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THE MINISTRY
OF FINANCE
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No: 56/1999/TT-BTC
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Hanoi, May 19, 199
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CIRCULAR
GUIDING THE IMPLEMENTATION OF DECREE No.
34/1999/ND-CP OF MAY 12, 1999 OF THE GOVERNMENT STIPULATING THE ISSUANCE OF THE
1999 GOVERNMENT BONDS FOR NATIONAL CONSTRUCTION
In furtherance of Decree No. 34/1999/ND-CP of
May 12, 1999 of the Government stipulating the issuance of the 1999 government
bonds for national construction, the Ministry of Finance hereby guides in
detail the implementation thereof as follows:
I.
GENERAL PROVISIONS
1. The 1999 government bonds for national
construction shall be issued and repaid at the State Treasury’s units throughout the country.
2. The government bond purchase shall be made on
the principle of voluntariness and according to the financial capability of
organizations and individuals. The State encourages organizations and
individuals to actively participate in the purchase of government bonds for
national construction through the propaganda and assignment of mobilization
plans for the purchase of government bonds.
3. On the basis of the mobilization plans for
the purchase of government bonds, the provinces and centrally-run cities shall
organize the mobilization of every organization and individual for the purchase
of government bonds in order to achieve their assigned quotas of capital
mobilization.
II.
SPECIFIC PROVISIONS
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1.1. The government bond model is set by the
Ministry of Finance. The Central State Treasury is assigned to organize the
printing and uniform management of government bonds throughout the country.
1.2. Bearer government bonds with pre-printed
denominations shall include 11 denominations: 20,000 dong, 50,000 dong, 100,000
dong, 200,000 dong, 500,000 dong, 1,000,000 dong, 2,000,000 dong, 5,000,000
dong, 10,000,000 dong, 20,000,000 dong and 50,000,000 dong.
1.3. The government bond ticket is sized 270 mm
x 100 mm and includes two parts: the detachable part sized 180 mm x 100 mm,
which shall be handed to the purchasers, and the stub sized 90 mm x 100 mm,
which shall be kept at the State Treasury’s
units where the government bonds are issued.
1.4. The color features and technical
specifications:
- On the government bond ticket’s front side:
+ The background is in pink on both ends
differentiated by the yellow background and dark- yellow flower patterns in the
middle. All these yellow parts are luminous under ultra-violet light.
+ Clusters of flower patterns on both ends, with
mutually inserted C and T letters, which are luminous under ultra-violet light.
+ Serial number: The government bond’s detachable part is printed with 2 rows of serial
number (at the upper right and bottom left corners), each row begins with 2
letters followed by 7 numerals. The government bond’s
serial number is in magenta and luminous under ultra-violet light.
- On the back side: Background is in red, while
border and inscription are in dark red.
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- Printing ink: Government bonds are printed
with indelible ink and luminous ink for anti-counterfeiting purpose.
1.5. The Central State Treasury shall organize
the printing, preservation and transport of government bonds to issuance places
under the State Treasury’s units in the provinces
and centrally-run cities. The hand-over, receipt, transport, preservation and
management of government bonds shall be conducted as for cash and valuable
certificates.
2. Issuance of government bonds:
2.1. Government bonds shall be issued and repaid
in Vietnam dong, with a term of 5 years as from May 19, 1999 throughout the
country.
2.2. The total capital volume to be mobilized
shall be 4,000 billion dong (four thousand billion dong). Depending on the
actual mobilization result, the Ministry of Finance shall announce the
cessation of issuance of the government bonds at a proper time.
2.3. Government bond purchasers include:
a) Vietnamese citizens within and without the
country.
b) Overseas Vietnamese.
c) Foreigners working and/or residing in
Vietnam.
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e) Political, socio-political, social and
socio-professional organizations.
f) State enterprises.
g) Other enterprises of all economic sectors.
h) Foreign organizations operating on the
Vietnamese territory.
- The subjects defined in Points d, e and f
above shall not be allowed to use the State budget capital and funds for the
purchase of government bonds.
- The above-said subjects can purchase
government bonds with cash or account transfers in unlimited volumes.
- Overseas Vietnamese who wish to purchase
government bonds may purchase government bonds through their respective
representative organizations or individuals in Vietnam.
2.4. Basing itself on the population’s income level and the financial capability of State
enterprises and other agencies as well as organizations, the Ministry of
Finance shall assign mobilization plans for the purchase of government bonds to
the provinces, centrally-run cities and organizations. Enterprises suffering
from losses in their business activities or poor communes meeting with great
difficulties shall not be assigned mobilization plans for the purchase of
government bonds.
2.5. The State Treasury that directly organizes
the government bond issuance shall have to elaborate the plan for printing
government bonds according to a rational denomination structure; adequately
supply government bonds to the State Treasury’s
units for issuance; organize fixed and mobile government bond selling counters;
simplify the administrative procedures in order to create all favorable
conditions for the government bond purchasers; monitor and report to the
Ministry of Finance the results of the implementation of government bond
purchase plans by the provinces and centrally-run cities as well as organizations;
and propose the commendation and rewards to be given to collectives and
individuals with large purchase of government bonds.
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3.1. The government bond principals and
interests shall be repaid on the following principles:
a) The principals of government bonds shall be
repaid in lump-sums upon their maturity (full 60 months).
- In cases where the government bond owners meet
with great difficulties or force majeure risks such as: natural
calamities or fires with certification by their superior levels, immediate
managing agencies or local administrations, the State Treasury shall consider
and repay their government bonds ahead of time.
- In cases where the owners of mature government
bonds have not yet been repaid, the State Treasury shall preserve such
government bonds’ principals and
interests on separate accounts, and the post-maturity period shall not enjoy
interest.
b) The mature government bonds’ interests shall be repaid in lump-sums together
with the principals.
- The interest rate inscribed on the 1999
government bonds shall be 10%/year (including inflation rate and an interest
rate of 1.5%/year) and the gross interest rate for 5 years shall be 50%.
In cases where the actual five-year inflation
rate plus the five-year interest rate (7.5%) is higher than 50%, the government
bond owners shall enjoy the interest rate difference made up for by the State.
In cases where the actual five-year inflation
rate plus the five-year interest rate (7.5%) is lower than or equal to 50%, the
government bond owners shall still enjoy the interest rate of 50% as inscribed
on the already issued government bond tickets.
- The pre-mature repayment interest rates
calculated on the money amounts denominated on the government bond tickets are
prescribed as follows:
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+ If the government bonds have been bought for
full 12 to under 24 months, they shall be eligible for an interest rate of 10%.
+ If the bonds have been bought for full 24 to
under 36 months, they shall be eligible for an interest rate of 20%.
+ If the bonds have been bought for full 36 to
under 48 months, they shall be eligible for an interest rate of 30%.
+ If the bonds have been bought for full 48 to
under 60 months, they shall be eligible for an interest rate of 40%.
The pre-mature repayment interest rates shall be
the fixed ones, not depending on the inflation rate fluctuation.
3.2. The State Treasury system shall have to
organize the repayment of government bond principals and interests; guide the
government bond owners to fill in the necessary procedures in a convenient and
safe manner. In cases where the State Treasury wishes to entrust the government
bond repayment to other organizations, it shall have to obtain the Ministry of
Finance�s approval.
3.3. The mature and post-mature government bond
repayment shall be made at the State Treasury�s
units or organizations authorized by the State Treasury (not depending on where
the government bonds have been purchased). In case of pre-mature repayment, the
government bond owners shall have to go to the State Treasury where their
government bonds were issued to fill in the repayment procedures.
3.4. The government bond owners may file written
requests for repayment together with their government bond tickets to the State
Treasury (or organizations authorized by the State Treasury) in order to have
the whole amounts of their government bond principals and interests transferred
to accounts designated by themselves and shall have to pay a fee as stipulated
in Point 2.2, Section 2, Part III of this Circular. The money transfer fee
shall be deducted from the repaid government bond amounts.
3.5. Government bonds which have been modified,
erased, or patched shall not be repaid.
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4. The interests and responsibilities of the
government bond purchasers:
4.1. They shall be entitled to freely purchase,
sell, donate, bequeath or pledge their government bonds.
4.2. The incomes earned from the government bond
interests by all subjects shall be exempt from income tax.
4.3. The government bond owners may deposit
their government bond tickets at the State Treasury for preservation.
4.4. It is prohibited to use government bonds as
substitutes for money in circulation and directly use them in payment
transactions, including tax payments to the State.
4.5. Government bonds purchased (or repurchased)
by organizations shall be managed like other assets of such units. In cases
where an organization that has purchased government bonds is dissolved,
bankrupt, merged, amalgamated, divided or split up or has its operation
terminated, such government bonds shall be handled according to provisions of
law.
III.
MANAGEMENT OF SOURCES OF GOVERNMENT BOND REVENUES, ISSUANCE PAYMENT AND
EXPENSES AND REPAYMENT
1. Management of the sources of national
construction government bond revenue and repayment:
1.1. The whole proceeds from the government
bonds shall be recorded as the Central budget’s
revenues at the State Treasury where such government bonds are issued according
to Chapter 160A, Category 10, Clause 5, Item 086, Sub-Item 03.
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- For mature or post-mature government bond
repayment: The Ministry of Finance shall carry out the procedures for
transferring capital to the State Treasury for repayment to government bond
owners.
- For pre-mature government bond repayment: The
State Treasury shall advance money for repayment to government bond owners.
Monthly, the State Treasury shall sum up the amounts already repaid and request
the Ministry of Finance to refund the amounts it has advanced.
2. The expenses:
2.1. The expenses for government bond printing,
issuance and repayment shall be allocated from the Central budget on the
principle of thorough thriftiness and according to the approved estimates. The
total expense amount shall be decided by the Ministry of Finance.
2.2. The expenses for transferring government
bond principals and interests into the accounts designated by the government
bond owners shall be paid by such owners equal to the via-bank payment fee.
2.3. The government bond owners who request the
State Treasury to keep their government bond tickets shall be exempt from the
preservation and safe-keeping fee.
IV.
COMMENDATION, REWARDS AND HANDLING OF VIOLATIONS
1. The commendation and rewarding of
organizations and individuals with meritorious achievements and the handling of
violation acts shall comply with Article 15 of Decree No.34/1999/ND-CP of May
12, 1999 of the Government stipulating the issuance of the 1999 government
bonds for national construction.
2. The reward funds and reward levels shall
comply with provisions of Circular No.24/1999/BTC-TT of March 4, 1999 of the
Ministry of Finance guiding the financial management in implementing the regime
of commending and rewarding outstanding achievements in performing the socio-economic
and national defense tasks.
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1. The General Department of Statistics shall
have to calculate and publicize the inflation rate at the Ministry of Finance’s request to serve as basis for the government bond
repayment.
2. The Ministry of Culture and Information shall
closely coordinate with the Ministry of Finance, the Central Committee of the
Vietnam Fatherland Front and the People’s
Committees of the provinces and centrally-run cities in well organizing the
propaganda to mobilize the people to purchase government bonds; the Vietnam
Television Station, the Radio Voice of Vietnam, the Vietnam News Agency and
other mass media agencies shall work out plans and arrange time schedule for
regularly and promptly transmitting reports on matters related to the 1999
government bond issuance, in order to help the people well understand their
interests and obligations toward the country; and at the same time mobilize and
encourage all organizations and individuals to purchase government bonds for
national construction.
3. The ministries, the ministerial-level
agencies and the agencies attached to the Government shall have to mobilize,
urge and inspect the situation of government bond purchase according to the
plans already announced to the units and organizations under the Central
management.
4. The People’s
Committees of all levels shall, within their respective tasks and powers, have
to coordinate with the Central Committee of the Vietnam Fatherland Front and
the mass media agencies in well carrying out the propaganda, mobilization,
urging and inspection of enterprises, agencies, mass organizations and people
of all strata in their respective localities in the performance of plans for
purchase of government bonds for national construction.
5. The provincial/municipal Finance and Pricing
Services shall have to assist the People�s
Committees of the provinces and centrally-run cities in carrying out the
propaganda and campaigning for government bond issuance at such provinces and
centrally-run cities.
VI.
ORGANIZATION OF IMPLEMENTATION
1. This Circular takes effect after its signing.
2. The General Director of the State Treasury,
the heads of the concerned units attached to the Ministry of Finance, the
directors of the State Treasury’s
units in the provinces and centrally-run cities shall have to guide and
organize the implementation of provisions of this Circular.
3. The ministers, the heads of the
ministerial-level agencies and agencies attached to the Government, the
presidents of the People’s Committees of the
provinces and centrally-run cities shall have to implement this Circular.
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THE MINISTRY OF
FINANCE
Nguyen Thi Kim Ngan