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STATE
BANK OF VIET NAM
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 19/2009/TT-NHNN
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Hanoi, August 24, 2009
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CIRCULAR
GUIDING FOREIGN EXCHANGE CONTROL APPLICABLE TO TRADING
GOVERNMENT BONDS DENOMINATED IN FOREIGN CURRENCY ISSUED PURSUANT TO DECISION
211-QD-TTg OF THE PRIME MINISTER OF THE GOVERNMENT DATED 13 FEBRUARY 2009
Pursuant to the 1997 Law on
State Bank of Viet Nam and the 2003 Law on Amendments to the Law on State Bank
of Viet Nam;
Pursuant to Decree 96-2008-ND-CP of the Government dated 26 August 2008 on
functions, duties, powers and organizational structure of the State Bank of
Viet Nam;
Pursuant to the Ordinance on Foreign Exchange dated 13 December 2005;
Pursuant to Decree 160-2006-ND-CP of the Government dated 28 December 2006
providing regulations for implementation of the Ordinance on Foreign Exchange
Control ["Decree 160"];
Pursuant to Decision 211-QD-TTg of the Prime Minister of the Government dated 13
February 2009 on issuance of Government bonds denominated in foreign currency
on the domestic capital market ["Decision211"];
The State Bank of Viet Nam
hereby provides the following guidelines on foreign exchange control applicable
to trading Government bonds denominated in foreign currency issued pursuant to
Decision 211:
Article 1 Governing scope and
applicable entities
1. This Circular regulates
foreign exchange control applicable to trading Government bonds denominated in
foreign currency issued pursuant to Decision 2111.
2. This Circular applies to
resident organizations and resident individuals legally operating in Viet Nam
and participating in trading FC Bonds.
Article 2 Foreign currency
sources permitted to be used to trade bonds
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2. Organizations shall not be
permitted to use State budget capital or other sources of Government assistance
capital in order to purchase FC Bonds.
Article 3 Opening and using a
foreign currency savings account in order to trade FC Bonds
1. Viet Nam Securities
Depository2 and depository members shall open a foreign currency savings
account at a designated payment bank in accordance with current regulations on
foreign exchange control, in order to settle FC Bonds [transactions].
2. A resident individual or
resident organization shall only be permitted to use its foreign currency
savings account opened at a credit institution licensed to conduct foreign
exchange activities as stipulated in article 30 of Decree 160. A foreign
currency savings account shall be used in order to implement the following
revenue and disbursement transactions relating to trading FC Bonds:
(a) Revenue into the account:
To collect foreign currency
proceeds from the sale of FC Bonds; to receive payment being repayment of
principal and interest when the bonds mature; and to collect proceeds being
receipt in one's capacity as trustee engaged in bidding for bonds, and other
items of revenue relating to trading FC Bonds.
(b) Disbursements from the
account:
To disburse foreign currency in
order to purchase FC Bonds; to disburse payments out as
trustee, including fees for
trading bonds and other disbursements relating to trading FC Bonds.
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Resident organizations and
resident individuals who are bondholders shall be permitted to pledge their FC
Bonds in order to borrow capital
at credit institutions licensed to conduct foreign exchange activities, in
accordance with current regulations.
Article 5 Organization of
implementation
1. This Circular shall be of
full force and effect on 1 November 2009.
2. The Chief of Office, the
Chief Inspector of the Banking Inspection and Supervisory body, heads of
entities under the State Bank, Directors of State Bank branches of provinces
and cities under central authority, and chairmen of boards of management and
general directors (directors) of credit institutions licensed to conduct
foreign exchange activities shall be responsible for implementation of this
Circular.
GOVERNOR
OF THE STATE BANK
Nguyen Van Binh