao PDR. In case that the Bank of Lao PDR calls for additional documentation or information, we can keep you advised accordingly.