Thông tư 107/2020/TT-BTC hướng dẫn giao dịch mua lại có kỳ hạn trái phiếu Chính phủ

CIRCULAR

GUIDELINES ON TERM REPURCHASE OF GOVERNMENT BONDS USING TEMPORARILY IDLE STATE FUNDS OF STATE TREASURY

Pursuant to Law on State Budget dated June 25, 2015;

Pursuant to the Law on Securities dated November 26, 2019;

Pursuant to Decree No. 24/2016/ND-CP dated April 5, 2016 of the Government on management of state funding;

Pursuant to Decree No. 95/2018/ND-CP dated June 30, 2018 of the Government on issuance, registration, depositing, listing and trading of Government debt instrument on securities market;

Pursuant to Decree No. 87/2017/ND-CP dated July 26, 2017 of the Government on functions, tasks, powers, and organizational structure of the Ministry of Finance;

At request of General Director of State Treasury;

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Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular prescribes term repurchase of government bonds from temporarily idle state funds in Vietnam Dong (VND) of State Treasury.

Article 2. Regulated entities

1. State Treasury.

2. Stock Exchange.

3. Vietnam Securities Depository and Clearing Corporation (VSDC).

4. Financial institutions eligible for making term repurchase of government bonds with the State Treasury.

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Article 3. Term interpretation

Apart from definitions under Circular No. 30/2019/TT-BTC dated May 28, 2019 of Ministry of Finance guiding issuance, registration, depositing, listing and trading of Government debt instrument, Government-secured bonds issued by policy banks and local government bonds (hereinafter referred to as “Circular No. 30/2019/TT-BTC”), in this Circular, the following terms are construed as follows:

1. “term repurchase of government bond” refers to repurchase specified under Point b Clause 1 Article 13 of Circular No. 30/2019/TT-BTC. The State Treasury shall act as the buyer in the first trade and the seller in the second trade; the State Treasury shall employ temporarily idle state funds to purchase and receive government bonds from the seller while making commitment for repurchase and transfer of ownership of the government bonds to the seller after a definite period of time at a definite price.

2. “repurchase term of government bonds” refers to number of days starting from payment date of the first trade to payment date of second trade.

3. “payment date of the first trade” (purchase date of government bonds) refers to the date on which ownership of government bonds is transferred from security depository accounts of financial institutions to security depository accounts of the State Treasury opened at the VSDC and payment for the first government bond trade shall be transferred by the State Treasury to deposit accounts in VND of financial institutions opened at Transaction Office of State Bank of Vietnam.

4. “payment date of the second trade” (sale date of government bonds) refers to the date on which ownership of government bonds is transferred from security depository accounts of the State Treasury to security depository accounts of financial institutions opened at the VSDC and payment for the second government bond trade shall be transferred by financial institutions to deposit accounts in VND of the State Treasury opened at Transaction Office of State Bank of Vietnam.

5. “remaining term of government bonds” refers to remaining time (by day) from the date of organizing term repurchase of government bonds (T date) to maturity date of government bonds.

6. “final registration date of subsequent interest payment period of government bonds” refers to the date on which VSDC identifies list of owners of government bonds for payment of interest and principal of government bonds.

7. “price including nominal interest of government bonds” refers to price of government bonds calculated on payment date of the first trade which already includes nominal interest (if any).

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9. “bond trade eligible for right transfer" refers to trade whose payment date occurs before or on the final registration date for bond interest of the current interest payment period.

10. “bond trade ineligible for right transfer" refers to trade whose payment date occurs after the final registration date for bond interest of the current interest payment period.

Article 4. Use quota of temporarily idle state funds for term repurchase of government bonds

1. Use quota of temporarily idle state funds for term repurchase of government bonds shall conform to Clause 5 Article 1 of Circular No. 64/2019/TT-BTC dated September 16, 2019 of Ministry of Finance on amendment to Circular No. 314/2016/TT-BTC dated November 28, 2016 of Ministry of Finance on elaborating to Decree No. 24/2016/ND-CP dated April 5, 2016 of the Government.

2. On a monthly basis, within 5 working days from the date on which Ministry of Finance approves use quota of temporarily idle state funds for term repurchase of government bonds, the State Treasury shall inform total quota on term repurchase of government bonds in the quarter on website of the State Treasury.

Article 5. Eligibility for government bonds to be approved by the State Treasury in trade

Government bonds shall be approved by the State Treasury for term repurchase of government bonds when:

1. The government bonds are posted publicly at the Stock Exchange with remaining term no more than a year.

2. The government bonds are legally owned by the seller and can be transferred; are not bound to relationships in secure transactions during the period of term repurchase, starting from the payment date of the first trade.

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1. Repurchase term of government bonds of the State Treasury includes: 7-day term, 41-day term, 21-day term, 1-month term, 2-month term, and 3-month term.

2. Assign the State Treasury to rely on market situations to decide on specific term of repurchase for each trade satisfactory to state fund operation solutions approved by Ministry of Finance on a quarterly basis.

Article 7. Form of trade and system for implementing term repurchase of government bonds

1. Form of trade: The State Treasury shall perform term repurchase of government bonds in form of optional electronic agreement to ensure selection of trade partners complies with the principle of bidding for interest of term repurchase of government bonds; methods of determining interest of term repurchase of government bonds shall be multivalent satisfactory to Article 16 and Article 17 of Circular No. 30/2019/TT-BTC.

2. System for implementing trade: Term repurchase of government bonds of the State Treasury shall be implemented on system for trading debt instrument at the Stock Exchange.

Article 8. Partners in term repurchase of government bonds and outstanding debt quota of each partner

1. The State Treasury shall select financial institutions satisfying eligibility below as partners for term repurchase of government bonds:

a) Included in list of financial institutions classified by safety level provided by the State Bank of Vietnam for Ministry of Finance (the State Treasury) on an annual basis according to Clause 3 Article 14 of Decree No. 24/2016/ND-CP.

b) Currently are trading members on debt instrument trading market at the Stock Exchange.

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2. Outstanding debt quota of each partner:

On a quarterly basis, based on use quota of temporarily idle state funds for term repurchase of government bonds approved by Ministry of Finance, the State Treasury shall verify and inform outstanding debt quota of the quarter in writing for each financial instrument within 5 working days from the date which Ministry of Finance issues approval.

Article 9. Trade contract

1. Term repurchase of government bonds between the State Treasury and financial institutions shall be performed under contracts, including: framework contracts and contract annexes.

2. Within 3 working days from the date on which lists of financial institutions classified by safety level provided by the State Bank of Vietnam according to Clause 3 Article 14 of Decree No. 24/2016/ND-CP are received, the State Treasury shall notify each financial institution satisfying eligibility under Clause 1 Article 8 hereof in writing; then organize signing of framework contracts with financial institutions that agree to trade with the State Treasury in order to finish within 10 working days from the date on which the State Treasury sends the notice.

In case the State Bank of Vietnam issues notice on revision to list of financial institutions classified by safety level, within 3 working days from the date on which written revision notice of the State Bank is received, the State Treasury shall inform each financial institution added or removed from the list in writing.

In case added financial institutions agree to trade with the State Treasury, the State Treasury shall organize signing of framework contracts with financial institutions and finish within 10 working days from the date on which notice is sent.

Framework contracts shall be liquidated and terminated as per agreement between the State Treasury and financial institutions or when financial institutions fail to satisfy criteria under Clause 1 Article 8 hereof by signing contract liquidation record. In case the financial institutions still possess valid contract annexes, the State Treasury shall terminate framework contracts with the financial institutions on the date on which the last contract annex signed with the State Treasury expires.

3. Primary contents of framework contracts consist of:

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b) Contract date, location of signing.

c) Information on the buyer and the seller, including: name, address, phone number, account number, and account location (deposit accounts and securities depository accounts) of both the buyer and the seller.

d) Form of trade (not including interest of term repurchase, term of repurchase of government bonds, requirements and terms of government bonds, amount of government bonds for trade, value of the first and second trade).

dd) Methods of payment and transfer of government bonds.

e) Rights and obligations of parties.

g) Contract infringement and penalties thereof.

h) Dispute resolution.

i) Effective date of contracts, effective period of contracts, and contract termination; revision to contract terms and requirements.

k) Other relevant information (if any).

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a) Information on government bonds under term repurchase: code of government bonds, posted value, date of issue, date of maturity, nominal interest rate, principal and interest payment methods, remaining term of government bonds, and haircuts.

b) Detail of the first trade: Interest of term repurchase of government bonds; term of repurchase of government bonds, interest of the first term repurchase of government bonds; posted value, quantity of government bonds and value of the first trade corresponding to each code of government bonds.

c) Detail of the second trade: Payment date of the second trade; quantity of government bonds for trade and value of the second trade corresponding to each code of government bonds.

d) Other relevant details (if any).

5. Framework contracts and contract annexes shall be prepared in writing and bear all seals, signatures of competent representatives of parties to the contracts.

Chapter II

SPECIFIC PROVISIONS

Article 10. Procedures for term repurchase of government bonds

1. From 9 a.m. of the date on which term repurchase of government bonds is performed, the State Treasury shall send price quotes for term repurchase of government bonds on debt instrument trading system of the Stock Exchange for financial institutions that have signed framework contracts. Price quotes shall include:

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b) Date of performing term repurchase of government bonds (T day), date of trade (T day + 1).

c) Payment date for the first trade (T day + 2), payment date for the second trade for each type of repurchase term of government bonds.

2. From 9 a.m. to 10 a.m. of T day, financial institutions shall submit price quotes as per trading regulations of the Stock Exchange while ensuring that total price quote for all repurchase terms of government bonds do not exceed remaining outstanding debt quota of the financial institutions (price quotes submitted after 10 a.m. are invalid), to be specific:

a) For each repurchase term of government bonds, each financial institution may send up to 5 price quotes while ensuring that total price quotes do not exceed total price quotes requested by the State Treasury for the repurchase term.

b) Each price quote must include interest for term repurchase (rounded to the nearest tenths); one or multiple codes of government bonds are used as security; price quotes are calculated based on value of government bonds, haircuts, posted values corresponding to each code of government bonds and other relevant details. In which, haircuts are determined according to Clause 1 Article 12 hereof; posted values are determined using formula under Article 13 hereof.

c) Offered quantity calculated based on value of government bonds of each price quote must not be lower than the minimum quantity as per notice of the State Treasury from time to time.

3. From 10 a.m. to 10:15 a.m. of T day, the State Treasury shall open price quotes on debt instrument trading system of the Stock Exchange. Based on received price quotes on debt instrument trading system of the Stock Exchange, the State Treasury shall verify results of term repurchase of government bonds as per Article 11 hereof.

4. Based on results of Clause 3 of this Article, before 1:30 p.m. of T day, the State Treasury shall select price quotes on debt instrument trading system of the Stock Exchange to perform trade.

5. Sign contract annexes:

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After 4:30 p.m. of T day, the State Treasury shall cease signing of contract annexes with financial institutions. The State Treasury shall cancel all results of term repurchase of government bonds of selected financial institutions that fail to complete signing of contract annexes as per trading regulations of the Stock Exchange before 5 p.m. of the T day.

6. Make payment for the first and second trade:

Based on sign contract annexes, the State Treasury and financial institutions shall make payments for the first trade and the second trade (transfer money and government bonds) according to Article 29, Article 31, and Article 32 of Circular No. 30/2019/TT-BTC.

Article 11. Identification of term repurchase results of government bonds

1. Methods of identifying interest of term repurchase of government bonds:

Interest of term repurchase of government bonds applicable to each financial institution is offered interest of the financial institutions selected in descending order and satisfying both requirements below:

a) The lowest interest of term repurchase of government bonds is not lower than the minimum interest regulated by the State Treasury from time to time.

b) Quantity of government bonds for term repurchase accrued until the point where interest of term repurchase of government bonds is at the lowest does not exceed quantity publicized by the State Treasury.

2. Methods of identifying quantity of government bonds for term repurchase for each financial institution:

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In case interest of term repurchase of government bonds is at the lowest and offered quantity accrued up to the interest exceeds the quantity publicized by the State Treasury for the type of repurchase term, after excluding offered quantity in higher interest, the remainder of the quantity publicized by the State Treasury shall be allocated to financial institutions making offers at the lowest interest for term repurchase of government bonds in the ratio corresponding to offered quantity and rounded down to VND billion. The remaining government bonds publicized by the State Treasury after being rounded down in VND billion shall be allocated to the first financial institution making offer at the lowest repurchase interest; in case allocation of the remaining government bonds exceeds the remaining price quotes of this financial institution, the excess shall be allocated to the next financial institution until the quantity publicized by the State Treasury runs out.

b) In case offered quantity of financial institutions exceed remaining outstanding debt of the financial institutions, the offered quantity eligible for consideration of term repurchase of government bonds of financial institutions shall be the remaining outstanding debt prioritizing shorter repurchase terms and higher offer interest.

c) Identification of specific quantity of government bonds for term repurchase of each financial institution shall conform to guidelines under Annex hereof.

Article 12. Value of the first trade, interest of term repurchase, and value of the second trade

1. Value of the first trade of the State Treasury corresponding to each price quotes is determined using following formula:

V₁ = ΣV_i

In which, V_i refers to value of the first trade corresponding to each code of government bonds of selected price quotes and is calculated as follows:

a) For government bonds whose interest is settled on a periodic basis:

V_i = GG x (1 - H) x KL

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V_i: Value of the first trade corresponding to code of government bonds i of the selected price quotes (rounded down to VND).

GG: Price including nominal interest of a government bond of code of government bonds i, calculated according to Article 13 hereof.

H: Haircuts converted to decimal numbers, equal to 5% over price including nominal interest of government bonds.

KL: Quantity of government bonds corresponding to code of government bonds i (= quantity for term repurchase of the code of governments calculated based on value/bond value).

b) For government bonds whose interest is not settled on a periodic basis:

V_i = G x (1 - H) x KL

V_i: Value of the first trade corresponding to code of government bonds i of the selected price quotes (rounded down to VND).

G: Posted price a government bond of code of government bonds i, calculated according to Article 13 hereof.

H: Haircuts converted to decimal numbers, equal to 5% over price including nominal interest of government bonds.

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2. Interest of term repurchase of government bonds is determined based on each price quotes using the following formula:

L = V₁ x R x

T

Number of days in the year

In which:

a) L: Interest of term repurchase of government bonds (rounded down to VND).

b) R: Interest of term repurchase of government bonds (%/year) corresponding to each price quote.

c) T: Term of repurchase of government bonds (day) starting from the date on which payment for the first trade is made until the date preceding the payment data for the second trade inclusively.

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3. Value of the second trade of the State Treasury corresponding to each price quotes is determined using following formula:

V₂ = V₁ + L - ΣC_i

In which:

a) V₂: Value of the second trade.

b) C_i: Nominal interest of code of government bonds i received by the State Treasury (if any).

Article 13. Price including nominal interest, included nominal interest, and posted price of government bonds

1. Price including nominal interest:

a) Identify price of a government bond with fixed nominal interest and periodic settlement of interest:

- For governments whose interest is settled once every 12 months, price of a government bond is determined as follows:

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In which:

GG: Price of a government bond (rounded down to VND).

MG: Face value of government bonds.

L_c: Nominal interest of government bonds (%/year).

d: Number of days from the date on which payment for the first trade is made and the subsequent date of interest settlement.

E: Number of days during the period of interest settlement where government bonds are eligible for term repurchase.

t: Number of times the interest of government bonds is settled from the payment date of the first trade and the maturity date of government bonds.

Lt: Interest rate of government bonds (%/year), refers to interest until maturity (YTM) publicized by the Stock Exchange on the date on which term repurchase of government bonds is performed for code of government bonds used in trade on website of the Stock Exchange (section of the curve yield).

- For government bonds whose interest is settled once every 6 months:

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+ In case date of term repurchase of government bonds occurs after the final registration date of the subsequent interest payment period, price of a government bond is determined as follows:

In which:

GG: Price of a government bond (rounded down to VND).

MG: Face value of government bonds.

L_c: Nominal interest of government bonds (%/year).

d: Number of days from the date on which payment for the first trade is made and the subsequent date of interest settlement.

E: Number of days during the period of interest settlement where government bonds are eligible for term repurchase.

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Lt: Interest rate of government bonds (%/year), refers to interest until maturity (YTM) publicized by the Stock Exchange on the date on which term repurchase of government bonds is performed for code of government bonds used in trade on website of the Stock Exchange (section of the curve yield).

b) Identify price of a government bond whose interest is not settled on a periodic basis: Price including nominal price equal posted price is calculated using formula under Point c Clause 3 of this Article.

c) Ministry of Finance shall publicize methods of determining price including nominal interest in case nominal interest of government bonds is floating interest rate when it occurs.

2. Included nominal interest:

a) Identify included nominal interest on the date of trade eligible for right transfer:

In which:

Cc: Nominal interest on the date of trade eligible for right transfer.

MG: Face value of government bonds.

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Dn: Number of days from the date on which payment for the first trade is made until the nearest subsequent date on which nominal interest is paid or from the date on which payment for the first trade is made until the maturity date of bonds.

E: Number of days during the period of interest settlement where government bonds are eligible for term repurchase.

b) Identify included nominal interest on the date of trade ineligible for right transfer:

In which:

Cx: Nominal interest on the date of trade ineligible for right transfer.

MG: Face value of government bonds.

 in which Lc: Nominal interest of bonds (%/year); k: number of times the interest is settled in the year.

Dn: Number of days from the date on which payment for the first trade is made until the nearest subsequent date on which nominal interest is paid or from the date on which payment for the first trade is made until the maturity date of bonds.

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c) Included nominal interest in case payment date overlaps date on which nominal interest rate is settled equals 0.

3. Posted price of government bonds:

a) For government bonds whose interest is settled at the end of the period:

- Determine posted price on the date of trade eligible for right transfer:

G = GG - Cc

In which:

G: Posted price (rounded down to VND).

GG: Price included nominal price of a government bond.

Cc: Nominal interest on the date of trade eligible for right transfer.

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G = GG + Cx

In which:

G: Posted price (rounded down to VND).

GG: Price included nominal price of a government bond.

Cx: Nominal interest on the date of trade ineligible for right transfer.

- Determine posted price in case payment date of the first trade overlaps with payment date of nominal interest:

G = GG

In which:

G: Posted price.

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b) For government bonds whose interest is settled at the beginning of the period:

- Determine posted price on the date of trade eligible for right transfer:

G = GG + Cx

In which:

G: Posted price (rounded down to VND).

GG: Price included nominal price of a government bond.

Cx: Nominal interest on the date of trade ineligible for right transfer.

- Determine posted price on the date of trade ineligible for right transfer:

G = GG + Cx + MG x Rc

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G: Posted price (rounded down to VND).

GG: Price included nominal price of a government bond.

Cx: Nominal interest on the date of trade ineligible for right transfer.

MG: Face value of government bonds.

in which Lc: Nominal interest of bonds (%/year); k: number of times the interest is settled in the year.

- Determine posted price in case payment date overlaps with payment date of nominal interest:

G = GG + MG X Rc

In which:

G: Posted price (rounded down to VND).

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MG: Face value of government bonds.

 in which Lc: Nominal interest of bonds (%/year); k: number of times the interest is settled in the year.

c) For government bonds whose interest is not settled on a periodic basis:

In which:

G: Price of a government bond (rounded down to VND).

MG: Face value of government bonds.

a: Number of days from the payment date of the first trade to the maturity date of government bonds.

E: Number of days during the presumed period of interest settlement where government bonds are eligible for term repurchase.

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Article 14. Actions against late payment for the first trade, second trade

1. In case of late payment for the first trade or second trade, the party that fails to make payment in a timely manner must submit late payment penalties to the other party. The late payment fine is determined according to Clause 2 of this Article; the party that fails to make payment in a timely manner shall submit the fine directly to deposit account of the other party on the same date as date for the first and second payment respectively (and not included in value of the first or second payment).

2. Late payment penalty is calculated using the following formula:

Late payment penalty = Value of payment which is not made in a timely manner (VND) x Interest of late payment penalty (%/year) x Number of days past the payment deadline/365 days.

In which:

a) Value of payment which is not made in a timely manner is calculated based on value of the payment which is not made in a timely manner (including principal and interest).

b) Interest of late payment penalty equals 150% of interest of term repurchase of government bonds of contract annexes on late payment and does not exceed 10%/year.

c) Number of days past the payment deadline is determined by the number of days starting from the payment date as per contract annex until the date preceding the actual payment date.

Article 15. Solutions for cases where financial institutions fail to pay the State Treasury

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2. Once the payment deadline under Clause 1 of this Article is reached and financial institutions have not paid the State Treasury, the State Treasury shall retain government bonds until maturity and receive both principal and interest of government bonds to deduce all payment liabilities (payment for the second payment and late payment penalty) of the financial institutions; the remaining amount (if any) shall be returned to the financial institutions by the State Treasury.

Article 16. Clearance and accounting

1. Use and reimbursement of state funds for term repurchase of government bonds shall be subject to clearance as per accounting regimes of state budget.

2. Expenditure and revenues of term repurchase of government bonds shall be cleared and included in professional expenditure and revenues of the State Treasury according to Circular No. 180/2013/TT-BTC dated December 2, 2013 of Ministry of Finance.

Article 17. Information publication of the State Treasury

Before the 10^th of each month, the State Treasury shall publicize results of term repurchase of government bonds in the preceding month (weighted average of quantity, interest of term repurchase of government bonds on website of the State Treasury for each type of term).

Chapter III

ORGANIZATION FOR IMPLEMENTATION

Article 18. Responsibilities of relevant entities

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a) Fully implement tasks, powers, and obligations related to term repurchase of government bonds according to Decree No. 24/2016/ND-CP dated April 5, 2016 of the Government, Circular No. 314/2016/TT-BTC dated November 28, 2016 of Ministry of Finance guiding implementation of Decree No. 24/2016/ND-CP, Circular No. 64/2019/TT-BTC dated September 16, 2019 of Ministry of Finance on amendment to Circular No. 314/2016/TT-BTC, Circular No. 30/2019/TT-BTC dated May 28, 2019 of Ministry of Finance, and this Circular.

b) Cooperate in providing information on term repurchase of government bonds (quantity, interest, time, term of repurchase of government bonds) with State Bank of Vietnam.

2. The Stock Exchange:

a) Organize trading system to perform trade of the State Treasury according to Article 10 and Article 13 hereof;

b) Publicize interest until maturity (YTM) for lists of government bonds of the State Treasury according to Article 13 hereof.

3. The VSDC: Make payment for term repurchase of government bonds of the State Treasury according to Article 29, Article 32, and Article 33 of Circular No. 30/2019/TT-BTC.

Article 19. Implementation

1. This Circular comes into force from April 1, 2021.

2. This Circular replaces regulations on term repurchase of government bonds under Article 9 of Circular No. 314/2016/TT-BTC dated November 28, 2016 of Ministry of Finance.

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PP. MINISTER
DEPUTY MINISTER




Do Hoang Anh Tuan

ANNEX

DETERMINATION OF INTEREST AND ALLOCATION OF GOVERNMENT BOND QUANTITY FOR TERM REPURCHASE
(Attached to Circular No. 107/2020/TT-BTC dated December 21, 2020 of Minister of Finance)

1. In case no financial institutions exceed outstanding debt quotas

For example: The State Treasury announces to perform term repurchase of VND 300 billion of government bonds with 14-day term, minimum interest of term repurchase of government bonds determined by the State Treasury shall be 4.5%/year and bidding interest of financial institutions as below, interest and quantity of government bonds for term repurchase of each financial institutions are as follows:

No.

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Registered interest

Registered quantity

Accrued quantity1

Result

Quantity for term repurchase

Interest of term repurchase

(%/year)

(VND billion)

(VND billion)

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(%/year)

1

A

5.00%

50

50

50

5.00%

2

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4.90%

60

110

60

4.90%

3

A

4.80%

80

...

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80

4.80%

4

B

4.80%

21

211

21

4.80%

...

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...

D

4.70%

48

259

48

4.70%

6

C

4.70%

...

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...

279

20

4.70%

7

B

4.70%

22

301

21

...

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8

B

4.60%

50

-

-

9

C

...

...

...

70

-

-

10

C

4.20%

100

-

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...

Total

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521

300

- Minimum interest shall equal 4.7%/year which shall be the lowest offered interest selected in descending order of offered interest while satisfying 2 requirements: (i) No lower than minimum interest regulated by the State Treasury; (ii) Quantity of government bonds for term repurchase accrued until this interest is reached does not exceed the quantity announced by the State Treasury.

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+ Financial institution D shall be allocated with 48/90 x 89 – VND 47.47 billion => Financial institution D shall receive VND 47 billion (after rounding down).

+ Financial institution C shall be allocated with 20/90 x 89 = VND 19.78 billion => Financial institution C shall receive VND 19 billion.

+ Financial institution B shall be allocated with 22/90 x 89 = VND 21.76 billion => Financial institution B shall receive VND 21 billion.

- Quantity allocated to 3 financial institutions making offer at 4.7%/year is VND 87 billion, total quantity of government bonds for term repurchase at 4.7%/year that has been allocated is VND 289 billion with VND 2 billion to spare compared to the quantity announced by the State Treasury.

- Assuming the following financial institutions make offer in the following order: D, C, B (with Financial institution D makes the earliest offer). Thus for the remaining VND 2 billion: Financial institution D shall receive VND 1 billion (= VND 48 billion offered – VND 47 billion allocated) and Financial institution C shall receive VND 1 billion.

- Result of term repurchase of government bonds:

+ Financial institution A: VND 190 billion (VND 50 billion with interest of 5%/year, VND 60 billion with interest of 4.9%/year, and VND 80 billion with interest of 4.8%/year).

+ Financial institution B: VND 42 billion (VND 21 billion with interest of 4.8%/year, VND 21 billion with interest of 4.7%/year).

+ Financial institution C: VND 20 billion (interest of 4.7%/year).

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2. In case financial institutions exceed outstanding debt quotas

Assuming Financial institution has outstanding debt quotas for term repurchase of government bonds of VND 5,000 billion, total value of valid contract annexes for term repurchase of government bonds at the date on which term repurchase of government bonds is performed is VND 4.900 billion. Thus, remaining quotas for Financial institution A is VND 100 billion.

Assuming offered quantity and offered term repurchase of government bonds are as below:

- For 7-day term (the State Treasury offers VND 300 billion):

No.

Financial institution

Registered interest rate

Registered quantity

Accrued quantity2

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...

Quantity of term repurchase

Interest of term repurchase

(%/year)

(VND billion)

(VND billion)

(VND billion)

(%/year)

1

A

...

...

...

50

50

50

4.00%

2

B

3.90%

60

110

...

...

...

3.90%

3

C

3.80%

80

190

80

3.80%

4

...

...

...

3.80%

21

211

21

3.80%

5

D

3.70%

48

...

...

...

48

3.70%

6

C

3.70%

20

279

20

3.70%

...

...

...

B

3.65%

22

301

21

3.70%

8

B

3.60%

...

...

...

-

-

9

C

3.40%

70

-

-

...

...

...

Total

421

300

- For 14-day term (the State Treasury offers VND 300 billion):

No.

...

...

...

Registered interest rate

Registered quantity

Accrued quantity3

Result

Quantity of term repurchase

Interest of term repurchase

(%/year)

(VND billion)

(VND billion)

...

...

...

(%/year)

1

A

5.00%

30

30

30

5.00%

2

...

...

...

4.90%

60

50

20

4.90%

3

A

4.80%

80

...

...

...

-

4.80%

4

B

4.80%

21

71

21

4.80%

...

...

...

D

4.70%

48

119

48

4.70%

6

C

4.70%

...

...

...

139

20

4.70%

7

B

4.70%

22

161

21

...

...

...

8

B

4.60%

50

211

50

4.60%

9

C

...

...

...

70

281

70

4.40%

Total

401

...

...

...

- For 21-day term (the State Treasury offers VND 300 billion):

No.

Financial institution

Registered interest rate

Registered quantity

Accrued quantity4

Result

Quantity of term repurchase

...

...

...

(%/year)

(VND billion)

(VND billion)

(VND billion)

(%/year)

1

A

6.00%

50

...

...

...

-

-

2

A

5.90%

60

-

-

-

...

...

...

A

5.80%

80

-

-

-

4

B

5.80%

...

...

...

50

50

3.80%

5

D

5.70%

60

110

60

...

...

...

6

C

5.70%

50

160

50

3.70%

7

B

...

...

...

80

240

80

3.70%

8

B

5.60%

100

340

...

...

...

5.60%

9

C

5.40%

50

-

-

Total

...

...

...

580

200

Assuming minimum interest of term repurchase of government bonds determined by the State Treasury for is 3.5%/year for 7-day term, 4.5%/year for 14-day term, and 5%/year for 21-day term. Interest and quantity of term repurchase of government bonds of each financial institution are determined as follows:

- Consideration of offers of Financial institution A: Prioritizing short terms, offers of Financial institution A in the 7-day term shall be prioritized for consideration:

+ For 7-day term: Quantity of government bonds for term repurchase for 7-day term of Financial institution A is VND 50 billion with interest of 4%/year. Thus, remaining quotas of Financial institution A is VND 50 billion for offers in 14-day term (the adjacent greater term).

+ For 14-day term: Quantity of government bonds for repurchase is VND 30 billion with interest of 5%/year and VND 20 billion with interest of 4.9%/year and thus, Financial institution A runs out of their remaining quotas. Thus, offers at higher interest shall not be taken into consideration.

...

...

...

- Quantity and offered interest of financial institutions B, C, and D shall be considered in a manner specified under Point 1.

1 Refers to quantity accrued at selectable interest rates

2 Refers to quantity accrued at selectable interest rates

3 Refers to quantity accrued at selectable interest rates

4 Refers to quantity accrued at selectable interest rates