Approval Requirements for Foreign-Source Loans in Lao PDR

Before entering into a loan agreement with a foreign lender, including a parent company, a company registered in the Lao PDR must obtain prior approval from the Bank of the Lao PDR (BOL).

Below is an outline of the key documentation that must be prepared and submitted to the BOL.

Application Form for Foreign-Source Loan Approval

This form includes standard information such as:

1. ‍Names of the parties: The Lao borrower (applicant) and the foreign lender;
2. ‍Relationship between the parties: For example, parent company and subsidiary, along with copies of relevant corporate registration documents;
3. ‍Loan details: Purpose of the loan, currency, principal amount, interest rate, loan term, and repayment plan;
4. ‍Banking information: Details of the borrower’s bank account in Laos.

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Supporting Documents for a Proposed Loan

To support the loan application, the Bank of the Lao PDR (BOL) typically requires the following documents:

1. ‍Business plan of the borrower;
2. ‍Loan utilization plan, detailing how the loan proceeds will be used;
3. ‍Loan repayment plan;
4. ‍Revenue and expenditure forecast of the borrower;
5. ‍Draft loan agreement; and
6. ‍Shareholders’ or Board of Directors’ resolutions authorising the loan.

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These documents may be concise but must be submitted in the Lao language. If the originals are in English, certified Lao translations should be provided.

Corporate and Personal Documents of the Borrower

In addition to the application and supporting documents, the following corporate and personal documents must be submitted:

1. ‍Enterprise Registration Certificate;
2. ‍Most recent Tax Clearance Certificate;
3. ‍Capital Importation Certificate (if applicable);
4. ‍Identification of the Managing Director:

• ‍Passport (for foreign nationals), or
• Lao national ID card (for Lao nationals).

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The above documents are typically required as part of the foreign-source loan approval application to the Bank of the Lao PDR.

Please contact us if you require assistance with obtaining BOL approval or would like to schedule a consultation regarding a foreign-source loan.