Circular 100/2015/tt-Btc: Guidelines On The Release Of Local Government Bonds In The Domestic Market

Original Language Title: Thông tư 100/2015/TT-BTC: Hướng dẫn về phát hành trái phiếu Chính quyền địa phương tại thị trường trong nước

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Circular on issuance of local government bonds in the domestic market _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to the law on State budget of 16 December 2002;
Pursuant to the law on public debt management, June 17, 2009;
Pursuant to the law on securities, June 29, 2006, and the law on amendments and supplements to some articles of the law on securities on November 24th, 2010;
Pursuant to Decree No. 215/2013/ND-CP on December 23, 2013 the Government functions, tasks, powers and organizational structure of the Ministry of finance;
Pursuant to Decree No. 01/2010/ND-CP on January 5, 2011 by the Government on the release of government bonds, Government-guaranteed bonds and bonds of local government;
Pursuant to Decree No. 79/2010/ND-CP dated 14 July 2010 of the Government on public debt management services;
Proposal of the Director General, finance banks and financial institutions;
The Minister of Finance issued a circular about release local government bonds in the domestic market.
Chapter I GENERAL PROVISIONS article 1. Scope and objects 1. This circular instruction on the issuance of local government bonds in the domestic market.
2. application this circular object is the provincial people's Committee, the central cities, organizations and individuals related to the release of local government bonds in the domestic market.
Article 2. The subject released the subject bonds of local government is the people's committees, the central cities (hereafter referred to as the provincial people's Committee).
Article 3. The purpose of issuing local government bonds to be issued to the investment program for the project, subject to the provisions in paragraph 3 article 4 of Decree 01/2010/ND-CP on 05/01/2011 the Government issued Government bonds, Government-guaranteed bonds and bonds of local government (hereinafter referred to as the Decree No. 01/2010/ND-CP).
Article 4. Conditions issued to provincial people's Committee meets the conditions for issuing local government bonds prescribed in article 39 public debt management Law and article 24 of Decree 01/2010/ND-CP. Article 5. Terms of the bonds in addition to the terms and conditions of the bonds set forth in article 6 of Decree 01/2010/ND-CP, the subject released also must comply with the following rules: 1. Tenor released local government bonds have maturities from 1 year upwards. Specific term by the provincial people's Committee decided, in accordance with the needs of capital and the market conditions.
2. The face value of the bonds of local government bonds in denominations of one hundred thousand (100,000). Other denominations of local government bonds is a multiple of one hundred thousand (100,000).
3. release the volume volume released by every owner released the decision based on the needs of local capital, ability to mobilize capital in the market and must be in the limits of release has been granted regulatory approval authority in this circular.
4. Interest rates interest rate release issued by local government entities to release decision for each release but not exceed the frames of interest by the Ministry of finance regulations as specified in article 9 of this circular.
 
Chapter II APPROVAL of the PROJECT RELEASED the LOCAL GOVERNMENT BONDS article 6. The construction and approval of the project released the bonds of local government 1. When in need of raising capital through the issuance of government bonds to invest in the socio-economic development projects in social task of the provincial budget or the likely payback projects at local, provincial people's Committee to build the release scheme of local government bonds for each year the budget for submission to the Council people of the same level (provincial councils) for approval.
2. release scheme of local government bonds referred to in Paragraph 1 of this article include the following basic content: a) the purpose of issuing local government bonds as defined in article 3 of this circular, in particular: – investments in projects of economic and social development in the task of provincial budget; or-investing in projects likely to return; or-to invest in both projects the mission branch of the provincial budget and the project likely payback. In this case must clearly state the projected bond volume issued for each purpose.
b) information about the portfolio of investment projects in construction are provincial councils expected approval to use capital bonds, including: name of the project; the project's investment decisions are approved by the authority; capital source implementation projects; types of projects (projects of the economic and social development in the task of provincial budget or project likely payback).
c) report appraisal reviews about the potential payback of the project (the project's likely payback).
d) expected conditions, the provisions of the local government bonds including: mass; the term; the denomination; coins issued; interest on bonds; commitment of the issuer with respect to bond holders on ensuring the rights of bond holders as stipulated in clause 1 article 8 Decree No. 01/2010/ND-CP; terms of the acquisition, swap the local government bonds (if any).
DD) estimated time and release method of local government bonds.
e) mobilization and the situation the original repayment, interest on capital from all sources of provincial budget within 3 years of the adjacent budget before the expected release of the budget by each form of financing under the provisions of the law, including: residual debt financing at the beginning of the budget year; the total mobilized capital in years; the original repayment interest rate situation the terms of financing during the year; the source of the original debt payment, the interest rate the account of raising capital in the year (from the budget or revenues of the project); debt financing at the end of the budget year and at the time of construction of the project released the g-local government bonds) the total maximum financing limit allowed the mobilization of the provincial budget at the time of construction of the project as defined in the law on State budget Public debt management Law, and guidance documents;
h) scheme arranged payment bond interest rates capital every year and the root bonds when due;
I) expected the information provided to investors ahead of the release of bonds under the provisions of article 8 of this circular.
3. release scheme of local government bonds to be provincial people's Council review and approval. The case of the provincial people's Council approved the policy, raising capital and limit assigned to the people's Council granted the review, approval of the project released the local government bonds, this content must be stated clearly in the resolution by the provincial people's Council issued under the provisions of law on organization of people's councils and people's committees and Resolution No. 753/NQ-UBTVQH11 on 02/4/2005 of the Commission of the National Assembly promulgated the regulations of the people's Council.
Article 7. Approved the scheme issued by the Ministry of finance 1. After the provincial people's Council approval of the project bonds as defined in paragraph 3 article 6 of this circular, the provincial people's Committee sent the recommended records released the local government bonds to finance review, comments before the issuer. The Finance Ministry sent records include: a) the suggested text released local government bonds according to the model in annex 1 attached to this circular;
b) release scheme of local government bonds prescribed in clause 1 and clause 2 article 6 of this circular;
c) text approved the release scheme of local government bonds of the provincial people's Council or standing provincial councils according to the provisions in paragraph 3 article 6 of this circular;
d) resolutions of the provincial people's Council approves the budget estimates of the expected year of provincial bonds, which stated the total investment capital construction in the country.
DD) list of projects of economic and social development in the mission branch of the provincial budget in five (05) years plans were provincial councils for approval.
2. After receiving the application prescribed in Paragraph 1 of this article, within twenty (20) working days, the Ministry of finance, the review of the opinion for the release scheme of local government bonds. Content review, comments include: a) bond release conditions;
b) option bond release;
c) financing limit allowed by provincial budget according to the provisions of the law on the State budget, public debt management Law and guidance documents;
d) maximum allowed volume of bonds (with respect to the likely payback projects locally).
3. The Ministry of Finance reported comments in writing to the release scheme of local government bonds according to the content of the provisions in Paragraph 2 of this Article to the provincial people's Committee of the issuer of bonds under the provisions of this circular. The case is not eligible to be released, the Ministry of Finance announced in writing and stating the reason.
 
Chapter III ORGANIZATION of the LOCAL GOVERNMENT BONDS section 1. ISSUING LOCAL GOVERNMENT BONDS article 8. Publication information before the release 1. At the latest five (5) working days before the scheduled tender bonds, or at the latest within ten (10) working days before the date of the issuer under the bonds guarantee method, release agents, the provincial people's Committee has the responsibility to publish the basic information about release local government bonds on electronic information page of the people's Committee level the province, or of the Department of finance or of the organization authorized to perform the professional bonds or securities exchange's tender place.
2. Content of information disclosure as defined in paragraph 1 of this article are: a) issued subject b) bond issuance purposes;

c) condition, terms of bonds (including: mass; term; denominations; the original method of payment, interest rates; the terms of the acquisition, swap the bonds if available);
d) time, the method of issuing bonds;
the expected Source of repayment), interest on the bonds when due;
e) portfolio is expected to use capital bonds, which stated investment projects in economic and social development task of the provincial budget; or project likely payback.
g) situation of raising capital and repayment of interest, provincial budget within 3 years of the adjacent budget before the budget issue from all sources, including sources of raising capital through issuing local government bonds (if any); debt of the provincial budget from all sources at the time of the scheduled release of the bond.
h) settlement currency, the provincial budget or the estimated currency-provincial budget (if not already have settlement figures were approved by the authorized) of 3 adjacent budget before the budget issue, which stated the total currency provincial budget balance total spending, balancing the provincial budget (including the total regular expenditure, the total construction investment spending).
I) estimation of revenue-spending provincial budgets were provincial councils through the year's expected release of local government bonds, which stated the total currency balance provincial budget, the total spent on balancing the provincial budget (including the total regular expenditure, the total construction investment spending).
Article 9. Interest on bonds of local government 1. The latest is fifteen (15) working days before the date of organization of the local government bonds, provincial people's Committee sent written notice issued plans to the Finance Ministry to announce interest rate framework released local government bonds. Message text must release plan stating the following: a) the expected time the issuer;
b) projected volume, duration, form and method of issuing bonds.
2. At the latest within seven (7) working days from the date of the written notice issued plans in paragraph 1 of this article, The particulars of the financial frame of interest issued to provincial people's committees organized under the provisions of this circular.
3. Based on the frame of interest by the Ministry of finance prescribed in clause 2 of this Thing and the market situation at the time of release, the provincial people's Committee decided to release the bond interest.
Article 10. Issuing local government bonds according to the method of tender 1. The tender bond of local government, was held in the stock exchange where the tender held in government bonds.
2. The principle of the Organization fight spectacle, the tender form, the object involved in the bidding process, the tender procedure, the method of determining the tender results, the method of payment of money to buy bonds to be applied according to the regulations on issuing Government bonds, according to the method of bidding in stock trading.
Article 11. Issuing local government bonds by underwriting method: 1. principles released: a) the provincial people's Committee issued under the guarantee methods for organizing a major guarantee or the guarantee for its members (hereinafter referred to as the complex of guarantee) is eligible under the provisions of this circular.
b) for cases released under guarantee for a principal guarantee Organization Committee or provincial organizations are authorized to negotiate directly with the main guarantee organization to unify the volume, term, interest rates and underwriting fees for each release. The main guarantee organization can buy for yourself or the distribution of bonds to the customer under the agreement.
c) for release under guarantor for the bail, the provincial people's Committee or organization is authorized to negotiate directly with the members of the guarantee the guarantee or the negotiations with the representatives of the guarantor (if combination guarantees representation) of the volume the term, interest rate, and underwriting fees for each release. Guarantee members can purchase bonds for yourself or the distribution of bonds to customers.
2. conditions to become the main guarantee organization or member combination guarantees, rights, obligations, process choice of guarantee and guarantee combination members, processes the payment process, hordes of money to buy bonds is done according to the rules in Appendix 2 of this circular.
Article 12. Issuing local government bonds according to the method of release agents 1. The provincial people's Committee or organization authorized to issue the selection of qualified organizations to release agents, agents of the original payment, interest on the bonds.
2. selection procedure process release agents, agents of the original payment, interest on the bonds, the issuer processes the local government bonds according to the method of release agent applied according to the process of issuing Government bonds, according to the method of release agent.
Article 13. Registration, custody and listed bonds 1. Local government bonds are registered, centralized depository, clearing in the Vietnam securities depository Center and listed, focused in securities trading at the request of the subject.
2. custody, registration process and listing of local government bonds to be applied as the registration process, save up and listing of government bonds.
Section 2. ACQUISITION and PERSONAL CONVERSION for LOCAL GOVERNMENT BONDS article 14. Buy back bonds 1. The provincial people's Committee can buy back the bonds before maturity to reduce debt or obligation to restructure debt under the scheme was approved by the authority. Granted approval of the project released the local government bonds under the provisions of this circular is to grant approval to buy back Government bonds.
2. provincial people's Committee process, the procedures to buy back Government bonds to make the acquisition of the local government bonds.
3. provincial people's Committee responsible for the effect of the acquisition of the local government bonds and Finance Ministry report about results of the acquisition in accordance with article 25 of this circular.
Article 15. Bond swaps rules 1. The provincial people's Committee could swap bonds to restructure debt. The bond swaps to ensure compliance with the following principles: a) follow the bond swap plan was approved and authorized by the Ministry of finance have comments in writing. Authority approval of the project released the local government bonds is also granted approval swap bonds.
b) ensure the horizontal principles of value under market value, publicity and transparency in the swap.
c) guarantee after total outstanding bond swap capital mobilization of provincial budget does not exceed capital mobilization as prescribed in the law on the State budget, public debt management Law and guidance documents.
d) bonds being swapped as term bonds remaining from a year or more and save up in Central Vietnam securities depository.
2. In the time swap bonds (since the time of the registration of swap to end the swap the bonds), the bonds are in circulation be swap will be blockaded on the custody account of bond holders as required by the provincial people's Committee.
Article 16. The method to swap the bonds 1. The bond swap conducted under one of the two following methods: a) the provincial people's Committee issued new bonds to swap bonds are circulating.
b) provincial peoples Committee issued additional volume of certain bonds according to the conditions, the terms of the bonds are circulating to swap for a bond are in circulation.
2. provincial people's Committee decision method to swap the bonds and publicly about the method to swap the bonds.
Article 17. The bond swap approach 1. The bond swap plan should include the following basic content: a bond swap purpose);
b) conditions, the terms of the bond expected to be swapped (the code, the amount of bonds being bonds swap, release date, due date, nominal interest rates, bond interest payment method);
c) conditions, the terms of the bond expected to be swap-bond case released the additional conditions, terms included: release date; the due date; nominal interest rate; bond interest payment.
-Case of the bonds first issued, condition, terms included: release expected; the expected term; principles determine the nominal interest rate; bond interest payment.
DD) Organization expected time made the bond swap.
e) mobilizing and limit expected residual debt financing of the provincial budget before and after executing the bond swap.
2. After the bond swap approach prescribed in paragraph 1 of this article are approved by the authority, the provincial people's Committee sent bond swaps to approach the Finance Ministry review, comments on the content:-the volume of the bond swap.
-Mobilizing and limit debt financing of the provincial budget before and after executing the bond swap.
-Conditions, terms of the bonds were convertible terms and conditions of the bond expected to be swapped.
Article 18. The interest rate discount bond 1. The Ministry of Finance decided to frame the discount interest rate to determine the price of the bonds being convertible and bond prices are swapped out every swap.
2. provincial people's committees to negotiate and United with the bond holders on the interest rate discount but must ensure is in the frame of the interest because of the Ministry of Finance decided in paragraph 1 of this article.
Article 19. Processes to swap bonds and fees 1. Procedures, fees of swap and the determination of the local government bonds prices were swap apply according to the procedures, fees and how to identify the price of government bonds being swapped.

2. provincial people's Committee responsible for the effectiveness of the swap the bonds of local government and the Ministry of finance reports on the results swap bonds prescribed in article 25 of this circular.
 
Chapter IV PAYMENT INTEREST RATES, bonds, ACCOUNTING REGIME, charges and FEES PAYMENT RELEASE BONDS article 20. Payment of interest on the original bonds, 1. The owner is responsible for issuing payments, interest rate the bonds when due by the legitimate capital.
2. With regard to the programs and projects for socio-economic development in the mission branch of the provincial budget, sources of payment, interest on the bonds is guaranteed from the provincial budget.
3. With respect to the program, the investment project likely payback at the source of payment, local interest rates, bonds from the legitimate source of revenue of the program, this project. The case of project revenues do not afford the interest payments, bonds, provincial people's Committee has the responsibility to arrange the source from the provincial budget to pay.
Article 21. Issue fee and interest charges, original issue Premium Bonds bidding Fees, underwriting fees and dealer charges released local government bonds to be agreement between the provincial people's Committee and the tender guarantee, dealer bonds. The release rate of local government bonds of each method of the maximum fees of government bond issuance applies to that method in the domestic market under the current rules.
2. the original charges, interest Charges to the original payment bonds, local government bond interest rates are applied with the original payments, interest rate Government bonds under current rules.
3. The source of payment, the interest rate payment charge release, original local government bonds are secured from provincial budget.
Article 22. Accounting mode owner release and the relevant units responsible for oversee the Organization of accounting pursuant to the accounting Act, the law on State budget and legal documents related to the current accounting regime.
 
Chapter V the MODE information, Report 23. Quick report results each release within seven (7) working days from the end date of each issue local government bonds, provincial people's Committee of Finance Ministry report detailed results released to General, track. The content report form in annex 3 to this circular.
Article 24. Periodic reports and report irregular 1. Within thirty (30) days after the end of the budget year, the provincial people's Committee has the responsibility to report the situation, interest rate, repayment of the original debt of local government bonds by writing to the Ministry of finance to follow according to the model in annex 3 to this circular.
2. In addition to the periodic report contents prescribed in paragraph 1 of this article, the provincial people's Committee has the responsibility to submit the report at the request of the Ministry of finance in some cases.
Article 25. Reported the acquisition, swap the bonds within seven (7) working days after the acquisition or swap local government bonds under the provisions of this circular and the related regulations, the provincial people's Committee must report the Ministry of Finance according to the following : 1. Item and the volume of bonds were purchased; the code and the volume of the bonds to be exchanged; the code and the volume of the bonds being swapped.
2. Interest rate swaps interest rate or buy back bonds corresponding to each bond code.
3. The level of debt financing of the provincial budget, outstanding local government bonds after making acquisitions, swap.
Article 26. Disclosure of information after the end of the release at the latest seven (7) working days after the end of the release of local government bonds, provincial people's Committee has the responsibility to publish information about the release of results of the local government bonds including volume, term and interest rate bonds on the electronic page of the provincial people's Committee , or of the Department of finance, the organization is authorized to perform the professional bonds, or of the stock.
Article 27. Publish information annually during the period from the time of issuing the bonds to bond to, every year, the provincial people's Committee has the responsibility for the information published on the website of the provincial people's Committee or the Department of finance and the organization authorized to perform the professional publishing and electronic page of stock trading. The content of the information published annually include: a) the estimation of incomes and expenses budget, provincial people's Council was granted the approval of the budget within sixty (60) days from the date of the provincial people's Council approves budget revenue estimates of the budget year; which stated the total currency balance provincial budget, the total spent on balancing the provincial budget (details under the total regular expenditure, the total construction investment spending).
b) settlement currency, the provincial budget has been the people's Council approved the same level of the previous year budget year within the adjacent sixty (60) days from the date of the provincial people's Council approved the settlement currency of the provincial budget in the budget; which stated the total currency balance provincial budget, the total spent on balancing the provincial budget (details under the total regular expenditure, the total spent on basic construction investment and the repayment of the original interest rate, financing).
 
Chapter VI HANDLING of VIOLATIONS in the PROCESS of ISSUING the BONDS Article 28. The suspension of the release of local government bonds 1. The Ministry of Finance made the suspension of the release of local government bonds in the following cases: a) the provincial people's Committee does not perform according to the release issued projects have been approved by the authority in accordance with the provisions of this circular.
b) the interest of the local government bonds issued in excess of the frame by the Ministry of finance interest rate announcement.
c) released volume volume allowed release as specified in Clause 3 5 of this circular.
2. The suspension of the release is applied to the release made breach referred to in Paragraph 1 of this article and the next release (if any) of the mass release of the provincial people's Committee has been approved by the authority.
3. Upon receiving the notice of the Ministry of finance, provincial people's Committee to implement immediately the suspension of issuing bonds.
Article 29. Handle violation of organizations and individuals involved in the process of implementing the release of local government bonds have violations of the provisions of this circular, depending on the behavior and the level of violation will be considered processed in accordance with the current legislation.
 
Chapter VII LIABILITY of the AGENCY in RELATION to article 30. The responsibility of the Ministry of finance 1. Perform the tasks specified in article 7, article 9, article 15, article 17, article 28 of this circular.
2. Aggregated tracking information regimes, report on the situation, the original interest rate, repayment of local government bonds of the provincial people's Committee as prescribed in this circular.
Article 31. The responsibility of the provincial people's Council 1. Approve or authorize the people's Council granted the approval of the project released the local government bonds under the provisions of this circular.
2. Approval to buy back the bonds before maturity or convertible bonds due to the provincial people's Committee as defined in article 14, article 15 of this circular.
3. Supervising the mobilization, management and use of local government bond capital, repayment of debt, the interest rate the bonds when due or oversee the acquisition, swap the bonds under the provisions of this circular.
Article 32. The responsibility of the provincial people Committee 1. Build the project to issue local government loan repayment plan, the provincial people's Council approval and completion bond issuance of local government Ministry of finance submitted comments as prescribed in this circular.
2. The provincial people's Council or standing provincial people's Council approval of the project released the local government bonds.
3. Bear full responsibility for the accuracy and honesty of the figures stated in the release scheme of local government bonds. Responsible for the assessment of the ability of the project payback payback ability and ability to repay the interest, of the provincial budget for projects in the task of provincial budget.
4. Build options purchased, swap the local government bonds the authority approved and implemented under the provisions of this circular.
5. Issuers of bonds for local governments as prescribed in this circular.
6. Use of capital from the issuance of bonds for your purposes, effective as prescribed by the law on the State budget and public debt management Law and guidance documents; fully responsible for the use which bonds under the provisions of the law.
7. Balancing the provincial budget to guarantee the debt payment source interest, the original debt of local government bonds when due for release of local government bonds to invest in projects in the task of provincial budgets and for cases of likely project payback but revenues of the program This project, not enough debt interest payments, the original debt bonds under the provisions of this circular.
8. Tracking, monitoring the use of the proper capital purposes, effectively withdrawing capital to pay the debt for investment projects capable of payback.
 
Chapter VIII IMPLEMENTATION Article 33. Terms of implementation 1. This circular is in effect from October 1, 2015 08.
2. This circular replaces circular No. 81/2012/TT-BTC dated May 22, 2012 of the Ministry of finance guidelines on issuing local government bonds in the domestic market.
3. In the process of implementing, if there are difficulties and obstacles, the provincial people's Committee and the relevant divisions of timely reporting to the Ministry of finance to review specific instructions./.