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Decree No.72cp Promulgating The Regulations On Issuing Bonds Of The Government

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					    Legal document: 72/CP

    * */Date:/* 07/26/94
    * */Number:/*72/CP
    * */Name of Document:/* Decree No.72/cp Promulgating The Regulations
      On Issuing Bonds Of The Government

The Government                   Socialist Republic of Vietnam
      No.72/CP                  Independence - Freedom - Happiness

      ---------------------
                                                                     Hanoi,26
July 1994.


                        DECREE OF THE GOVERNMENT
      ON THE PROMULGATION OF THE REGULATIONS
         ON ISSUING BONDS OF THE GOVERNMENT

                        The Government

Pursuant to the Law on the Organization of the Government dated 30
September 1992. At the request of the Minister of Finance

                              DECREES

Article 1 :

To promulgate in attachment to this Decree the Regulations on issuing
bonds of the Government.

Article 2 :

This Decree shall go into effect from the signing date. The Minister
of Finance will be responsible for providing necessary guidance for
implementation of the above mentioned regulations.

Article 3 :

The Ministers, the heads of ministry ranking bodies and governmental
offices, the chairmen of people's committees of the cities and
provinces under the central authority shall be responsible for the
implementation of this Decree.


For the Government
Deputy Prime Minister

PHAN VAN KHAI
(Signed)
The Government           Socialist Republic of Vietnam
                      Independence - Freedom - Happiness
                          ----------------------------


        REGULATIONS ON ISSUING BONDS OF THE GOVERNMENT
       (Promulgated in attachment to Decree No.72/CP
             dated 26 July 1994 of the Government)

Article 1 :

Bond of the Government (hereafter referred to as bond(s)) is a kind
of loan certificate of the Government with some term, monetary value
and interest, issued by the Ministry of Finance.

Article 2 :

There are two types of bond : registered bond and bearer one, which
shall be issued in different forms as follows:
1. Treasury bill : refers to the short-term (within 1 year) bond.
2. Treasury bond : refers to the long-term (over 1 year) bond.
3. Construction bond : refers to the long-term bond, issued in order
to get loan capital to each concrete project according to the state
plan for investment.

Article 3 :

The bonds are issued and settled in Vietnamese currency (Dong).
In case the payment for bonds is in gold or foreign currencies, it
will be converted into Vietnamese Dong by the issuing body.

Article 4 :

The buyer shall have a right to select suitable kinds of bonds with
unlimited quantity. The bonds can be circulated in the stock market,
transferred, inherited or used as a pawn , a mortgage in credit
relations.
It is not allowed to use bonds instead of money in circulation and
tax payment.

Article 5 :

The Government ensures a sufficient and timely payment for both net
value and the interest of bonds to the owner.

Article 6 :

The interest rate of bonds is a guarantee for the buyers to enjoy the
issue interest plus (+) cost variation index.
The Ministry of Finance shall , after consulting the state bank,
stipulate the following interest rates :
a) Fixed rate for full term of issue
b) Fixed rate for each year of the term of issue.
c) Guiding rate in bidding for the issue interest rate.

Article 7 :
Objects to purchase bond are the followings :
a) Vietnamese, overseas Vietnamese; foreigners who are working and
living in Vietnam.
b) Vietnamese business enterprises in all fields and sector of
economy, including commercial banks, credit organizations, financial
companies, insurance companies , insurance funds, investment funds
etc.
c) Associations and mass organizations.
d) Enterprises with foreign investment capital, operating in
compliance with the Law on Foreign Investment in Vietnam and the
Ordinance on banking shall also be entitled to purchase bonds after
having agreement of the Ministry of Finance.

Article 8 :

The Treasury bonds and construction bonds shall be issued in series.
The Ministry of Finance shall decide the value, interest rate and
the quantity of each type of bond to be issued as well as the
regulations on bond settlement (net value and interest ) for each
series. The Ministry shall proclaim detailed regulations over the mass
 media before issuing each series.

Article 9 :

The bonds mentioned in Article 8 shall be issued in some ways as
follows :
a) Directly through the state treasuries.
b) Through the agents - which are financial brokerage organizations
such as Commercial Banks, Financial Companies, Insurance companies
etc. The agents will enjoy some issue bonus, stipulated by the
Ministry of Finance.
c) In the form of an auction ( a tender).

The Ministry of Finance shall after consulting the State Bank , set
forth the regulations on the participation and the bond auction.

Article 10 :

The bonds mentioned in Article 8 shall be settled by the state
treasuries when the term of bonds becomes due. In case the bond
holder does not receive the due payment , besides the reservation of
net value and interest for the issue term, he or she will enjoy an
interest rate equal to that of free - term savings, counting from
the due date.

Article 11 :

The ownership transfer or registered bonds that mentioned   in Article
8 shall be undertaken in the state treasuries.

Article 12 :

The owners of bonds mentioned in Article 8 can preserve their bonds in
the state treasuries or banks, provided that they pay a fee for bond
custody as stipulated by the Ministry of Finance.

Article 13 :
The revenue from bonds mentioned in Article 8 shall be collected to
the State budget to cover the expenditure for investment and
economic development , targeted and planned by the Government . The
receipts on construction bonds must only be invested to the
approved by the Government projects.

Article 14 :

The Ministry of Finance shall issue   the treasury bills ( short -
term bonds) through the State Bank.

After having an agreement with the Ministry of Finance , the State
Bank shall promulgated detailed documents on selling the treasury
bills and managing the bill market.
The State Bank shall re-pay the treasury bills as soon as the term
becomes due.

Article 15 :

Source of repayment for bonds (initial deposit and interest) and the
expenses of bond issue and settlement is the State budget.

Article 16 :

The construction bond dedicated to a concrete project (as mentioned
in point 3, Article 2 of this regulations) shall be issued with the
following conditions :
1) Having investment project, approved by the competent bodies to
ensure the reimbursement of invested capital and due payment of
initial loan and interest.
2) Having application for bond issue and in attachment to it the
proposed alternative for issuing , a plan for utilization of loan
capital and debt payment (initial loan and interest).
3) Having a body to be in charge for project management , capital
utilization and debt payment , approved by the Ministry of Finance.

Article 17 :

The Ministry of Finance (central budget) shall be responsible for
guaranty of the bonds, dedicated to the projects under central
authority. The people's committees of cities and provinces (local
budget) shall be responsible for guaranty of the bonds , dedicated
to the projects under local authority. The people's committees of
cities and provinces (local budget) shall be responsible for guaranty
of the bonds, dedicated to the projects under local authority.

Article 18 :

The Ministry of Finance shall be responsible for :
1. Drawing up annual plan for issuing and paying bonds and submit it
to the Government 2. Managing the utilization of resources ,
mobilized by bonds issue in a proper and effective way.
3. Stipulating the agent bonus (point b. Article 9) and the fee for
bonds custody (Article 12).
4. Managing bonds printing, issuing and settling in a sole way,
conducting bond accounting in compliance with the State rules ,
coordinating with the Ministries in charge , city and provincial
people's committee to issue the construction bonds.
5. Cooperating with the State Bank to issue the treasury bills ,
to set up the bill market and deal with all related problems.

Article 19 :

Any action of making spurious bonds will be settled in accordance
with the Laws. The Government shall not bear responsibility for the
issued bonds in case of damage or loss. As regards the registered
bond if the holder is able to prove his or her ownership and the bond
is not used for wrong purposes , the holder will receive repayment
in the State treasuries as soon as the term becomes due.

For the Government
Deputy Prime Minister
PHAN VAN KHAI
(Signed)




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Description: This decree specifies modalities of issuance of bonds of Government of Vietnam.