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THE MINISTRY OF FINANCE
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No.
12/2023/TT-BTC
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Hanoi, February 10, 2023
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CIRCULAR
ON AMENDMENTS TO
CIRCULAR NO. 107/2020/TT-BTC DATED DECEMBER 21, 2020 OF THE MINISTER OF FINANCE
ON GUIDELINES FOR 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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Article 1. Amendments to Circular No. 107/2020/TT-BTC dated
December 21, 2020 of the Minister of Finance on guidelines for term repurchase
of government bonds using temporarily idle state funds of State Treasury as
follows:
1. Clause 5
Article 3 is amended as follows:
“5. remaining term of government
bonds: refers to remaining time (by day) from the payment date of the first
trade (T day + 2) to maturity date of government bonds.”.
2. Clause 1
Article 5 is amended as follows:
“1. The government bonds are issued by the State Treasury
and posted publicly at the Stock Exchange.".
3. Article 9 is
amended as follows:
a) Point a clause 4 is amended as follows:
“a) Information on government bonds under term repurchase:
code of government bonds, remaining term of government bonds, haircuts, discount
interest rate (%/year).”.
b) Point c clause 4 is amended as follows:
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c) Clause 5 is amended as follows:
“5. Framework contracts and contract annexes shall be
prepared in paper documents (bearing all seals, signatures of competent
representatives of parties to the contracts) or electronic documents (digitally
signed by the authorized person and digitally signed by agencies and
organizations as prescribed by law), in accordance with regulations on
electronic transactions in professional practices of the State Treasury.”.
4. Certain clauses of Article 10 is amended as follows:
a) Clause 2 is amended as follows:
“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 10:30 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 in term repurchase of government bonds; price quotes
are calculated based on value of government bonds corresponding to each code of
government bonds and other relevant details.
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.”.
b) Clause 3 is amended as follows:
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5. Certain
clauses of Article 12 is amended as follows:
a) Clause 1 is amended as follows:
“1. Value of the first trade of the State Treasury
corresponding to each price quotes is determined using following formula:
V1=
ƩVi
In which, Vi refers to value of the first trade
corresponding to each code of government bonds of selected price quotes and is
calculated as follows:
Vi= GG x (1 - H) x KL
In which:
Vi: 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.
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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) Clause 3 is amended as follows:
“3. Value of the second trade of the State Treasury corresponding
to each price quotes is determined using following formula:
V2 =
V1 + L
In which, V2 is value of the second trade.”.
6. Article 13 is
amended as follows:
“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 without periodic
settlement of interest
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In which:
GG = Price of a government bond (rounded down to VND).
MG = Face value of government bonds.
a = 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 presumed 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 to 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).
a.2) For government bond without periodic settlement of
interest with the remaining term of less than 1 year:
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In which:
GG = 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.
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 with fixed nominal
interest, periodic settlement of interest, and equal interest payment periods:
b.1) For government bond with the remaining term of at least
1 year:
- In case payment date of the first
trade occurs before or on the final registration date of the subsequent
interest payment period, price of a government bond is determined as follows:
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-
In case payment date of the first trade 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.
Lc = Nominal interest of government bonds (%/year).
k = Number of periodic interest payments in a 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.2) For government bond with the remaining term of less
than 1 year:
- For governments whose interest is
settled once every 12 months, price of a government bond is determined as
follows:
- For government bonds whose interest
is settled once every 6 months:
+ In case payment date of the first trade occurs before or
on the final registration date of the subsequent interest payment period, price
of a government bond is determined as follows:
+ In case payment date of the first trade occurs after the
final registration date of the subsequent interest payment period, price of a
government bond is determined as follows:
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GG: Price of a government bond (rounded down to VND).
MG: Face value of government bonds.
Lc: 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).
b) Identify price of a government bond with fixed nominal
interest, periodic settlement of interest, and the first interest payment
period shorter or longer than the subsequent interest payment periods:
c.1) For government bond with the remaining term of at least
1 year:
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+ In case the actual number of days from the payment date of
the first trade to the interest payment date of the first interest payment
period that is shorter than one (01) normal interest payment period, the price
of one (01) government bond is determined as follows:
+ In case the actual number of days from the payment date of
the first trade to the interest payment date of the first interest payment
period that is longer than or equal to one (01) normal interest payment period,
the price of one (01) government bond is determined as follows:
In which:
GG = Price of a government bond (rounded down to VND).
GL1 = The interest payment amount of one (01) government
bond for the first interest payment period according to the terms of the
government bond upon initial issuance.
MG = Face value 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).
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k = Number of periodic interest payments in a year.
a1 = The actual number of days between the payment date of
the first trade and the first government bond interest payment date according
to the terms of the government bond upon initial issuance.
a2 = Actual number of days from the payment date of the
first trade to the assumed normal interest payment date.
E = Actual number of days in the normal interest payment
period under the terms of government bonds when first issued.
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.
- In case the payment date of the first trade is after the
last registration date to receive interest on government bonds of the first
interest payment period, the price of one (01) government bond is determined
according to the Item b.1 point b of this clause.
c.2) For government bonds with the remaining term of one
(01) year or less, the price of one (01) government bond is determined
according to Item b.2 point b of this Clause.
d) 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:
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a.1) For a government bond with fixed nominal interest,
periodic settlement of interest, and equal interest payment periods:
In which:
Cc: Nominal interest on the date of trade eligible for right
transfer.
MG: Face value of government bonds.
Rc = Lc/k, 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.
E: Actual number of days of the current government bond
interest payment period.
a.2) Identify price of a government bond with fixed nominal
interest, periodic settlement of interest, and the first interest payment
period shorter than the subsequent interest payment periods:
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In which:
Cc: Nominal interest on the date of trade eligible for right
transfer.
MG: Face value of government bonds.
Rc = Lc/k, in which Lc: nominal interest of bonds (%/year);
k: number of times the interest is settled in the year.
D1: Number of days from the date of initial issuance of
government bonds to the nearest next nominal interest payment date.
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.
E2: Actual number of days from the normal government bond
interest payment period under the assumption that the 1st transaction
settlement date takes place.
- Determine the accumulated nominal interest on the date of
the subsequent interest payment periods according to the formula at Item a.1 of
this point.
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- In case the 1st transaction settlement date occurs before
or coincides with the assumed nominal interest payment date of the first
interest payment period, the accumulated nominal interest of the first interest
payment period is determined as follows:
In which:
Cc: Nominal interest on the date of trade eligible for right
transfer.
MG: Face value of government bonds.
Rc = Lc/k, in which Lc: nominal interest of bonds (%/year);
k: number of times the interest is settled in the year.
D2: Number of days from the date of initial issuance of
government bonds to the date of payment of assumed nominal interest.
Dn: Number of days from the payment date of the first trade
to the next payment date of assumed nominal interest.
E1: Actual number of days from the normal government bond
interest payment period under the assumption that the 1st transaction
settlement date takes place.
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In which:
Cc: Nominal interest on the date of trade eligible for right
transfer.
MG: Face value of government bonds.
Rc = Lc/k, in which Lc: nominal interest of bonds (%/year);
k: number of times the interest is settled in the year.
D2: Number of days
from the date of initial issuance of government bonds to the date of payment of
assumed nominal interest.
E1: Actual number of days from the normal government bond
interest payment period under the assumption that the 1st transaction
settlement date takes place.
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.
E2: Actual number of days from the normal government bond
interest payment period under the assumption that the 1st transaction
settlement date takes place.
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b) Identify included nominal interest on the date of trade
ineligible for right transfer:
b.1) For a government bond with fixed nominal interest,
periodic settlement of interest, and equal interest payment periods:
In which:
Cx: Nominal interest on the date of trade ineligible for
right transfer.
MG: Face value of government bonds.
Rc = Lc/k, 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.
E: Actual number of days of the current government bond
interest payment period.
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- Identify included nominal interest on the date of trade
eligible for the first interest payment period as follows:
In which:
Cx: Nominal interest on the date of trade ineligible for
right transfer.
MG: Face value of government bonds.
Rc = Lc/k, 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.
E2: Actual number of days from the normal government bond
interest payment period under the assumption that the 1st transaction
settlement date takes place.
- Determine the accumulated nominal
interest on the date of the subsequent interest payment periods according to
the formula at Item b.1 of this point.
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3. Posted price of government bond
a) 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.
b) Determine posted price on the date of trade ineligible
for right transfer:
G = GG + Cx
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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.
c) 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.
GG: Price included nominal price of a government bond.
d) For government bonds whose interest is not settled on a
periodic basis:
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In which:
G: Posted price.
GG: Price included nominal price of a government bond.”.
7. Clause 2
Article 15 is amended as follows:
“2. In case the State Treasury and the financial institution
cannot agree on the adjustment of the payment time or 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 by the end of the day preceding the maturity date) of the financial
institutions; the remaining amount (if any) shall be returned to the financial
institutions by the State Treasury within five (05) working days from the date
of maturity of government bonds.”.
8. Article 15a
shall be added to Article 15 as follows:
“Article
15a. Nominal interest on government bonds
1. In case the State Treasury receives nominal interest on
government bonds during the period of term repurchase of government bonds, the
State Treasury is responsible for returning the nominal interest on government
bonds received to financial institutions according to the government bond code
for which the State Treasury received the nominal interest. The repayment
of nominal interest on government bonds is done outside the debt instrument
trading system of the Stock Exchange; the time of repayment of nominal interest
shall be mutually agreed upon by the two parties, but must not be later than
five (05) working days from the date of actual payment of bond interest.
2. In case of late transfer of nominal interest, the State
Treasury is responsible for paying the late payment fine to financial institutions
for the number of days of late payment at the late payment penalty interest
rate specified in Clause 2, Article 14 of this Circular.".
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“Article 17. Information disclosure
1. At the latest on the last working day of the week
immediately preceding the week of trading, the State Treasury shall publish
information on the website of the State Treasury about the expected schedule of
term repurchase of government bonds of the next trading week; and also provide
information to the Stock Exchange for posting on the Website of the Stock
Exchange.
2. No later than the 10th 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); and also provide
information to the Stock Exchange for posting on the website of the Stock
Exchange.”.
10. Certain
clauses of Article 18 is amended as follows:
a) Point c Clause 1 Article 18 is amended as follows:
“c) Provide information about the expected schedule of term
repurchase of government bonds of the next trading week and the results of term
repurchase of government bonds in the preceding month to the Stock Exchange
according to prescribed in Article 17 of this Circular.”.
b) Points c and d Clause 2 Article 18 is amended as follows:
“c) Provide information about the expected schedule of term
repurchase of government bonds of the next trading week and the results of term
repurchase of government bonds in the preceding month according to Article 17
of this Circular.
d) On a monthly basis, provide information on the term repurchase
of government bonds on the market (including: repurchase term of government
bonds, interest rate for term repurchase of government bonds, code of
government bonds, list price of government bonds, actual price of government
bonds, the government bond discount rate, the 1st trade value, the 2nd trade
value) for the State Treasury to serve the assessment of the market
situation.”.
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Term repurchase of government bonds with the payment date of
the first trade before the effective date of this Circular and the payment date
of the second trade after the effective date of this Circular shall continue to
be applied according to regulations of Circular No. 107/2020/TT-BTC dated
December 21, 2020 of the Minister of Finance on guidelines for the term
repurchase of government bonds using temporarily idle state funds of State
Treasury.
Article 3. Entry in force and implementation
1. This Circular comes into force from May 4, 2023
2. The State Treasury, relevant agencies, units,
organizations and individuals shall implement this Circular./.
PP. MINISTER
DEPUTY MINISTER
Cao Anh Tuan