IT ' S SMART

Guidance on the release of local government bonds in the domestic market.

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State Budget Law December 16, 2002;

The Public Debt Management Law Base June 17, 2009;

The Securities Law Base on June 29, 2006 and the Amendment Law, added a number of provisions of the Securities Law on November 24, 2010;

Base of Protocol 118 /2008/NĐ-CP November 27, 2008 of the Government on the Functional Regulation, the mission and the organizational structure of the Ministry of Finance;

Base of Protocol 01 /2011/NĐ-CP January 5, 2011of the Government on the release of Government bonds, bonds are secured by the Government and local government bonds;

At the suggestion of the Chief Financial Officer of the banks and financial institutions;

The Minister of Finance issued a guide to the release of local government bonds in the domestic market. .

Chapter I

GENERAL REGULATION

What? 1. The adjustment range

This information instructs the release of local government bonds in the domestic market.

What? 2. Subject releases

The subject of local government bonds was the Provincial People's Committee, the Central Committee of the Central Committee (later called the Provincial People's Committee).

What? 3. The purpose of release

Local government bonds are issued for investment for programs, the project of the specified object at Clause 3 Article 4 of the number of resolutions. 01 /2011/NĐ-CP On 05/01/2011 the Government on the release of Government bonds, bonds are held by the Government of the Government and local government bonds (then called the Digital Protocol). 01 /2011/NĐ-CP).

What? 4. Bonds.

The Provincial People ' s Committee must fully respond to the conditions of issuing local government bonds stipulated at Article 39 of the Public Debt Management Law and Article 24 No. 24. 01 /2011/NĐ-CP.

What? 5. Articles of bonds

In addition to the terms and bond conditions prescribed at Article 6 of the Digital Protocol 01 /2011/ND-CP, The subject of the release must comply with the following regulations:

1.

Local government bonds have a term of 1 year or more. The specific term is decided by the Provincial People's Committee, in accordance with the need for capital use and market conditions.

2. The bond price

Local government bonds are a hundred thousand (100,000) copper. Other denominations of local government bonds are multiples of a hundred thousand (100,000) copper.

3. Volume of release

The volume of each issue issued by the host decided to base the need for local capital, the capacity to raise capital on the market, and must be within the limits of issued issued by the authorities under the regulatory authority.

4. The Interest Rate

Interest rates issue local government bonds issued by the subject of the decision to each release but are not overtaken by the interest bracket prescribed by the Ministry of Finance in accordance with this Information.

What? 6. Buy the bonds

1. The subject of local government bonds may be able to buy back bonds to reduce debt obligations or to restructure debt under the proposed jurisdiction. The level of approval of local government bonds by regulation at the same time is the level of approval of the local government bond.

2. The subject of a process application, the procedure to purchase government bonds to make a purchase of local government bonds.

3. The release subject is responsible for the effectiveness of the acquisition of local government bonds and the Ministry of Finance report on the results of the bond acquisition by regulation at Article 18 of this Information.

Chapter II

APPROVAL OF THE BOND ISSUE

LOCAL GOVERNMENT

What? 7. Build and approve the project to issue local government bonds.

1. When there is a need to raise capital through the release of local government bonds to invest in economic-social development projects-the social-budget of the local budget or projects that are capable of financing the local capital, the People ' s Committee said. The provincial government has to build a proposal to issue a local government bond to provide the approval of the Council of the People's Assembly (the so-called Provincial People's Council).

2. The proposal to issue local government bonds states at Clause 1 This includes the following basic content:

a) The purpose of releasing the bonds, the information on projects that envisage the use of bond-issued capital, the situation and the deployment plan to implement these projects;

b) The investment capital structure of the project and the capital demand from bond release;

c) The volume, term, interest rate, method and plan to issue bonds;

d) Financial methods, effectiveness assessment and project returns capabilities (for projects that have a local capital capacity);

The method of using the source of capital mobilized from the bonds, the capital layout, the bond of interest, the original bond, and the term;

e) The maximum amount of outstanding debt is allowed to mobilize the local budget at the time of the construction of the project under the regulation at the State Budget Law and manual text;

f) The balance situation of the local budget in the next three (03) years comes at the time of the construction of the project and expects the balance of the local budget after the release of the bonds.

3. After receiving a proposal to issue a local government bond issued by the People's Committee in Article 2 of this, the Provincial People's Council reviewed, approving the proposal to issue bonds.

What? 8. Appropriation of bond issue of the Treasury Department

1. After the Provincial People 's Council approved the proposal to issue a bond stating at Article 3 Article 7 This Information, the Provincial People' s Committee sent the filing of a proposal to issue local government bonds to the Ministry of Finance review, having an opinion before the organization. published. The profile consists of:

a) The text of the proposal to issue a local government bond according to the template at Appendix 1 attached this message;

b) The scheme of issuing local government bonds has been approved by the Provincial People ' s Council;

c) The resolution approx the proposal to issue the local government bonds of the Provincial People ' s Provincial Assembly under the regulation at paragraph 3, Article 7 of this News;

d) The proofs are eligible for the release of bonds by regulation at this Article 4;

2. After receiving full of the prescribed record at this 1 Article, in the thirty (30) days of work, the Ministry of Finance considers, there is an opinion on the proposal to issue a local government bond. The contents of this opinion are:

a) the conditions of the bonds;

b)

c) Limit the permitted balance of the provincial budget by the regulation of the State Budget Law and the manual text;

d) The maximum volume is allowed to issue bonds (for projects that are capable of return locally).

3. The Ministry of Finance announces an opinion document on the Proposal to issue a local government bond to the Provincial People's Committee to issue a vote in accordance with the provisions of this privacy. The unqualified case was released, the Ministry of Finance announced in writing and stated the reason.

Chapter III

LOCAL GOVERNMENT BOND

What? 9. release interest rates Local government bonds.

1. As slow as fifteen (15) days of working before the day of the organization issuing local government bonds, the Provincial People ' s Committee sent text announcing plans to issue bonds to the Treasury to announce the interest rate framework issuing political bonds. Local rights. The published plan notification text must specify the following content:

a) Time is expected to be released;

b) The volume, term, form, and method of release of bonds.

2. As slow as seven (7) days of work since the date of receiving the text announcement of the bond issue at Clause 1 Article, the Treasury specifically announces the interest rate frame issuing bonds to the Provincial People ' s Provincial Committee to issue a regulatory release. at this point.

3. Based on the interest bracket provided by the Ministry of Finance at paragraph 2 This and the market situation at the time of its release, the Provincial People ' s Committee decided the interest rate issued a bond.

What? 10. Local government bonds.

The method of issuing a local government bond made in accordance with the issue of issuing bonds has been granted jurisdiction of approval, including the following methods:

1. The bid to issue bonds was made through the Hanoi Stock Exchange;

2. Security release;

3. The release of the University.

What? 11. The organization releases local government bonds.

1. Release bonds through the method of bidding and warranty issued.

Provincial People's Committee. It is used in terms of processes, procedures on government bonds by means of bidding through the Hanoi Stock Exchange and issued bail to issue local government bonds.

2. Release bonds through the agent method.

a) The Provincial People ' s Committee selects the institutions eligible to do dealership issuing bonds or issuing agents and pay local government bonds.

b) The organization is made to publish local government bonds as commercial banks, securities companies, local development funds established and legal operations in Vietnam.

c) The Provincial People ' s Committee is applied to the conditions, processes, procedures on the choice of agents and the organization to issue Government bonds in accordance with the release of the issuing agent for the implementation of the implementation.

What? 12. Register, register and list the bonds.

1. Local government bonds are registered, centralized storage, compensated payment at the Vietnam Securities Contracting Center and are listed, trading gathered at the Stock Exchange at the request of the owner of the release.

2. The registration, registration, and listing process of local government bonds is applied as the registration process, the registration and listing process of Government bonds.

Chapter IV

INTEREST PAYMENTS, BOND ORIGINATION, ACCOUNTING REGIME, RELEASE FEES AND BOND PAYMENT FEES.

What? 13. Interest payments, bond root

1. The release subject is responsible for the payment of interest, the bond root when it comes to a deadline by its legal capital.

2. For programs, the economic-economic development project is the cost of the local budget, the source of interest payments, the bond root guaranteed from the provincial budget.

3. For programs, the investment project has the capacity to be completed locally, the source of interest payments, the bond root from the legal source of the programs, this project. Where the project is not able to pay interest rates, the bond root, the provincial budget is responsible for the layout of the source to pay.

What? 14. bond release fees and interest payments, bond root

1. bond release fees

The bidding fee is issued, the warranty fee issued and the agent fees issued by the local government bond agreed between the owner of the release and the bidding organization, the bail, the bond issue. The fees for the release of local government bonds are maximal by the amount of the bond issued by the government in the domestic market according to the current regulation.

2. Original payment fee, bond interest

The original payment fee, local government bond interest is imposed by the extent of the original payment fee, the Government bond interest in the current regulation.

3. The source of the issuing fee payment, interest payments fee, local government bond root is guaranteed from the provincial budget.

What? 15. Accounting Mode

The subject of release and related units is responsible for the implementation of the accounting work under the provisions of the Accounting Law, the State Budget Law, and the laws of law that are related to the existing accounting regime.

Chapter V.

INFORMATION MODE, REPORT

What? 16. Quick report results

The slowest of seven (7) days of work since the end of each wave of local government bonds, the Provincial People's Committee reported that the Treasury Department detailed the release to sum up, tracking. The report content is in the Appendix 2.

What? 17. recurring report six (06) months, years and reports of mutations

1. Within ten (10) days of work after the end of the Second Quarter and thirty (30) days of work after the end of the fiscal year, the Provincial People ' s Committee is responsible for sending mobiling intelligence reports, using capital sources, the situation of paying interest, the original debt. Local government bonds by text to the Ministry of Finance to follow the sample at Appendix 3.

2. In addition to the periodic reporting content of this Article 1 Article, the Provincial People ' s Committee is responsible for sending the report at the request of the Ministry of Finance in some cases of a breakthrough.

What? 18. The report concludes the bond acquisition

After the end of the acquisition of local government bonds by regulation at this Smart and relevant regulations, the subject of the release must report the Ministry of Finance according to the following content:

1. The bond code is acquired.

2. The volume of repurchase bonds for each bond code.

3. The interest rate acquisition corresponds to each bond code.

4. The balance of the local budget, the balance of local government bonds after the acquisition.

Chapter VI

BREACH OF THE BONDS DURING THE RELEASE OF THE BONDS

What? 19. The suspension issued Local government

1. The Ministry of Finance carried out the suspension of the release of local government bonds in the following circumstances:

a) The Provincial People's Committee does not make the issue in accordance with the right of the bonds issued by the authority approved by the provisions of this privacy.

b) Local government bond yields issued beyond the interest bracket announced by the Ministry of Finance.

c) The volume of release exceeds the volume that is allowed to be released by regulation at paragraph 3 Article 5 This message.

2. The suspension of the release applied to the issued release has been violated at Clause 1 This and subsequent releases (if any) of the issued volume of the Provincial People's Committee have been granted the authority to approve.

3. When the Finance Ministry 's announcement is received, the Provincial People' s Committee must make immediate suspension of the vote.

What? 20. Waste Processing

Organizations, individuals involved in the process of implementing local government bonds have violations of regulations in this privacy, depending on the behavior and the extent of violations that will be considered under the law of the current law.

Chapter VII.

THE RESPONSIBILITY OF THE AGENCIES INVOLVED

What? 21. Ministry of Finance

1. Make provisions for regulation at Article 8, Article 9 and Article 19 of this Information.

2. General, which monitors the implementation of the information regime, the report on the situation of release, use, repayment of the original, the local government bond interest of the Provincial People's Committee as prescribed in this Information.

What? 22. Responsibility of the Provincial People's Council

1. Appropriation of the proposed local government bond by regulation in this privacy.

2. Appropriate the portfolio of programs, projects in the plan of the year (05) years as defined in the State Budget Law and relevant regulations.

3. Appropriate the pre-bond acquisition method by the Provincial People ' s Commission in accordance with the provisions of this Article 6.

4. Do monitoring the mobiling, management, use of local government bonds, the return of the original debt, the bond interest debt when it comes to the deadline and supervises the acquisition of bonds (if any).

What? 23. The responsibility of the Provincial People ' s Commission

1. Build a proposal to issue local government bonds, plans for a return to the Provincial People's Assembly approved and complete the filing of local government bonds issued by the Ministry of Finance of the Ministry of Finance in accordance with the provisions of this Information.

2. Build a method of acquisition of local government bonds that have the authority to approve and implement the implementation under the regulation at this Smart.

3. Take full responsibility for the evaluation of efficient investment projects, potentially payable (for projects with local returns) and the ability to repay the original debt, the bond interest of the local budget.

4. The organization releases local government bonds under the proposal approved by the Ministry of Finance and by regulation at this Notice.

5. Using capital from the release of the right to the right, effective at the correct regulation of the State Budget Law and the Law of Public Debt Management and is fully responsible for the use of capital bonds by law.

6. Balance the provincial budget to secure the source of interest payments, the original debt of local government bonds when it comes to the case. released local government bonds to invest in projects under the local budget ' s cost of the budget and for the project case that is likely to be reimbursable but the source of the programs, this project is not enough payment of interest, the bond root debt. according to the regulations on this message.

7. Watch, monitor the use of the right capital, effect, return of capital to repay the debt on investment projects that have the ability to return locally.

8. fully responsible for the outcome assessment results of the project with the ability to return locally, and the ability to repay the local budget's debts to the project of the local budget expenditures.

Chapter VIII

THE ORGANIZATION.

What? 24. Terms of execution

1. This message came into effect on 10 July 2012.

2. This message replaces the following tutorial text:

a) The guide content on the release of local government bonds stipulated at the Digital Information 21 /2004/TT-BTC March 24, 2004 of the Ministry of Finance guidelines for the bidding of government bonds, bonds issued by the Government and local government bonds through the centralized stock exchange;

b) The guide content on the release of local government bonds stipulated at the Digital Media. 29 /2004/TT-BTC April 6, 2004 of the Ministry of Finance guidelines for the guarantee of the release and the agent to issue Government bonds, bonds issued by the Government and local government bonds;

c) The guide content on the release of local government bonds at Decision No. 1 66 /2004/QĐ-BTC August 11, 2004 of the Minister of Finance enacted guidelines on the sequence of the government, the procedure of issuing government bonds, the bonds granted by the Government and the local government bond.

3. During the implementation process, if there is difficulty, entangrium, the Provincial People ' s Committee and the units involved in timely reporting on the Ministry of Finance to consider having specific guidelines ./.