Circular No. 113/2012/tt-Btc: Detailed Rules On Investment Activities To Preserve And Increase The Insurance Fund By The Vietnam Social Insurance Management

Original Language Title: Thông tư 113/2012/TT-BTC: Quy định chi tiết về hoạt động đầu tư để bảo toàn và tăng trưởng các quỹ bảo hiểm do Bảo hiểm xã hội Việt Nam quản lý

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CIRCULAR detailed rules on investment activities to preserve and increase the insurance fund by the Vietnam social insurance administration _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to Decree No. 118/2008/ND-CP on November 27, 2008 of the Government functions, tasks, powers and organizational structure of the Ministry of finance;
Pursuant to decision No. 4/2011/QD-TTg on January 20, 2011 of the Prime financial management for social insurance of Vietnam;
Proposal of the Director General, administrative financial career, the Minister of Finance issued a circular detailing the terms of investment activities to preserve and increase the insurance fund by the Vietnam social insurance management.
Article 1. The scope, subjects of application 1. This circular process regulations, procedures for performing investment activities to preserve and increase the insurance fund by the Vietnam social insurance management, including: compulsory social insurance fund, voluntary social insurance fund, unemployment insurance fund, the health insurance fund (hereinafter abbreviated as the Insurance Fund).
2. This circular apply to Vietnam and the social insurance agencies, organizations, individuals related to investment activities to preserve and increase the insurance fund by the Vietnam social insurance management.
Article 2. Capital investing activities 1. Capital investment annual growth of social insurance in Vietnam is the full amount of temporarily idle from the insurance fund by the Vietnam social insurance management.
2. social insurance in Vietnam is responsible for focusing the account currency, the balance, the insurance fund and determine the amount of idle and then temporarily to perform investment activities to preserve and increase the Insurance Fund according to the regulations.
Article 3. Building investment projects as defined in paragraph 4 Article 7 decision No 04/2011/QD-TTg of 1. The base situation of socio-economic development, principles and forms of investments under the provisions of the law on social insurance, Vietnam investment projects construction process approved by the Management Board, the contents include: a) reviews the implementation of the investment activities of the previous year estimated this year, according to the general criteria and details under each form of investment, including the investment balances, investment amount, the amount of debt collection (original, interest), investment interest rates.
b) projected investment in content in the plan according to the General and detailed targets under each of the priority forms of investment, including the investment amount, term investments, investment interest, the amount of debt collection (original, interest rates), the outstanding balance of investment last year.
2. Time building investment projects are implemented together with financial planning period under the rules and are combined in the financial plan of the Vietnam social insurance.
3. To base investment projects have been approved by the Management Board, social insurance organization Vietnam make investments according to the prescribed regimes. In the process of implementation, if it deems it necessary to adjust or complement investment projects aimed at improving the efficiency, the Vietnam social insurance management board reports reviewed, translated.
Article 4. Process, the procedure for the State budget according to the provisions in clause 1 article 8 of decision No. 04/2011/QD-TTg of 1. Loan rates, loan term, loan interest rates: a) the level of lending by the General Director of Vietnam's social insurance decision based on the needs of the State budget loans and investment projects in the year has been approved by the Management Board.
b) the loan term is calculated from the date of loan to debt collection day; specific loan term of each loan contract by the Vietnam social insurance and the Ministry of finance the deal but must not exceed 10 years.
c) lending rate for each loan with interest rates Government bonds with the same term of the loan at the time of release. The case at the time the bidding is not lending or underwriting Government bonds of the same term, the interest rate will by Chairman of the Board of management decisions.
With regard to the time limit on loan for 5 years, 5 years recurring/one time, Vietnam social insurance and the Ministry of finance to consider adjusting interest rates of lending accordingly to ensure the rights of the parties.
2. Processes, procedures for the loan: a loan demand), the Ministry of Finance has proposed the loan documents sent to the social insurance of Vietnam, which stated the level of borrowing, loan term, loan number, purpose of loan use, specific time to transfer money.
b) within a maximum of 5 working days from the date of receiving the written recommendation of the Ministry of finance loans (by date of recording in the dispatch to mark of the unit), Vietnam social security check, against the quota for the State budget borrowing during the year has been through Management Council If appropriate, consider the lending decisions; the case is not settled, the loan must have a written answer to the Ministry of finance and stating the reason.
c) lenders must be made in the contract, which clearly: loan rates, loan term, interest rate, loan purpose use and other related agreements (created according to the model No. 1 attached to this circular).
d) based loan contract has been signed, Vietnam social insurance to transfer the loan amount to the account of the State budget.
3. Debt collection: a) the original Amount to be paid when due.
b) interest to be paid annually on the outstanding balance of loan and loan interest rate stated in the contract; the time of the payment of interest on the round years from when the Finance Ministry received the loan. The formula: the amount of the annual payment interest rate = interest rate x loan lenders (%/year) c) due to the original repayment cases coincides with the time the Finance Ministry focus to mobilize resources to implement the policy, the urgent tasks of the State, the social insurance of Vietnam considers the extension of the debt or extend the time adjustment of the loan on the basis of the proposal of the The Ministry of finance.
Article 5. Process, the procedure for State commercial banks, Development Bank of Vietnam Bank for social policy, as defined in clause 2 article 8 of decision No. 04/2011/QD-TTg of 1. Object loans (hereinafter referred to as the borrower), including: a) State commercial banks, including:-commercial banks in the country are established, organized in the form of joint-stock companies in which the State owns over 50% of the Charter capital;
-State commercial banks are established, organized in the form of limited liability company in a Member State by the owner of 100% of the capital.
b) Vietnam Development Bank.
c) social policy Bank.
2. Loan Rates, loan term, loan interest rates: a) the level of lending by the General Director of Vietnam decided to social insurance based on the demand for loans, the borrower's repayment ability and investment projects in the year has been approved by the Management Board.
b) the loan term is calculated from the date of loan to debt collection day; specific loan term of each loan contract by the Vietnam social insurance and borrower agreement but must not exceed 5 years.
To improve the efficiency of investment, maximizes the funds temporarily idle time in the year, Vietnam social insurance initiative in applying for the loan period (day, week, month, year), depending on the borrower's false but must ensure safety guidelines capital recovery, efficient, on time, at the same time not affect investment plans by other forms have been approved by the Management Board.
c) lending rate: interest rate for loans by the parties to the agreement but not lower the interest rate the average mobilization of the same tenor of the four transaction or branch in the city of Hanoi in the four State commercial banks respectively at the time of lending. The formula determines the following: interest rates average mobilization of the same tenor of the four transaction or commercial bank branch State (%/year) = L1 + L2 + L3 + L4 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4 where: L1, L2, L3, L4 turn is the interest raised in the same period of the four transaction or branch in the city of Hanoi in the four State commercial banks following correspondence at the time of lending: industrial and commercial joint stock Bank in Vietnam, Vietnam commercial joint stock Bank, Bank for investment and development of Vietnam, Bank for agriculture and rural development of Vietnam. The selection of the four transaction or the aforesaid branch by the General Director of Vietnam's social insurance decision.
To cater for the inspection, inspection of the investment activities of the competent State authorities are favouring social insurance, Vietnam must open fully record the interest the mobilization of four transaction or commercial bank branch State has options to determine the interest rate for loans or loan interest rate adjustment (original or a photo or a fax).
d) adjust the interest rate for the loan:-during the duration of the loan contract, when the interest rate the average mobilization of the same tenor of the four transaction or branch in the city of Hanoi has volatility increased or decreased to 30% in comparison with the interest rate of the contract is in effect, the social insurance of Vietnam and the borrower to consider adjusting interest rates for loans According to the corresponding rate to ensure the rights of the parties.
-Social insurance of Vietnam when determining loan interest rate based on the interest rate the average mobilization of the same tenor of the four transaction or commercial bank branch State would, then adjust the loan interest rates must also be based on the interest rate the average mobilization of the same tenor of the four transaction or commercial bank branch State there.
past due interest) by 150% the interest rate for the loan at the time to repay.
3. process, lending procedures: a) When demand loans, the borrower of the loan proposal writing to send social insurance Vietnam, which stated: the outstanding balance of loans for social insurance are Vietnam, loan rates, loan term, loan number and the time the money chain.

b) within a maximum of 10 working days from the date of receiving the written recommendation of the borrower (by date of recording in the dispatch to mark of the unit), Vietnam social security check, verify, if subject to loans under the rules then decide whether loans; the case is not settled, the loan must have a written reply for the borrower and stating the reason.
c) procedure for loans: The loan must be made in the contract (created according to the model No. 2 attached to this circular). Depending on the specific conditions of the loan object, on the unification of additional specific terms in the contract but not contrary to the provisions in article 8 of decision No. 04/2011/QD-TTg on January 20, 2011 of the Prime Minister and this circular.
4. Debt collection: a) the original Amount to be paid when due.
b) interest are the monthly payment on the loan or debt balance outstanding of each loan and the interest rate for the loan at the time of due interest; the time of the payment of interest on the round, counted from when the borrower receives the loan. For short term loans under 3 months, interest is paid monthly or once along with debt collection root, depending on the agreement of the parties but are clearly in the loan contract. The formula: amount of interest paid = interest rate x loan lenders (%/year) x number of days of actual loans _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 360 5. The extension of debt relief, loans back: a) prior to the original 30-day repayment term, if the borrower needs to extend the loans or debt must have written recommendations and objectives articulate the reason, Vietnam social insurance submitted consider the settlement.
b) within a maximum of 5 working days from the date of receipt of the borrower (by date of recording in the dispatch to mark of the unit), Vietnam social insurance review, if agreed then to extend the debt or loan, stated do not agree, they must have written answers for the borrower and stating the reason.
c) social insurance case Vietnam agrees to extend the term of the debt or loan, do the following:-the case for renewal of debt: Each loan was solved only for renewal of the debt once with maximum term of not more than 6 months, the time limit for the extension of specific debt does not exceed the duration of the loan contract was.
-Loan case back: the borrower is not the original repayment but must pay off the interest of the loan contract, after that the represents the social insurance agreement on unified Vietnam loan term, loan interest and repeat contracts for the loan. New loan contract base was signed, Vietnam set up social insurance vouchers to transfer your original debt collection contract to the lender and the new contract; the deadline for the loan in the new contract are calculated from the due date of repayment of the loan contract.
6. with regard to the processing of cases before the repayment date, overdue debt: a) during the implementation of the contract for the loan, the borrower has the right to return the previous capital limit, but must pay the full interest rate for the remainder of the loan term loan contract corresponds with the original amount of repayment before maturity and interest rates of loans in application at the time of repayment before maturity. The formula: amount of interest paid = original amount charged before limitation x lending rate (%/year) x number of days in advance of date _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (date) 360 b) due interest, if the borrower fails to pay or not to pay the full interest rate in accordance with the pay enough interest not yet payable, interest for delay interest charged according to interest overdue by 150% interest rate loan at the time of the corresponding interest rate due to the slow time charged. Calculation of interest: amount of interest paid = interest rate Of slow slow to pay past due interest rate x (%/year) x number of days slowly charged interest _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (date) c 360) To repay the root, if the borrower fails to pay or not to pay the full amount of the original loan, the same with the pay the original amount borrowed, the interest for the original amount paid in interest on overdue slowly by 150% the interest rate at the time of the loan to repay corresponds to slow time charged. The formula: overdue interest = original slow Debt pay overdue interest rate x (%/year) x number of days slowly charged root _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (date) 360 6. Process for investment other investment forms prescribed in clause 2 article 7 decision No 04/2011/QD-TTg of 1. The investment in the form of buying bonds, bills, bonds of the State, of State commercial bank: a) investment conditions is a must in your portfolio and investment level in scope during the year has been approved by the Management Board.
b) investment interest rates follow bond interest rates, bonds, bills by State commercial banks, State regulation or the bidding interest through the securities market under the provisions of the law.
c) regulations on the transfer of money, payment of interest, bonds, bills, bonds are made according to the regulations of the State and of State commercial bank about the release of bonds, bills, bonds.
2. Investing in the construction of national key economic projects in greater need of capital due to the Prime Minister decides: a) conditions to make investments, including:-Must be the key economic countries, projects have been approved by the Government and the Prime Minister decided to invest , capital investment of resources by the Vietnam social insurance management.
-Must be in the portfolio and investment level in scope during the year has been approved by the Management Board.
b) regulations on investment method, method of payment, organize implementation, inspection and monitoring mechanism to ensure the use of correct capital purposes, and other related content are done in separate rules text of the Prime Minister and the resolution of the Board of management for each specific case.
Article 7. Effect 1. This circular has effect as from September 1, 2012.
2. With regard to the loan contract was signed prior to the date of this circular in force enforced, Vietnam social insurance and borrower continues to follow the agreement signed for the remainder of the term of the contract or loan agreement amended and supplemented in accordance with the provisions of article 8 of decision No. 04/2011/QD-TTg on 20/01/2011 player Prime and this circular.
Article 8. Implementation 1. Social lending Vietnam insurance must follow the right loan objects specified in point b of paragraph 2 article 7 decision No 04/2011/QD-TTg on January 20, 2011 of the Prime and the provisions of this circular. The lenders with respect to the specific case as directed by the Prime Minister (if any) made under separate rules text of Prime and apply procedures for the loan under the provisions of this circular.
2. Monthly, investment management and fund accounting, social security in Vietnam made against the loan amount, the currency of the debt incurred in March and the outstanding balance of each object for the borrower to urge the borrower to repay (the original money, interest rates) on time, guaranteed loans management are closely.
3. The Director General of social insurance in Vietnam directed officers to make frequently updated fund investment information about interest rates Government bonds and interest rate of mobilization of the transaction, the branch of the State Bank in Hanoi to serve for the selection determines the interest rate for loans or loan interest rate adjustments survey practice, improve investment performance.