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This decree specifies modalities of issuance of bonds of Government of Vietnam.
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) BackBack <index.html>
"Decree No.72cp Promulgating The Regulations On Issuing Bonds Of The Government"