Bản dịch văn bản 66/2004/QĐ-BTC
quyet-dinh-66-2004-qd-btc
Cơ quan ban hành: Bộ Tài chính
Ngày ban hành: 2004-08-11

DECISION No. 66/2004/QD-BTC OF AUGUST 11, 2004 PROMULGATING THE GUIDING REGULATION ON ORDER AND PROCEDURES FOR ISSUING GOVERNMENT BONDS, GOVERNMENT-UNDERWRITTEN BONDS AND LOCAL ADMINISTRATIONS’ BONDS THE MINISTER OF FINANCE 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 administrations' bonds; Pursuant to the Government's Decree No. 60/2003/ND-CP of June 6, 2003 detailing and guiding the implementation of the State Budget Law; Pursuant to the Government's Decree No. 77/2003/ND-CP of July 1, 2003 defining the functions, tasks, powers and organizational structure of the Finance Ministry; At the proposal of the director of the Department for Finance of Banks and Financial Institutions, DECIDES: Article 1.- To promulgate together with this Decision the guiding Regulation on the order and procedures for issuing Government bonds, Government-underwritten bonds and local administrations' bonds. Article 2.- This Decision takes effect 15 days after its publication in the Official Gazette. Article 3.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies, the presidents of the People's Committees of the provinces or centrally-run cities, the general directors (directors) of the bond-issuing organizations and the heads of the concerned units shall have to implement this Decision. For the Finance Minister Vice Minister LE THI BANG TAM GUIDING REGULATION ON ORDER AND PROCEDURES FOR ISSUING GOVERNMENT BONDS, GOVERNMENT-UNDERWRITTEN BONDS AND LOCAL ADMINISTRATIONS' BONDS (Promulgated together with the Finance Minister's Decision No. 66/2004/QD-BTC of August 11, 2004) I. GENERAL PROVISIONS Article 1.- This Regulation guides the order for working out issuance plans and schemes, deciding on the issuance, administering interest rates and matters related to the organization of issuance of Government bonds, Government-underwritten bonds and local administrations' bonds (collectively called bonds). Article 2.- Bonds are issued by modes of bidding through the State Bank and the Securities Trading Center (the Stock Exchange); issuance underwriting; issuance agency and direct issuance through the State Treasury system according to the provisions of the Government's Decree No. 141/2003/ND-CP of November 20, 2003 and the Finance Ministry's Circulars guiding the implementation thereof. Article 3.- The issuance of foreign-currency bonds within the territory of the Socialist Republic of Vietnam shall be effected only in special cases, aiming to mobilize capital for works and projects subject to the central budget's balance on the basis of schemes proposed by the Finance Ministry and decided by the Prime Minister. The Finance Minister shall personally decide on foreign currency, volume, par value, term, interest rate and location for each foreign-currency bond issuance drive and assign the State Treasury for organization of implementation. Article 4.- The Finance Ministry shall uniformly manage the bond issuance, supervise the organization of bond issuance, use and repayment of borrowed capital by bond-issuing organizations. Article 5.- The presidents of the provincial-level People's Committees, the general directors (directors) of the issuing organizations and the heads of the concerned units have the responsibility to organize the bond issuance according to the appraised plans and schemes; use the borrowed capital for right purposes and in a thrifty and efficient manner; arrange sources for paying bond principals and interests in full and on time to bond owners and observe the current regulations on management of bond issuance. II. BOND ISSUANCE PLANS Article 6.- Working out bond issuance plans 1. For plans on issuance of Treasury bills, Treasury bonds, central works' bonds and foreign-currency bonds: 1.1. The Finance Ministry shall assume the prime responsibility for working out plans on issuance and settlement of bonds of all types for incorporation in the State budget estimates to be reported to the Government and submitted to the National Assembly for approval. 1.2. Basing himself/herself on the capital mobilization targets already decided by the National Assembly, the Finance Minister shall assign the task of mobilizing capital from issuance of bills and bonds to the State Treasury. The State Treasury shall assume the prime responsibility for, and coordinate with the State Budget Department, the Department for Finance of Banks and Financial Institutions in, working out monthly plans on issuance of bonds categorized according to their types, terms, currencies and issuance modes, then reporting them to the Finance Minister for approval. 2. For plans on issuance of investment bonds and Government-underwritten bonds: 2.1. Before December 31 each year, basing themselves on the State's development investment credit capital plans and capital use demands of projects, the Development Assistance Fund, financial and credit institutions which issue investment bonds and enterprises which issue Government-underwritten bonds shall work out plans on bond issuance for the subsequent year, then report them to the Finance Ministry, covering: - Total capital to be mobilized in the year; - Capital volume expected to be mobilized in each month, detailed according to term and issuance mode. 2.2. In the course of implementation, if their issuance plans are changed, the issuing organizations shall have to report thereon to the Finance Ministry. 3. For plans on issuance of local administrations' bonds: Before December 31 each year, the provincial-level People's Committees which wish to issue bonds shall work out plans on issuance of local administrations' bonds in the year for sending to the Finance Ministry. Such issuance plans must explain in detail capital demands, use purposes of mobilized capital and estimated issuance time in the plan year. Article 7.- Disclosure of bond issuance plans 1. The State Treasury, the Development Assistance Fund, the provincial-level People's Committees, financial and credit institutions and enterprises shall publicly disclose information on the approved bond issuance plans or annual reports specified by months according to each type of bond, bond term and issuance mode. 2. Information-disclosing modes: 2.1. Disclosure on the mass media, publications, websites of issuing organizations; 2.2. Disclosure of information through information-disclosing means of the Securities Trading Center (the Stock Exchange). Issuing organizations are exempt from the charge for information disclosure through the Securities Trading Center (the Stock Exchange). III. ORDER AND PROCEDURES FOR BOND ISSUANCE Article 8.- For issuance of Treasury bills, Treasury bonds, central works' bonds and foreign-currency bonds: 1. The State Treasury organizes the issuance of Treasury bills, Treasury bonds, central works' bonds and foreign-currency bonds to satisfy the spending demands of the State budget as well as important projects and works within the scope of the State budget's balance. 2. Basing itself on the total capital from bond issuance in the year and the issuance plans already approved by the Finance Minister, the State Treasury shall take initiative in organizing the bond issuance according to the spending demands and schedule of the State budget. The bond issuance by mode of retail through the State Treasury system shall be decided by the Finance Minister for each issuance drive. Article 9.- Issuance of investment bonds 1. The Development Assistance Fund, financial and credit institutions may take initiative in organizing the issuance of investment bonds to mobilize capital to meet the State's development investment credit capital demand under annual plans and bond issuance plans already reported to the Finance Ministry. 2. The capital mobilization must conform to the borrowed capital disbursement tempo, sources for debt recovery and ensure the principle of minimizing the expenses for capital mobilization. Capital shall not be mobilized when there is no demand therefor or current capital sources still satisfy the projects' capital borrowing demands. Article 10.- Issuance of Government-underwritten bonds 1. Conditions for bond issuance: 1.1. Issuing organizations are enterprises designated by the Prime Minister to act as investors and to issue bonds to mobilize capital for their projects; 1.2. The investment projects have already gone through the law-prescribed investment procedures; 1.3. The issuance is eligible for settlement underwriting by the Finance Ministry, or by the State-run financial or credit institutions authorized by the Finance Ministry. The maximum underwriting charge rate is 0.05%/year on the actually underwritten money amount annually. The remainder of the settlement underwriting charge, after being used to pay the underwriting authorization charge (if any), shall be remitted into the State budget. 2. When wishing to issue bonds, an enterprise shall send to the Finance Ministry the following documents: 2.1. An application for bond issuance, enclosed with the issuance plan clearly stating the total capital amount expected to be mobilized; the term and interest rate; the plan on repayment of borrowed capital upon maturity; sources for repayment; measures to organize bond issuance and settlement; 2.2. Written permit for the enterprise to issue bonds to mobilize capital for its projects; 2.3. Investment project(s) approved by competent authority; 2.4. Written request for the Finance Ministry's settlement underwriting; 2.5. Other relevant documents. 3. Within 30 working days after receiving complete, lawful and valid dossiers, the Finance Ministry shall approve them in writing for enterprises to issue bonds. Article 11.- Issuance of local administrations' bonds 1. Conditions for bond issuance: 1.1. Projects or works using revenue sources from bond issuance must be on the investment portfolio under the five-year investment plans already approved by the provincial-level People’s Councils. 1.2. There exist bond issuance plans approved by the provincial-level People's Councils. A bond issuance plan must have the following principal contents: a/ The name of the investment project using bond issuance source; b/ The investment decision of the competent authority; c/ The project's socio-economic efficiency; d/ The total investment capital which needs to be mobilized and the provincial budget's expected sources for ensuring the debt repayment; e/ The volume to be mobilized; the bond term, interest rate and plan on debt-repayment upon maturity; f/ The provincial budget's balance in the reporting year and the budget's debt-repaying capability for the subsequent years. g/ Other documents clearly explaining the mobilization plan. 1.3. The debit balance of mobilized capital at the time of submitting the plans and the debit balance when the bond issuance is approved must not exceed 30% of the annual domestic capital construction investment capital of provincial budgets, excluding the targeted additional investment capital not of stable and regular nature from the central budget to provincial budgets. Particularly for Hanoi city and Ho Chi Minh city, the capital mobilization limits shall comply with the provisions of the Government's Decrees No. 123/2004/ND-CP and No. 124/2004/ND-CP of May 18, 2004 prescribing a number of particular financial and budgetary mechanisms applicable to Hanoi city and Ho Chi Minh city. 2. When wishing to issue bonds, the provincial-level People's Committees shall send to the Finance Ministry the following documents: 2.1. Written requests for bond issuance, clearly stating the total capital amount to be mobilized; the bond term and interest rates; estimated issuance time; measures to organize the bond issuance and settlement. 2.2. Resolutions of the provincial-level People's Councils approving the bond issuance, enclosed with the issuance plans. 2.3. Other relevant documents. 3. Within 30 days after receiving the complete, lawful and valid dossiers, the Finance Ministry shall examine them and make written approvals thereof for the provincial-level People's Committees to organize the issuance. 4. Basing themselves on the Finance Ministry's approvals, the provincial-level People's Committees shall issue decisions authorizing the State Treasury or the financial or credit institutions in their respective localities to perform the bond issuance according to the current regulations. Article 12.- Suspension of bond issuance 1. The Finance Ministry shall suspend the bond issuance in the following cases: 1.1. Issuing organizations fail to issue bonds according to the bond issuance plans already approved by the Finance Ministry or fail to comply with the current regulations on bond issuance. 1.2. Interest rates of issued bonds exceed the ceiling interest rate or interest rate amplitude announced by the Finance Ministry. 1.3. Mobilization level exceeds the permitted limits or the total investment capital of projects or works using revenue source from bond issuance and the bond issuance targets already decided by the Government or the Prime Minister. 2. Upon receiving the Finance Ministry's notices, the presidents of the provincial-level People's Committees, the general directors (directors) of the issuing organizations shall promptly suspend the bond issuance. For local administrations' bonds, when suspending the issuance thereof the Finance Ministry shall concurrently report such to the Prime Minister and propose handling measures to the Prime Minister for decision. IV. ADMINISTERING INTEREST RATES AND BOND CERTIFICATES Article 13.- Administering bond interest rates 1. The Finance Ministry shall uniformly administer the interest rates of bonds of all types issued according to the provisions of this Regulation. 2. The mechanism of administering interest rates shall be applied as follows: 2.1. Periodically, basing himself/herself on the situation of the financial and monetary markets, the Finance Minister shall notify the ceiling issuance interest rate of Government bonds and Government-underwritten bonds to the general directors (directors) of issuing organizations; notify the issuance interest rate amplitude limits of local administrations' bonds as compared to Government bonds of the same term to the presidents of the provincial-level People's Committees for use as basis for organizing the bond issuance. 2.2. The presidents of the provincial-level People's Committees, the general directors (directors) of issuing organizations shall administer the bidding interest rates, interest rates for issuance by underwriting and issuance agency modes within the ceiling interest rate and permitted amplitude. Interest rates of bonds issued through the State Treasury system by retail mode shall be decided by the Finance Minister for each issuance drive. 2.3. Interest rates shall be announced by the Finance Ministry for the mode of annual interest post-payment. In cases where the mode of interest payment is changed, the presidents of the provincial-level People's Committees, the general directors (directors) of issuing organizations shall have to re-determine bond interest rates to make them appropriate, concretely: a/ For bonds with annually pre-paid interests: Annually post-paid interest rates shall be converted into annually pre-paid interest rates according to the following formula: Ls Lt = ————— (1) (1 + Ls) In which: Lt: Annually pre-paid interest rate (%/year) Ls: Annually post-paid interest rate (%/year) b/ For bonds with periodically post-paid interests: - Annually post-paid interest rates shall be converted into periodically post-paid interest rates according to the following formula: (1+ Ls) = [ 1 + Lsk ] k (2) In which: Ls: Annually post-paid interest rate (%/year) Lsk: Periodically post-paid interest rate (%/period) k: Number of interest payments in a year - The ceiling interest rate annually calculated for the bond issuance shall be determined according to the following formula: Lsn = Lsk x k (3) In which: Lsn: Annually post-paid interest rate (%/year) Lsk: Periodically post-paid interest rate (%/period) k: Number of interest payments in a year c/ For bonds with periodically pre-paid interests: - Annually post-paid interest rates shall be converted into periodically post-paid interest rates according to formula (2) - Periodically post-paid interest rates shall be converted into periodically pre-paid interest rates according to the following formula: Lsk Ltk = ———— (4) (1 + Lsk) In which: Ltk: Periodically pre-paid interest rate (%/period) Lsk: Periodically post-paid interest rate (%/period) - The ceiling interest rate annually calculated for the bond issuance shall be determined according to the following formula: Ltn = Ltk x k (5) In which: Ltn: Annually pre-paid interest rate (%/year) Ltk: Periodically pre-paid interest rate (%/period) k: Number of interest payments in a year (See the enclosed specific examples on the calculation and determination of interest rates for bond issuance) 2.4. The Finance Ministry's interest rate notices shall be managed and used according to the regulations on management of "confidential" documents. Article 14.- Bond certificates 1. Bond certificates shall be printed, managed and distributed by issuing organizations to bond-purchasing organizations and individuals. 2. Bond certificates may be either registered or bearer but must have the following principal contents: 2.1. Names of bond-issuing organizations, concretely: a/ The State Treasury for types of bonds issued by the State Treasury. Particularly for central works' bonds and foreign-currency bonds, the issuing organization shall be the Finance Ministry. b/ The Development Assistance Fund, financial and credit institutions for investment bonds. c/ The provincial-level People's Committees for local administrations' bonds; d/ Enterprises for Government-underwritten bonds; 2.2. Par values and serial numbers. 2.3. Bond terms and interest rates. 2.4. Names of organizations or individuals owning bonds (for registered bonds). 2.5. Date of issuance and date of maturity for payment. 2.6. Signatures of heads of issuing organizations. 3. In cases where bonds are issued in form of book-entry, issuing organizations or authorized units shall open books for monitoring the bond purchase by each organization or individual. Bond purchasers shall be granted bond ownership certificates which are clearly inscribed with information on names of issuing organizations; par values; bond terms and interest rates; names of organizations or individuals owning bonds; date of issuance and date of maturity for payment; signatures of heads of issuing organizations. V. SOURCES FOR DEBT REPAYMENT AND BOND ISSUANCE CHARGE Article 15.- The central budget shall have to allocate sources for payment of principals and interests of Treasury bills, Treasury bonds, central works' bonds and foreign-currency bonds; while the local budgets shall balance sources for payment of local administrations' bonds; the Development Assistance Fund, financial and credit institutions shall allocate sources for payment of principals and interests of investment bonds; enterprises shall have to allocate sources for payment of principals and interests of Government-underwritten bonds. Basing themselves on bond terms and time for interest payment, issuing organizations or authorized organizations shall have to promptly pay principals and interests to bond owners upon bond maturity. Article 16.- Bond issuance charge, bond principal and interest payment expenses shall be accounted into the State budget's expenditures (the central budget and local budgets), capital mobilization expenditure or settled values of works according to the prescribed regime. Article 17.- The settlement of bond bidding, issuance underwriting and issuance agency charges; expenses for bond principal and interest payment for types of bond issued by the State Treasury to mobilize capital for the central budget shall be effected according the following mechanism: 1. The State Treasury shall advance its treasure remainder for payment of arising charges and expenses. At the end of each quarter, the State Treasury shall sum up the paid charges and expenses and send the sum-up report to the Finance Ministry (the State Budget Department and the Department for Finance of Banks and Financial Institutions) for carrying out the procedures for refunding advanced expenses to the State Treasury. 2. The settlement of bidding charges, Treasury bills and foreign-currency bonds through the State Bank shall be effected according to the financial management mechanism prescribed by the Finance Ministry for the State Bank of Vietnam. VI. BOOK-KEEPING, ACCOUNTING, REPORTING AND FINAL SETTLEMENT Article 18.- Book-keeping, accounting Issuing organizations and concerned units shall have to organize the book-keeping, accounting work according to the provisions of the State Budget Law, the Accounting Law and the State's current accounting regime. Article 19.- Reporting and final settlement 1. Before the 5 th day of each month, basing themselves on the bond issuance and settlement results, issuing organizations shall report to the Finance Ministry (through the Department for Finance of Banks and Financial Institutions) on the situation of bond issuance and settlement in the last month and projected plan on bond issuance for the subsequent month. 2. At the end of each issuance drive, the issuing organizations shall report to the Finance Ministry on the results thereof. 3. Annually, issuing organizations shall have to make final settlement of revenue amounts from the bond issuance in the year, paid principal and interest amounts and expenses related to the bond issuance. VII. RESPONSIBILITIES OF AGENCIES Article 20.- Responsibilities of the Finance Ministry 1. To work out plans on issuance and settlement of Treasury bills, Treasury bonds, central works' bonds and foreign-currency bonds for being incorporated in the State budget estimates for submission by the Government to the National Assembly for approval. To organize the bond issuance and settlement according to the estimates already approved by the National Assembly. 2. To evaluate and approve issuance schemes and plans for investment bonds, Government-underwritten bonds and local administrations' bonds. To supervise the bond issuance and bond principal and interest payment by subjects and bond-issuing organizations. 3. To administer interest rates for issuance of Treasury bills, Treasury bonds, central works' bonds and foreign-currency bonds. To decide on the ceiling interest rate of investment bonds and Government-underwritten bonds; to decide on interest rate amplitude limits of local administra-tions' bonds as compared to the Government bonds. 4. To uniformly manage the organization of bond biddings, listing and trading on the central securities market. Article 21.- Responsibilities of the provincial-level People's Councils and Committees 1. The provincial-level People's Councils: 1.1. To consider and adopt plans on bond issuance and plans on repayment of borrowed capital, submitted by the provincial-level People's Committees; 1.2. To balance and allocate capital sources for payment of bond principals and interests upon maturity; 1.3. To supervise the organization of issuance and the use of capital mobilized from the bond issuance and the repayment of borrowed capital by the provincial-level People's Committees. 2. The provincial-level People's Committees: 2.1. To work out bond issuance plans and plans on repayment of borrowed capital, then submit them to the provincial-level People's Councils; 2.2. To organize the issuance of local administrations' bonds according to the plans evaluated by the Finance Ministry; 2.3. To inspect and supervise the use and recovery of borrowed capital from the issuance of local administrations' bonds; 2.4. To ensure the source for settlement of bonds upon their maturity. Article 22.- Responsibilities of the Development Assistance Fund, financial and credit institutions and bond-issuing enterprises 1. To work out issuance schemes and implementation plans suitable to the capital use demands. 2. To organize the bond issuance and settlement upon maturity. 3. To manage and use capital for right purposes and with efficiency. 4. To report to the Finance Ministry on bond issuance and settlement results. VIII. ORGANIZATION OF IMPLEMENTATION Article 23.- Any problems arising in the course of implementation should be promptly reported by the issuing organizations and concerned units to the Finance Ministry for study and specific guidance. For the Finance Minister Vice Minister LE THI BANG TAM Examples on the methods of determining the ceiling interest rates for the bond issuance 1. The ceiling interest rate announced by the Finance Ministry for bonds of 5-year term with "annually post-paid interests" is 8%/year. 2. Cases which may occur in realities: 2.1. Case 1: - Issuing organizations decide to pay bond interests by mode of "annual pre-payment." - They shall convert the annually post-paid interest rates into annually pre-paid interest rates: + Formula: Ls Lt = ———— (1+ Ls) In which: Lt: Annually pre-paid interest rate (%/year) Ls: Annually post-paid interest rate (%/year) + Replacing signs with numerals, we obtain the following result: 8% Lt = ———— = 7.41% (1+8%) + So, the ceiling interest rate for the issuance of bonds with annually pre-paid interests shall be 7.41%/year. 2.2. Case 2: - Issuing organizations decide to pay bond interests by mode of "biannual post-payment." (two interest payment times a year). - They shall convert annually post-paid interest rates into periodically post-paid interest rates: + Formula: (1+ Ls) = [ 1 + Lsk ] k In which: Ls: Annually post-paid interest rate (%/year) Lsk: Periodically post-paid interest rate (%/period) k: The number of interest payments in a year + Replacing signs with numerals, we obtain the following result: (1+ 8%) = [ 1 + Lsk ] 2 After the calculation, the result shall be: Lsk = 3.92%/6 months + So, the ceiling interest rate for the issuance of bonds by mode of biannual interest post-payment shall be 3.92% x 2 = 7.84%/year. 2.3. Case 3: - Issuing organizations decide to pay bond interests by mode of "biannual pre-payment" (two interest payments in a year). - They shall convert annual post-payment interest rates into periodical post-paid interest rate: After the calculation similar to that applicable to case 2 is made, the periodically post-paid interest rate shall be determined to be 3.92%/6 months. - They shall convert periodically post-paid interest rates into periodically pre-paid interest rates + Formula: Lsk Ltk = ————— (1 + Lsk) In which: Lt: Periodically pre-paid interest rate (%/period) Ls: Periodically post-paid interest rate (%/period) + Replacing signs with numerals, we obtain the following result: 3.92% Ltk = ————— = 3.77%/6 months (1 + 3.92%) + So, the ceiling interest rate for the issuance of bonds by mode of "biannual pre-payment" shall be 3.77% x 2 = 7.54%/year.-