Chủ đề: No. 66-2004-QD-BTC - REGULATIONS ON GOVERNMENT BONDS

DECISION
ISSUING
REGULATIONS ON ORDER AND PROCEDURES FOR ISSUANCE OF
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 20 November 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 6 June 2003 detailing and guiding
the implementation of the State Budget Law;
Pursuant to the Government's Decree No. 77- 2003-ND-CP of 1 July 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 Governmentattached
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.

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 11 August 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 20 November 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, cove ring:
- 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:
2.2. 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 therefore 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
18 May 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 an? 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 10caCbudgets), 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 5th 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 o-n 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 supervi se 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 administrations' 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