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THE STATE BANK SOCIALIST REPUBLIC Of VIETNAM
Of VIETNAM Independence-freedom-Happiness
No.211/QD-NH1 htmlhtmlhtml--
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Hanoi, September 22,1994.
- Pursuant to the Decree No.15/CP dated March 2nd, 1993 of the Government on the tasks, powers and responsibilities for State management of the Ministries and Ministerial-ranking bodies.
- Pursuant to the Decision No.445/TTG dated August 23rd, 1994 of the Prime Minister of the Government on the issuance of State bank bonds.
- On the proposal of the Director of the Department for Economic Research.
DECIDES
Article 1
To promulgate in connection with this Decision the "Regulation on the issuance of State Bank bonds"
Article 2 :
This Decision shall come into effect from the signing date.
Article 3 :
The Chief of Governor's office, the Director of the Department for Economic Research, the Bank General Inspector, Heads of the units belonging to the Central Sate Bank, Directors of provincial and city State Banks, General Directors, Directors of Commercial Banks, Investment and Development Banks, joint-venture banks, branches of foreign banks in Vietnam and financial corporations are responsible for the implementation of this Decision.
for the Sate Bank of Vietnam The Governor
CAO SY KIEM (Signed)
State Bank bonds are receipts of interested, short-term loans issued by the Central State Bank to create instruments for managing the monetary market in accordance with the objectives of monetary policy in each period of time.
The State Bank is responsible for paying the bonds according to their maturity for the bond buyers (or bond owners)
Article 2
Client for buying State Bank bonds are State commercial banks, investment and development banks, stock banks, joint venture banks, branches of foreign banks, financial corporations (hereinafter referred to as credit organizations having money deposited accounts in the State Bank).
The buying of State Bank bonds is conducted on the basis of voluntary, but in necessary cases and for the purpose of stabilizing the monetary market, the Governor of the State Bank of Vietnam can stipulate the ratio of compulsory buying of St ate Bank bonds for credit organizations, this ratio is determined on the totally mobilized capital of the credit organizations.
Article 3
Each State Bank bond has a term of 1, 3, 6 or 9 months and is printed on special paper in the Bank Printing House in accordance with the form prescribed by the Governor of the State Bank of Vietnam.
Article 4
State Bank bonds are issued in Vietnamese dong (VND) with many denominations. The minimum bind denomination is VND 500 million and the maximum is VND 10,000 million. The total value of bank bonds issued on each occasion and the speci fic sizes of denomination are announced by the Governor of the State Bank before each occasion of bank bond issuing.
Article 5
During their fixed terms for transaction, State Bank bonds are freely sold and bought or used as collateral among credit organizations. The State Bank shall not commit itself to rebuy the bank bonds when they have not reached their maturity but it shall have the right to propose the rebuying prior to their maturity if it has reasons generated from the requirements of monetary policy.
Article 6
State Bank bonds are discounted. The State Bank shall sell bank bonds at prices lower than the denomination values. The gap between denomination value and selling price is the interest rate of a bank bond. The selling prices of bank b onds are formed on the relationship between demand for and supply of capital in a monetary market or defined by the Governor of the State Bank in accordance with the objective of the State Bank's monetary policy.
Article 7
form of State Bank bonds :
7.1-The front side of a State Bank Bond includes:
- A group of words : "The State Bank of Vietnam"
- The tittle : "State Bank Bond"
- Term of the bond
- Denomination of the bond
- Date of bond liquidating
- Place of bond liquidating
- Other legal factors such as bond code, series, the printed signature of the State Bank's Governor, the seal of the State Bank.
7.2-The back side of the bond is left blank to record those factors arising in case of buying or selling bank bonds such as name, address, seal of the credit organization being its first owner and the blank lines for writing names, addresses, seals of the credit organizations being its first, second etc... Owners and the contents of annotations and indications of the State Bank.
Article 8
State Bank Bonds are sold in the form of an auction. The auction can be conducted in either of two following ways:
- To hold a quantitative auction: the State Bank shall announce in advance the prices of bank bonds it is going to issue, the buyers will determine the total value of the bank bond quantities they want to buy and send the buying demands t o the State Bank. The State Bank shall consider and meet those demands on the basis of first come, first served. In the case that two or many buying demands arrive at the same time, the demand with the higher value shall be given priority, so that the total value of registered buying demands is in accordance with the total value of the bank bonds it plans to issue. In case of compulsion, the State Bank shall determine the quantity of bank bond's necessary for selling to credit organizations.
- To hold auction on selling price: the bond buyers determine the buying prices, quantities and send the demands to the State Bank. The accepted demands are those with higher buying prices and acceptable to the State Bank, so that the total value of the registered buying demands is in accordance with the total value of bank bonds it plans to issue.
Article 9
The buying demands for bank bonds by credit organization have to be made in accordance with the form and ways regulated by the State Bank and they must be sent to the Credit Department of the Central State Bank through its branches or its offi ces for business relations where the credit organizations open their main money deposited accounts before the deadline for buying registration determined by the Governor of the State Bank for each occasion of bank bond issuance.
Article 10
The State Bank shall open a State Bank Bond account so as to manage and control the total value of bank bonds issued on each occasion. The Department for Accounting - finance is obliged to open a State Bank bond issued account to record the mo ney received from the State Bank's offices for business relations and its branches by selling bank bonds, liquidating both the principals and interests when the bonds reach their maturity, liquidating and observe the blank bank bonds not yet i ssued.
Article 11
The cost of the issuance and paying of State Bank bonds interests are discounted from the operational cost by the State Bank.
Article 12
To conduct the issuance of State Bank bonds:
12.1-Based on the objective of the monetary policy and by observing the involvement of all instruments for payment, the Department for Economic Research shall work out a report on the quantity, value and term of bank bonds necessary to be i ssued on each specific occasion.
12.2-After the Governor approves the quantity and value of the bank bonds necessary to be issued, the Department for credit shall organize the following implementations:
12.2.1-To send the details relating to the occasion of bank bond issuance such as the quantity, value of the State Bank bonds going to be issued, the deadline for registration, ways of holding the auction...to the State Bank's offices for business relations and its branches for forwarding them to the main offices of the credit organizations which have main money deposited account in the State Bank.
12.2.2-To receive through the State Bank's Office for business relations and its branches the requests for buying bank bonds from the credit organizations and hold the auction in accordance with either of two ways as defined in Article 8 so a s to determine the selling price and the quantity of bank bonds to be sold to each credit organization.
12.2.3-Right after the auction, the Credit Department shall inform the State Bank's office for business relations and its branches, where credit organizations registered to buy bank bonds, of the auctioning result so that they can forward it to the credit organizations and conduct the debt recording into their accounts and at the same time hand over the bank bonds to the credit organizations whose requests for buying bank bonds have been accepted.
12.3-The State Bank's Office for business relations and State Bank's branches where the credit organizations open their main accounts bear the following responsibilities:
12.3.1-To inform the credit organizations of the contents of each occasion of issuing State Bank bonds.
12.3.2-To receive buying orders, to ratify the time of sending the orders, to ratify the residues of the accounts of the credit organizations which have sent the orders and send them to the State Bank's Credit Department within th e prescribed time of the central State Bank.
12.3.3-To synthesize the buying demands for the tentatively issued bank bonds and to work out the plan for receiving, calculating and observing the blank bank bonds from the Department for fund Generating of the Central State Bank.
12.3.4-One day after being informed by the Credit Department of the result of the auction on the State Bank bonds they have to accomplish the debt recording into the money deposited accounts and to hand over the State Bank bonds to the credit organizations whose requests for buying bank bonds have been accepted. In case, at the time of handing over the bank bonds, the credit organizations don't have enough money in their accounts, they shall have to pay a fine at a rate def ined by the State Bank.
12.3.5-To open a book for recording names of the credit organizations which buy bank bonds for the first time and the serial number of the bank bonds that have been bought.
12.3.6-To transfer the amount of money from selling the bank bonds of each issuing occasion to the Department for accounting finance of the State Bank. To conduct the liquidating of maturity bank bonds and make report on liquidating both the principals and interests to the Department for Accounting finance.
12.3.7-for the bank bonds bought on the basis of compulsion according to the decision of the Governor of the State Bank, after receiving the scheduled figures of buying bank bonds for each credit organization from the Credit Department the o ffice for business relations and the State Bank's branches where credit organizations being obliged to buy bank bonds open their accounts are responsible for recording debts into the money deposited accounts and handing over the bank bonds and at the same time conducting steps of calculation and observation as defined in the items 12.3.5 and 12.3.6 of this Decision.
Article 13
The Department for fund Generating is responsible for designing, printing and preserving State Bank bonds as with cash, for organizing and adjusting the supply of blank bank bonds so as to hand over to the credit organizations according to th e result of each auction.
Article 14
The regime of information reporting:
14.1-After finishing each sale auction on the bank bonds, the Credit Department takes responsibility for making a report to the Governor as well as to the Department for Economic Research and the Department for Accounting finance on the following matters:
- Quantity and price of bank bonds requested by credit organizations.
- The total value of the bank bonds sold out and quantity, value of bank bonds sold to each credit organization.
- Quantity and value of the bank bonds which are left after the sale and the buying demands which are not accepted.
14.2-After collecting the expire bank bonds, the State Bank's Office for business relations and State Bank's branches conduct calculations on the occasion of bank bond issuance with the Department for Accounting finance.
14.3-Every year, the Department for Accounting finance synthesizes the situations of State Bank bond issuance and report it to the Governor of the State Bank as well as to the Department for Economic Research.
Article 15 :
Any addition to and revision of this Decision shall be decide by the Governor of the State Bank.
for the State Bank of Vietnam The Governor of the State Bank.
CAO SY KIEM (Signed)