Bản dịch văn bản 935/2004/QĐ-NHNN
quyet-dinh-935-2004-qd-nhnn
Cơ quan ban hành: Ngân hàng Nhà nước Việt Nam
Ngày ban hành: 2004-07-23

DECISION No. 935/2004/QD-NHNN OF JULY 23, 2004 PROMULGATING THE REGULATION ON BIDDING FOR GOVERNMENT BONDS AT THE STATE BANK THE STATE BANK GOVERNOR Pursuant to Vietnam State Bank Law No. 01/1997/QH10 of December 12, 1997 and Credit Institutions Law No. 02/1997/QH10 of December 12, 1997; Pursuant to Law No. 10/2003/QH11 of June 17, 2003 Amending and Supplementing a Number of Articles of the Vietnam State Bank Law; Pursuant to the Government's Decree No. 86/CP of November 5, 2002 defining the functions, tasks, powers and organizational structures of ministries and ministerial-level agencies; Pursuant to the Government's Decree No. 141/2003/ND-CP of November 20, 2003 on the issuance of Government bonds, Government-underwritten bonds and local administration bonds; After reaching agreement with the Finance Ministry and at the proposal of the director of the Credit Department, DECIDES: Article 1.- To promulgate together with this Decision the Regulation on bidding for Government bonds at the State Bank. Article 2.- This Decision takes implemen-tation effect 15 days after its publication in the Official Gazette. The previous regulations on bidding for foreign-currency treasury bills and Government bonds at the State Bank cease to be effective, including: - The State Bank Governor's Decision No. 53/2001/QD-NHNN of January 17, 2001, promulgating the Regulation on bidding for treasury bills at the State Bank; - The State Bank Governor's Decision No. 111/2004/QD-NHNN of February 2, 2004, promulgating the Regulation on bidding for foreign-currency Government bonds at the State Bank. Article 3.- The director of the Office, the director of the Credit Department, the director of the State Bank's Transaction Office, the heads of the concerned units of the State Bank, the directors of the State Bank's provincial/municipal branches, the chairmen of the Managing Boards, the general directors (directors) of credit institutions shall have to implement this Decision. For the State Bank Governor Deputy Governor PHUNG KHAC KE REGULATION ON BIDDING FOR GOVERNMENT BONDS AT THE STATE BANK (Promulgated together with the State Bank Governor's Decision No. 935/2004/QD-NHNN of July 23, 2004) Chapter I GENERAL PROVISIONS Article 1.- Scope of regulation This Regulation provides for the bidding for Government bonds at the State Bank. Government bonds (hereinafter called bonds for short) to be bid at the State Bank include treasury bills, foreign-currency bonds and other valuable papers, which the Finance Ministry and the State Bank jointly agree to supplement in each period. Article 2.- Interpretation of terms In this Regulation, the following terms are construed as follows: 1. Bidding for Government bonds at the State Bank (hereinafter called bidding for short) means that the State Bank acts as an agent for the Finance Ministry in issuing and making payments for bonds by the mode of wholesale to the members on the primary market through bidding. 2. Bidding with interest-rate competition means the form of bidding whereby the participating members offer different bid interest rates in order to determine their bid-winning interest rates and volumes in bidding sessions. 3. Bidding without interest-rate competition means the form of bidding whereby the participating members register volumes only without offering bid interest rates. The bid-winning volumes of the members shall be subject to the application of the bid-winning interest rates in the biddings with interest-rate competition. 4. Bonds issued in the par value form mean bonds which are sold at the prices equal to their par value, with interests to be paid periodically or in a lump sum, together with the principals upon their maturity. 5. Bonds issued in the discount form mean bonds which are sold at the price lower than their par value and paid with the amounts equal to their par value upon their maturity. 6. Ceiling interest rate means the maximum interest rate of issued bonds, which is announced by the Finance Minister for each period. Ceiling interest rate at each bidding session must be put in a sealed envelop and sent to the bond-bidding board (hereinafter called bidding board) before the opening of bids. Article 3.- Bidding principles 1. Publicity, equality among the members in interests and obligations. 2. Confidentiality of the members' bids and ceiling interest rates (if any). 3. Bid-winning units shall have the responsibility to buy bonds with the announced bid-winning volumes and interest rates. Article 4.- Bidding forms The bond bidding at a bidding session may take either of the following two forms: 1. Bidding with interest-rate competition; 2. Combination of bidding with interest-rate competition and bidding without interest-rate competition. When this form is applied, the volume of bonds bid without interest-rate competition shall not exceed 30% of the total volume of bonds planned to be issued in such bidding drive. Article 5.- Bidders 1. Credit institutions operating under the Law on Credit Institutions. 2. Insurance companies, insurance funds, investment funds, which lawfully operate in Vietnam; foreign investment funds' branches in Vietnam. 3. The State Bank, which shall participate in buying treasury bills in cases where the subjects specified in Clauses 1 and 2 of this Article fail to buy up the volume of treasury bills in each bidding session. Article 6.- Bidding modes 1. Direct bidding: Members directly put their bid registration cards into the card boxes at the State Bank’s Transaction Office or the State Bank's designated branches. 2. Online bidding: Members send their written bid registrations and receive the results via the bond-bidding computer network of the State Bank. Online bond biddings must ensure safety and confidentiality according to regulations. Article 7.- Responsibilities of the bidding boards The bidding boards set up under decisions of the State Bank Governor shall have to organize and supervise bond-bidding activities at the State Bank according to regulations. Chapter II SPECIFIC PROVISIONS Article 8.- Bidding participation conditions 1. For the participants in treasury bill biddings The subjects specified in Clause 1 and Clause 2 of Article 5 shall be considered and granted by the State Bank the certificates of recognition of treasury bill bidding participants if they fully meet the following conditions: a/ Having the legal person status, being set up or operating lawfully under current laws of Vietnam; b/ Having the legal capital of at least VND 20 billion; c/ Having VND accounts opened at the State Bank's Transaction Office or designated branches. Where the subjects applying for participation are not allowed to open accounts at the State Bank according to regulations, they must open accounts at commercial banks; d/ Having filed applications for participation in treasury bill biddings at the State Bank and registered the lists of persons authorized to sign documents pertaining to the participation in treasury bill biddings at the State Bank, made according to a set form. 2. For participants in foreign-currency bond biddings Credit institutions operating under the Credit Institutions Law shall be considered and granted by the State Bank the certificates of recognition of participants in foreign-currency bond biddings if they fully meet the following conditions: a/ Being permitted to deal in foreign exchange; b/ Having foreign-currency accounts opened at the State Bank (the Transaction Office or designated branches); c/ Having filed applications for participation in foreign-currency bond biddings at the State Bank and registered the lists of persons authorized to sign documents pertaining to the participation in treasury bill biddings at the State Bank, made according to a set form. Article 9.- Recognition of members 1. The State Bank shall consider and grant certificates of recognition of participants in biddings to the organizations which meet all conditions specified in Article 8 of this Regulation. 2. The State Bank shall examine the participation conditions of the members and withdraw the certificates of recognition of members participating in bond biddings in the following cases: a/ The members no longer satisfy all conditions specified in Article 8 of this Regulation; b/ The members being credit institutions are placed under special control. Article 9.- Bidding notification 1. Two working days before the date of organizing biddings, basing itself on the Finance Ministry (State Treasury)'s proposal for bond issuance, the State Bank shall send bidding notices by the following modes: a/ Sending bidding notices via the computer network to the members and its designated branches directly connected to the State Bank; b/ Sending by fax bidding notices to the members and its designated branches not electronically connected to the State Bank. Where members do not register for biddings for five consecutive sessions, the State Bank shall cease to send them notices on subsequent bidding sessions. The notification shall resume when these members continue registering for bidding; 2. Notification on some mass media. 3. The contents of the State Bank's notices on bond biddings shall comply with a set form. Article 11.- Bidding registration 1. On the bidding day, the members shall register for bidding according to a set form. 2. The contents to be inscribed in the members' bidding registration cards are prescribed as follows: a/ Bidding forms: - Registration form No. 03/TPCP shall apply generally to the form of bidding with interest-rate competition and the form of combination of bidding with interest-rate competition and bidding without interest-rate competition. The bidding-participating members shall fill in the appropriate sections, depending on the form of bidding they participate in. - At the sessions where bidding with interest-rate competition is combined with bidding without interest-rate competition, the members may register for bidding with interest-rate competition or bidding without interest-rate competition or for both forms of bidding. b/ Bid volumes: - The minimum bid volumes of treasury bills shall be VND 100,000,000 (one hundred million VND). The minimum bid volumes of foreign-currency bonds shall be 10,000 (ten thousand) monetary units of the issuance foreign currency. In case of combination of bidding with interest-rate competition and bidding without interest-rate competition, the bid volume of each member participating in bidding without interest-rate competition shall not exceed 30% of the volume of bonds planned to be issued. - The registered volume at each bid level and the total registered volume must be inscribed in words and figures. If there exists a disparity between words and figures, the bidding registration cards in question shall be rejected. c/ Interest rates - In case of registration for bidding with interest-rate competition, each registration card may be made for five bid interest rate levels at most. The interest rate of each bid shall be calculated in percentage per year (%/year) and may be inscribed with up to two decimals. - In case of registration for bidding without interest-rate competition, bidding registration cards shall be made for bid volumes only, not for interest rates. 3. Bidding-participating members must not make escrow deposits at the State Bank. Article 12.- Modes of sending bidding registration cards 1. For each bidding session, bidding-participating members may send a bidding registration card for every type of bond term. Before the time limit for sending bidding registration cards expires, members may alter the contents of their bidding registration cards by making new ones and cancel the old ones via the bond bidding computer network. In cases where bids are directly put into the card boxes placed at the State Bank (the State Bank's Transaction Office or designated branches), the bid consideration shall be based on the members' latest bidding registration cards. 2. Bidding registration cards shall be directly put into the card boxes placed at the State Bank or transmitted via the computer network to the State Bank. A bidding registration card must be signed by the competent person who has registered his/her signature with the State Bank, stamped and put into a sealed envelop (in case of sending of secret cards) or contain the State Bank-granted electronic signature of the member’s representative (in case of sending via the computer network). 3. A card box shall be secured with two locks the keys of which are kept by two competent officials, one each. For bidding registration cards sent via the computer network, their passwords must be known only to competent persons so as to ensure confidentiality for such cards before the opening of bids. Article 13.- Opening of bids 1. Before 13:00 hrs of the bidding day, the bidding-participating members must send their bidding registration cards to the State Bank. The bid opening start from 13:30 hrs on the bidding day to the witness of the bidding boards. 2. The professional processing unit of the State Bank (the State Bank's Transaction Office or designated branches) shall check the validity of the bidding registration cards (by two examiners who will sign every bidding registration card for certification while the head of the processing unit shall sign for supervision). Bidding registration cards and registered bid levels which are at variance with regulations shall be eliminated. After eliminating invalid bidding registration cards and registered bid levels, the State Bank’s designated branches shall transmit through the network and by fax (according to the confidentiality regime) the general bid tables for each bidding form, with interest-rate competition and without interest-rate competition, together with the members' bidding registration cards to the State Bank's Transaction Office for centralized bid consideration. The State Bank's Transaction Office shall notify the members of their eliminated bidding registration cards or registered bid levels, clearly stating their invalidity as the reasons therefor. Article 14.- Bid consideration 1. For bidding with interest-rate competition: The bid-winning volumes of bonds shall be considered and selected according to the registered bid interest rates from low to high. a/ For cases where the ceiling interest rate is set: The bid-winning interest rate shall be the highest registered bid interest rate which is not higher than the ceiling interest rate and at which the bid-winning volume of bonds does not exceed the volume of bonds planned to be issued. b/ For cases where the ceiling interest rate is not set, the bid-winning interest rate shall be the highest registered bid interest rate at which the bid-winning volume of bonds does not exceed the volume of bonds announced to be issued. Where, at the bid-winning interest rate, the total registered bid volume exceeds the volume planned to be issued, the bond volume at the bid-winning interest rate shall be allocated in direct proportion to the registered bid volumes at such interest rate, ensuring that the bid-winning bond volume must not exceed the bond volume planned to be issued. The bid-winning interest rate shall be applied to calculating the selling price of the whole bid-winning bond volume. 2. For the form of combination of bidding with interest-rate competition with bidding without interest-rate competition at a bidding session: a/ Determination of the volumes for bidding with interest-rate competition and bidding without interest-rate competition: - Where the volume of bids without interest-rate competition by the members at a bidding session is smaller than or equal to 30% of the volume of bonds planned to be issued, the volume for bidding without interest-rate competition shall be equal to the volume of bids without interest rate-competition by the members. The volume for bidding with interest-rate competition shall be equal to the volume of bonds planned to be issued minus (-) the volume for bidding without interest-rate competition. - Where the volume of bids without interest-rate competition by the members at a bidding session is bigger than 30% of the volume of bonds planned to be issued, the volume for bidding without interest-rate competition shall be equal to 30% and the volume for bidding with interest rate-competition shall be equal to 70% of the volume of bonds planned to be issued. b/ Determination of bid-winning interest rates and volumes of bonds of participating members - The bid-winning interest rates and volumes of bonds of the members participating in the bidding with interest-rate competition shall be determined under the provisions of Clause 1 of this Article. The bid-winning interest rates in the bidding with interest-rate competition shall be also applied to calculating the selling prices of bonds for the whole bid-winning volumes without interest-rate competition. - Where the total volume of bids without interest-rate competition is bigger than 30% of the volume of bonds planned to be issued, the bid-winning bond volume shall be allocated to the members in direct proportion to the registered bid volume of each member in order to ensure that the bid-winning volume in the bidding without interest-rate competition is equal to 30% of the volume planned to be issued. - At a session where bidding with interest-rate competition is combined with bidding without interest-rate competition, if the bid-winning interest rate of the bidding with interest-rate competition cannot be determined, there shall be no successful bids. 3. The bidding results must be signed for certification by the Finance Ministry's and the State Bank's competent representatives in the bidding boards. Article 15.- Determination of selling prices, periodically-paid interests and payable amounts when bonds become mature 1. For treasury bills a/ Selling treasury bills in the par value form: - The selling price of treasury bills shall be equal to their par value. - The amount to be paid for (both principal and interest thereon) of treasury bills when they become mature is calculated according to the following formula: n T = G + (G x Ls x ———) 365 in which: T: Total amount (principal and interest thereon) to be paid for treasury bills upon their maturity. G: The selling price of treasury bills. Ls: The bid-winning interest rate (calculated in percentage/365 days). n: The number of days of the treasury bill's term. b/ Selling treasury bills in the discount form - The selling price of treasury bills is determined according to the following formula: MG G = ————— Ls x n 1 + ——— 365 in which: G: The selling price of treasury bills. MG: The par value of treasury bills. Ls: The bid-winning interest rate (calculated in percentage/365 days). n: The number of days of the treasury bill's term. - The treasury bill owners shall receive payments equal to the par value of their treasury bills upon their maturity. The selling prices of, and the amounts to be paid for, treasury bills shall be rounded to the dong unit. 2. For foreign-currency bonds a/ Selling foreign-currency bonds in the par value form: - For foreign-currency bonds with their principals and interests to be paid in a lump sum upon their maturity. - The selling price of foreign-currency bonds shall be equal to 100% of their par value. - The amount to be paid for foreign-currency bonds upon their maturity is calculated according to the following formula: T = MG x (1 + Ls)n in which: T: Total amount (principal and interest) to be paid. MG: The par value of bonds. Ls: The bid-winning interest rate of bonds (calculated in percentage/year). n: The bond's term (year). - For foreign-currency bonds with their interests to be paid periodically: + The selling price of foreign-currency bonds shall be equal to 100% of their par value. + The interest to be paid periodically is calculated according to the following formula: Ls L = MG x ——- k in which: L: The interest to be paid periodically. MG: The par value of bonds. Ls: The bid-winning interest rate (%/year). k: The number of interest payments in a year. + When their bonds become mature, the bond owners shall be paid with the principals equal to the bonds' par value and the interest for the last interest-earning period. b/ Selling bonds in the discount form - The selling price of bonds is determined according to the following formula: MG G = ————— (1 + Ls)n in which: G: The selling price of bonds. MG: The par value of bonds. Ls: The bid-winning interest rate of bonds (%/year). n: The bond's term. Upon their maturity, bonds shall be paid equal to their par values. c/ The selling prices of, and the amounts (principal and interest) paid for, foreign-currency bonds upon their maturity, and to be-paid periodically interest amounts of foreign-currency bonds, which are calculated according to the above formulas, shall be rounded to two decimals of the monetary unit of the issued foreign currency. Article 16.- Notification of, and reporting on, bidding results After the bidding boards have confirmed the bidding results, the State Bank's Transaction Office shall send the reports thereon to the Finance Minister, the State Bank Governor, the State Treasury as well as the State Bank's concerned departments; concurrently fax or transmit via the computer network (if any) the bidding results to the bidding-participating members according to a set form, and announce the bidding results on some mass media. Article 17.- Payment for, and accounting of, bonds 1. Basing themselves on the State Bank's notices on bidding results, within two working days after the bidding day, the bid-winning members shall have to transmit full payments for the bonds into the State Treasury's account opened at the State Bank's Transaction Office. 2. The date of issuance of bonds shall be set to be the second working day as from the date of bidding. The State Bank shall credit to the State Treasury's account opened at the State Bank's Transaction Office or to the account requested by the State Treasury the proceeds from the sale of bonds and make entries in the bond accounts of the bid-winning members on the date the bid-winning members make full payments for the bonds. Where the bid-winning members need to have certificates, they must clearly state such in their bidding registration cards (according to a set form) so that the State Bank can notify the State Treasury thereof for grant of such certificates. 3. Where the State Bank receives no payments from the bid-winning members on the prescribed date, it shall automatically make deductions from such members' deposit accounts at the State Bank or request the banks where the bid-winning members open accounts to make deductions therefrom and transfer them to the State Treasury. If the balance on the deposit accounts of the bid-winning members is not enough for payment, the unpaid portion of the bid-winning result shall be canceled. The State Bank shall then deduct a fine equal to 5% of the canceled portion of the bid-winning volume and transfer it to the State Treasury. Where the balance of the deposit account of the fined member is zero or not enough for paying the fine of 5% of the canceled portion of the bid-winning volume, the State Bank shall continue making deductions when such account has a balance till it collects the full fine according to regulations. Article 18.- Payment of principals and interests of mature bonds 1. Payment of principals and interests of mature bonds shall be made through the State Bank of Vietnam. One working day before the date of payment of periodical interests, principals and interests for the maturity year, the Finance Ministry (the State Treasury) shall transfer the money amounts (in the currencies payable for bonds) to the State Bank's Transaction Office for payment to the bond owners. On the payment day, if the State Bank receives no money-transfer documents from the State Treasury, it shall automatically make deductions from the State Treasury's deposit account (VND or foreign-currency account) at the State Bank's Transaction Office for payment to bond owners. 2. The State Bank shall pay to bond owners periodical interests, principals and interests for the maturity year on the prescribed payment dates. Where the payment dates fall on prescribed holidays, the payment shall be made on the subsequent working day. 3. Where the State Treasury's foreign-currency deposit account does not have the types of foreign currencies in which payments must be made to foreign-currency bond owners, the State Bank shall convert the existing foreign currencies into the foreign currencies in which payments must be made at the State Bank's foreign currency-selling rate at the transaction time. If the balance of the State Treasury's foreign-currency account is zero or not enough for payment to foreign-currency bond owners, the State Bank shall sell the foreign currencies in which payments must be made to the State Treasury at the exchange rate on the interbank foreign-currency market at the time of transaction, and concurrently make deductions from the State Treasury's VND account for payment for the purchase. Chapter III ORGANIZATION OF IMPLEMENTATION Article 19.- Responsibilities of units under the State Bank 1. The State Bank's Transaction Office a/ To consider, grant and withdraw membership cards to/from the subjects participating in bond biddings; b/ To grant numerical codes and passwords for the members to conduct transactions through the computer network and signature codes for the representatives authorized by the members to participate in transactions; c/ To comply with the directions of the bidding boards regarding the notification of the biddings, to receive bidding registration cards, organize the bid consideration and notify the bond bidding results to the participating members and the State Bank's designated branches under the provisions of this Regulation; d/ To make reports on bond bidding results and send them to the State Bank Governor and the Finance Minister, and concurrently to the State Treasury, the Credit Department, the Monetary Policy Department and the Accounting-Finance Department; e/ To receive payments for the purchase of bonds from the bid-winning members and pay periodical interests, principals and interests for the maturity year to the bond owners according to regulations; f/ To apply cost-accounting to the operation of bond bidding, hand and receive bond certificates (if any) according to regulations; g/ The director of the State Bank's Transaction Office shall base himself/herself on the provisions of this Regulation to guide the process of the bond bidding operation. 2. The Credit Department a/ To assume the prime responsibility for, and coordinate with the concerned units in, implementing this Regulation; b/ To act as coordinator in organizing the research into, and development of, the bond bidding operation and submitting to the Governor supplements and amendments to the Regulation when necessary. 3. The Accounting-Finance Department To guide the regime of cost-accounting of the foreign-currency Government bond bidding operation. 4. The Banking Informatics and Technology Department To supply and guide the operation and ensure the smooth, safe and confidential operation of the computerized bond-bidding systems. 5. The State Bank's designated branches a/ To check the eligibility of the members in their respective localities, notify the State Bank's Transaction Office of those members that are ineligible for participating in the bond biddings for consideration and withdrawal of their membership cards. b/ To post up bidding notices at their headquarters and receive bidding registration cards of the members in their localities. c/ To open bids and synthesize bid cards of the bidding-participating members in the localities, then transmit them through the computer network to the State Bank's Transaction Office for bid consideration, concurrently to fax the general table of valid bidding registrations of the members, which are made according to secret codes, to the State Bank's Transaction Office. Article 20.- Amendment and supplementation The amendment and supplementation of this Regulation shall be decided by the State Bank Governor. For the State Bank Governor Deputy Governor PHUNG KHAC KE