Tiếng Việt- 1 Decree no. 178-CP of October 28, 1994 on the tasks, powers and organization of the ministry of finance promulgated by the government
- 2 Decree no. 120-CP of September 17, 1994 promulgating the provisional regulations on the issue of bonds and shares of state-owned businesses promulgated by the Government
| THE MINISTRY OF FINANCE | SOCIALIST REPUBLIC OF VIET NAM |
| No: 1179-TC/KBNN | Hanoi, December 05, 1994 |
THE MINISTER OF FINANCE
Pursuant to Decree No.178-CP on the 26th of July, 1994 of the Government on the tasks and powers and the organization of the Ministry of Finance;
Pursuant to Decree No.72-CP on the 26th of July, 1994 of the Government on the promulgation of the Statute on the Issue of Government Bonds;
Pursuant to Decree No.120/CP on the 17th of September 1994 of the Government promulgating the Provisional Statute on the Issue of Stocks and Bonds of State-Owned Businesses;
After consulting with the Governor of the Vietnam State Bank,
DECIDES:
Article 2.- This Decision takes effect from the date of its signing.
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MINISTER OF FINANCE
Ho Te
ON THE BIDDING FOR GOVERNMENT BONDS AND BONDS OF STATE-OWNED BUSINESSES
(Promulgated together with Decision No.1179-TC/KBNN on the 5th of December, 1994 of the Minister of Finance)
Article 1.- The technical terms used in this Statute have the following meanings:
1. Bidding for Government bonds and bonds of State-owned businesses (hereunder referred to as bonds) is a form of issuing bonds at an interest rate to be determined by the bidding.
2. The administered interest rate is the maximum interest rate set for the bidding, to be announced by the organizer of the bidding in the bidding announcement.
3. The fixed interest rate is the interest rate of bonds which is used to calculate and pay interest to the owners of bonds when the payment of the bond interest is due, and which is to be announced by the organizer of the bidding in the bidding announcement.
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5. The bidding volume is the total value of the bonds which the bidder pledges to buy at the interest rate he/she had bid for.
6. The winning volume is the value of the bonds the bidder is entitled to buy as a result of his/her bid.
7. The price for the issue of bonds is the sum of money which the bidder must pay to the organizer of the bidding according to the results of the bidding.
8. The registered money is the sum of money which each bidder must advance to the organizer of the bidding to be eligible to take part in the bidding. The minimum sum must be 5% of the bid which the bidder intends to offer, and this sum carries no interest rate while being under registration. This sum of money shall be used (partly or wholly) to buy bonds (if the bidder wins), or returned to him/her (if he/she loses), or use to pay fine in case the bidder fails to pay to the organizer of the bidding on schedule.
Article 2.- The organizers of the bidding include:
- The Ministry of Finance, for treasury bonds and project bonds.
- The Ministry of Finance and the Central State Bank, for treasury credit bonds issued through the State Bank.
- The State-owned businesses to be named by the Ministry of Finance, for bonds of State-owned businesses.
Article 3.- The principles for the bidding for bonds:
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2. The bidding should be organized openly with all bidders enjoying equal rights and obligations.
3. The winning bidder has the right and obligation to buy the amount of bonds at the interest rate offered.
Article 4.- The bidders for bonds include:
- Vietnamese businesses in all branches and economic sectors, including commercial banks, credit organizations, financial companies, insurance companies, insurance funds, investment funds...
- Enterprises with foreign invested capital operating in conformity with the Law on Foreign Investment in Vietnam and the Ordinance on the Bank.
Article 5.- The bidders must meet the following conditions:
1. Having the juridical person status, being established in accordance with Vietnam's current law.
2. Having a bank account in Vietnamese Dong opened at the State Bank or Treasury.
3. Depositing the registered money in a bank account as required by the organizer of the bidding for bonds, one day before the opening of the bidding, as stipulated at Point 8, Article 1, of this Statute.
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5. Fully observing the procedures and stipulations of this Statute, and the specific announcements of the organizer of the bidding.
Article 7.- The notice of the bidding for bonds:
Seven days before the organization of a bidding, the organizer of the bidding for bonds must widely publicize the necessary information about the bidding through the mass media, including:
- The kind of bonds for bidding; the term; denomination; fixed interest rate; administered interest rate for the bidding.
- The total amount of capital needed.
- The deadline to register of the bidding.
- The address for reception of registration forms and bidding forms.
- The opening day and place of the bidding.
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- The place for advancing the registered money.
- The form of payment for the amount of bonds won in the bidding.
- The re-payment of the principal and interest of bonds when they are due.
- Other relevant in formation.
Article 11.- Determining the winning bid:
- The winning bid shall be determined by the increasing percentage of the interest rate offered, i.e. from the lowest interest rate to the highest interest rate within the administered interest rate, until the level is reached for the amount of capital needed.
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+ Method 1: The issuing price determined by the discount method.
By this method, instead of paying interest, the issuing price shall be set lower than the value of the bonds, and the bonds shall be repaid at their value when they are due. The formula for calculating the issuing price of the bonds is:
- G: The issuing price
- MG: The value of the winning bid.
- Lst : The interest rate of the winning bonds of each bidders.
- T: The term of bonds.
+ Method 2: The issuing price is determined by the method of fixed interest rate.
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- G: The issuing price.
- MG: The value of the winning bid.
- Lst: The winning interest rate.
- LsCD: the fixed interest rate.
- T: The term of the bonds.
- n: The number of interest payments within the term of the bonds.
Article 13.- Announcing the results of the bidding:
- The results of the bidding shall be announced at the close of the opening day of the bidding through the mass media, put up on the notice board of the Organizing Committee of the bidding, and sent to all the bidders the day after the opening day of the bidding.
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+ The number of valid bids and invalid bids; the number of winning bids.
+ The total volume of winning bonds, the lowest and the highest volumes of winning bonds.
+ The lowest, highest and average interest rates won.
- The results of the winning bidders (interest rate, the amount of bonds won, the issuing price) shall be made known directly to each winning bidder.
Article 14.- Payment for the volume of winning bonds:
- All the winning bidders must fully pay by cheque or by money transfer for the total volume of winning bonds within 2 working days after the bidding day.
- The date for issuing bonds comes just after the bidding day. At the same time, the winning bidders shall receive certificates of bonds or certificates of ownership of bonds (for the form of bonds bearing a serial number).
- The winning bidders who are found 1-5 days late in making payment as stipulate, shall be fined in accordance with the regime of late payment fine; the fine shall be taken from the registered money. Failure to make the payment within 5 days shall be taken for granted that the winning bidder has given up the winning bid, and all its registered money shall be handed over to the State budget.
Article 15.- Repaying the bonds when they are due:
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The Organizing Committee for the bidding of bonds is composed of 5-7 persons, including a Head, a Deputy-Head, members, and a secretary. The Ministry of Finance should be represented in the Organizing Committee for the bidding of bonds of State-owned businesses.
All the members of the Organizing Committee for the bidding of bonds must strictly keep secret all information of the bidders and the information about the bidding of bonds.
The Organizing Committee for the bidding of bonds has the tasks of:
+ Preparing and announcing the contents of the bidding.
+ Making public the conditions set for the bidders and checking whether they are qualified.
+ Receiving and checking the validity of registration forms and bidding forms.
+ Organizing the opening of the bidding, and determining the winning bid and the issuing price.
+ Announcing the results of the bidding.
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The treasury bonds issued through the State Bank in the form of bidding shall also observe this Statute and the specific guidance of the State Bank and the Ministry of Finance.
- 1 Official Dispatch No. 1354/BTC-TCNH dated January 24, 2014, about obligations, benefits, and criteria for assessment of bidders for Government bonds in 2014
- 2 Decree no. 120-CP of September 17, 1994 promulgating the provisional regulations on the issue of bonds and shares of state-owned businesses promulgated by the Government