Circular 34/2012/tt-Btc: Guide On Bonds Guaranteed By The Government

Original Language Title: Thông tư 34/2012/TT-BTC: Hướng dẫn về phát hành trái phiếu được Chính phủ bảo lãnh

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Guide on bonds guaranteed by the Government _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 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. 118/2008/ND-CP dated 27 November 2008 on the Government's function, mission and organizational structure of the Ministry of finance;

Pursuant to Decree No. 01/2010/ND-CP on January 5 in Government 2011của about government bonds, Government-guaranteed bonds and bonds of local government;

Pursuant to Decree No. 15/2010/ND-CP on January 16, 2011 the Government guarantee and management levels of Government;

The Ministry of finance guidelines on the release of Government guaranteed bonds are as follows: chapter I GENERAL PROVISIONS article 1. Scope this circular guide on bonds guaranteed by the Government (hereinafter referred to as the bonds were guaranteed) in the domestic market and international market.

Article 2. The subject released the subject bonds guarantee as enterprise, State policy banks and other financial institutions, credit (hereinafter referred to as the subject of release) of the object are granted Government guarantee under the provisions of clause 2, article 3 of Decree 01/2010/ND-CP on January 5, 2011 by the Government on the release of government bonds , bonds are Government-guaranteed and local government bonds (hereinafter referred to as the Decree No. 01/2010/ND-CP).

Article 3. The purpose of issuing bonds was released to guarantee investments for programs and projects under the provisions of clause 2, article 4 of Decree 01/2010/ND-CP.

Article 4. Conditional release 1. For enterprises a) must meet the full range of conditions guarantee bonds issued under the provisions of clause 1, article 16 of Decree 01/2010/ND-CP when issuing bonds in the domestic market;

b) Must meet the conditions of guarantee bonds prescribed in article 40 of Decree 01/2010/ND-CP when issuing bonds in the international market.

2. for banking policy released in the domestic market a) must meet the full range of conditions guarantee bonds issued under the provisions of clause 2, article 16, Decree No. 01/2010/ND-CP;

b) issue volume was to guarantee the guarantee limit in the Government to be the Prime Minister for approval in each period.

3. With respect to financial institutions, credit-credit programme has the objective of State a) bonds are guaranteed in the domestic market to make targeted credit programs of the State by the Prime Minister's decision for each program , project;

b) must meet the full release conditions stipulated in article 34 of law public debt management and item 2, article 16 of Decree 01/2010/ND-CP of the Government.

Article 5. Terms and conditions of the bonds Beyond the conditions, terms and the provisions of article 6, of Decree No. 01/2011/ND-CP, issued bonds are subject of guarantee have to comply with the following rules: 1. release the volume: the volume released by every owner released the decision but not exceed underwriting bonds in each period reviewed the approval authority as prescribed in this circular.

2. Interest rates released a) issued bonds are interest of guarantee in the domestic market due to the subject decision for each release but not exceed the frames of interest by the Ministry of Finance announced for each release or in each period;

b) release bond interest rates are guaranteed in the international market due to the subject's release decisions for each release based on the release scheme has been approved by the Prime Minister and the market situation at the time of release.

Article 6. Buy back and swap the bonds 1. Subject bonds guarantee can buy back the bonds before maturity to reduce debt obligations. The acquisition of the bonds must ensure the following principles: a) has the option to buy back the bonds are approved by the authority. Granted approval to release at the same time is granted approval to buy back the bonds;

b) openly, transparently and effectively.

2. the holder may release the bond guarantee bond swaps made to reduce the debt or obligation to restructure debt. The bond swaps should ensure the following principles: a) the bond swaps have been approved by the authority. Granted approval to release at the same time as the approval level swap bonds;

b) option bond swaps to be the Finance Ministry review, comments approved in writing;

c) publicity, transparency and efficiency;

3. The subject of release is applied the method of acquisition organization, swap of government bonds to make acquisitions, swap the bonds guarantee.

4. release the owner responsible for the effects of the acquisition, swap the bond guarantee and are responsible for The financial reports as prescribed in this circular.

Chapter II APPROVAL of the PROJECT RELEASED on BAIL BONDS are category 1 BONDS are ISSUED by ENTERPRISES GUARANTEES article 7. Records suggest that the level of guarantee 1. For bonds that are guaranteed in the domestic market a) text suggested bonds was the guarantee of the subject released according to the model in annex 1 attached to this circular;

b) project issued bonds are guaranteed. In addition to the contents specified in clause 1, article 17 of Decree 01/2010/ND-CP, issued proposals to add following text:-information on the program, project and implement situation, including: investment decisions of the authority; total investment; investment in the project directory, the program is considered the level of guarantee according to the decision of the Prime Minister in each period; planning and investment progress; the capital source implementation, including bond funds and guarantee the implementation of programs and projects to the time of filing;

-Expected plan to guarantee bonds: the total volume released was divided according to the term of the bonds and planned to release on the basis of the progress of implementation and disbursement of program projects. The case is expected to be divided into installments Administration for many years, the release plan is built specifically for each year;

c financial statements of the year) three (3) years previous years proposed adjacent bonds have been audited by the State Audit or audit organizations are allowed to operate legally in Vietnam under the provisions of the law on issuing corporate bonds.

The business case submission of recommendations issued before 1/4 every year, financial year report of the year preceding the year of adjacent suggest released can financial report is audited but must be the Board, Board member or President of the company approved by the rules of operation of the business;

d) text approved and approved the project of corporate bonds issued by the authority in accordance with the law on issuing corporate bonds;

DD) the texts prove eligible bonds are guaranteed by the provisions of article 4 of this circular, including:-certified copies of business registration certificate of the enterprise and the Charter the Organization and operation of the business;

-The text to demonstrate the program, the project was completed and construction investment procedure according to the provisions of the law on investment and construction;

-Documents that business for a minimum of 20% of the equity investment in the program, the project;

-Other documents proving the eligible business issued under the law on issuing corporate bonds.

2. for bonds to be guaranteed by the international market a) text suggested bonds was the guarantee of the subject released according to the model in annex 1 attached to this circular;

b) project issued bonds are guaranteed. In addition to the contents specified in article 41 of Decree 01/2010/ND-CP, the project issued bonds in the international market are adding content to the provisions in paragraph 1 b of this secretion;

c) the records specified in c, d, e Clause 1 of this article.

Article 8. Process, procedures for approving the guarantee level 1. Send a business (1) the records specified in article 7 of this circular to the Ministry of finance to examine the adequacy of records, and suggest additions (if any). The case of the full record, the Finance Ministry announced to submit additional business of the year (5) record for review comments for bond release scheme is guaranteed.

2. Within thirty (30) days from the date of receiving the application prescribed in paragraph 1 of this article, the Ministry of finance in cooperation with the relevant ministries review, comments the project bonds guarantee. Review content include: a) the object and conditions of release of bonds under the provisions of this circular;

b) options of financial programs, projects and plans issued;

c) schemes to use and manage the funding bonds, capital source layout variant of the original payment, interest on the bonds;

d) capacity and the financial situation of the enterprise including: equity, debt, debt payment capability, profit;

the guarantee limit) annual Government was the Prime Minister for approval.

3. On the basis of General comments of the ministries concerned, the Ministry of finance the prime consideration, approval and guarantee supply undertakings guarantee limit. The business case is not eligible to be granted bail, the Finance Ministry announced in writing for business and the stated reason.

4. After the approval in writing of the Prime advocates of granting the guarantee and the guarantee limit, the Finance Ministry announced in writing to limit business allowed the release on bail bonds to implemented as prescribed in this circular.

Section 2


POLICY BANK BONDS ISSUED in the DOMESTIC MARKET article 9. Records suggest that the level of guarantee pursuant to the credit program has the goal of the State is entrusted, to the time the credit plan annual policy, the policy Bank plans credit capital targets for next year, including capital bonds are government guarantees in the domestic market and sent the Finance Ministry review the Prime Minister approved the Government guarantee level limit. Records suggest that the level of guarantee include: 1. The text proposed the release of bonds was the guarantee of the subject released according to the model in annex 1 attached to this circular.

2. bond issuance plan are guaranteed. In addition to the basic content of clause 2, article 17 of Decree 01/2010/ND-CP, issued plans must include the following: a) the mobilization and use of the situation which made the credit program has the goal of State of the three (3) years previous to the adjacent release year , which stated: the total mobilized by each type of resources, sources of capital withdrawal (the original debt, interest); the total loan sales and loan in each program, the rate of overdue debts (if any);

b) debt payment situation, interest rate debt and outstanding bonds are guaranteed for 3 years prior to the adjacent year plan;

c) projected plans to target credit program in the next year, including: the name of the program according to the decision of the Government, the Prime Minister; credit growth plan objectives; total liabilities, including liabilities issued bonds are guaranteed; total sales for the loan, the outstanding expected;

d) mobilization plans, the original repayment, debt interest bonds are guaranteed in the years of planning.

3. financial report of three (3) years previous years proposed adjacent released audited by the State Audit and report the situation of implementing the recommendations of the State Auditor (if any) or the independent audit Organization legal activities in Vietnam.

4. The texts prove eligible released a) the text of the Government, the Prime Minister approved the credit program the goal of the State;

b) credit growth plan of the credit program the goal of the State;

c) the text of the Council or the Board of management approved the financial plan-the year's credit plan, including funding from issuing bonds to be guaranteed.

Article 10. Process, procedures for approving the guarantee level 1. The Bank sent a policy (1) the records specified in article 9 of this circular to the Ministry of finance to examine the adequacy and valid and proposed additions (if any). Case records were complete, the Ministry of Finance reported to the policy Bank filed two (2) additional record for review comments.

2. Within thirty (30) days from the date of receiving the application issued under the provisions of Paragraph 1 of this article, the Ministry of finance review, comments with respect to the plan issued was the guarantee of the Bank policy to the Prime Minister for approval. Review content include: a) bond issuance conditions was guarantee;

b) Government guarantee limit is Prime;

c) capital credit program objective and planned to release the bond guarantee;

d) schemes to use and manage the funding bonds, capital source layout variant of the original payment, the interest rate on the bonds when due;

DD) the financial situation of the subject.

3. After the approval in writing of the Prime advocates of granting the guarantee and the guarantee limit, the Finance Ministry announced in writing to release subject to the maximum limit allowed the release on bail bonds to implemented under the provisions of this circular.

Chapter III ORGANIZATION GUARANTEE BONDS in the DOMESTIC MARKET article 11. Sign up to the plan to release the bond guarantee 1. For business a) on the basis of the notification of the Ministry of finance in clause 4 Article 8 of this circular, the business register planned to release the bonds are guaranteed with the Finance Ministry to the Finance Ministry review, approved before the issuer.

-Project case released on bail bonds are specified just released a single, business registration procedures with the Finance Ministry released latest within thirty (30) days before the expected issuers of bonds to Finance Ministry Announces interest rate bonds frame guarantee;

-Project case released on bail bonds are regulated much of the release in a year or several waves released in different years, before 30 November each year, businesses have to register the plan released by the next year, in which detailed the mass release, release of each term with the release by the quarter.

b) basing plans guarantee bonds issued by the Ministry of finance approved in writing, the business organization under the provisions of this circular.

2. for a policy Bank) on the basis of the notification of the Ministry of finance in paragraph 3 article 10 of this circular, based on the plans of the disbursement of the credit program goals and plans to repay the bond guarantee, the registry policy Bank plans to release of the year divided by each quarter with the Ministry of Finance according to the form prescribed in Subsection record 2 of this circular for review, comments before implementation.

b) to base the plan released in detail as you are the Ministry of finance approved in writing, the policy bank issuers of bonds under the provisions of this circular and should ensure the principle of:-the volume released in fact you do not exceed the release has been the Finance Ministry comments;

-The case of the volume issued in the quarter lower than the actual release of the limit signed with the Ministry of finance then the rest was moved to the adjacent quarter;

-The case of the demand issued in excess of the plan were approved by Ministry of finance, the Bank reports the Finance Ministry policy review, comments before the issuer. Suggested text sent to Finance Ministry stating the reason for the proposal to adjust the release plan.

Article 12. The method of release of bonds 1. For business a) issued bonds are methods of guarantee for business is done according to the project of bonds has been approved by the authority, including the following methods:-tender release;

-Underwriting;

-Dealer;

-Retail.

b) issuers of corporate bonds under the provisions of the law on issuing corporate bonds. Business case release the bonds to the public to comply with the provisions of the law on securities.

2. With regard to the policy of a Bank of) the method of release include:-tender bonds through the Hanoi securities trading center;

-Release agents.

b) the Bank policy is applied to the processes, the procedures of issuing Government bonds by bidding method and method of agent to release the bond guarantee.

Article 13. Registration, custody and listed bonds 1. For business a) bonds are guaranteed to be registered, and listed under the provisions of the law on registration, listing and depository for corporate bonds and securities law;

b) registration process, save up and listing of the bonds are guaranteed to be applied as the registration process, and the listing of corporate bonds.

2. for a policy Bank) bail bonds are registered, in custody in Vietnam securities depository Center and listed transaction focus at the Hanoi securities trading center;

b) registration process, save up and listing of the bonds are guaranteed to be applied as the registration process, save up and listing of government bonds.

Chapter IV PAYMENT of PRINCIPAL, INTEREST on bonds, ACCOUNTING REGIME, charges and PAYMENT FEES, RELEASE FEES GUARANTEE article 14. Payment of principal, interest on bonds 1. The owner has released the original payment responsibility, interest on the bonds when due by the legitimate capital.

2. where the holder may release failed or incomplete execution of payment obligations to the original debt, debt interest rate the bonds when due, the Ministry of Finance made the payment obligation of the subject released within the extent of the guarantee the Government has granted under the provisions of this circular and in accordance with the current legislation regarding the granting and management of Government guarantees.

Article 15. Accounting mode owner release and the relevant units responsible for oversee the Organization of accounting pursuant to the accounting Act and other legal documents related to the current accounting regime.

Article 16. Issue fee and fee payment of principal, interest on bonds 1. Bond issuance costs a) for business tender Fee, fee guarantee and bond release agent fee agreement between the subject and the Organization released a tender guarantee, dealer bonds.

b) with respect to the Charge procurement policy Bank and bond release agent applied using fees to release Government bonds.

2. Fee payment of principal, interest for the bonds the bonds are guaranteed to be registered in a central depository, depository, fee payment of principal, interest rate bonds with the original payments, interest-free government bonds.

Article 17. Cost of Government guarantee issuing bonds are subject guarantee to pay the cost of guarantees the Government according to the current rules of the guarantee management and the Government.

Article 18: the bond issuance cost accounting 1. Businesses are issuance expenses accounting bonds referred to in article 16, article 17 of this circular to the value of the project to use bonds or capital costs of business activities in accordance with the law.

2. The administrative budget the cost accounting of books released the bonds referred to in article 16, article 17 of this circular to the operational costs of the Bank.

Chapter V


In INFORMATION MODE, report article 19. Quick report results each release and the acquisition, swap 1. At the latest five (5) working days from the end date of each release, the owner must report The release detailed financial results released to the Ministry of finance determines the actual guarantee obligations prescribed by law. The content report form in annex 3 to this circular.

2. On the basis of the report of the subject released, within ten (10) working days, the Finance Ministry reported confirmed the obligation of guarantee for bond tranche is released. Particularly for the Bank policy, confirming the guarantee obligation is made quarterly.

3. At the latest within ten (10) working days from the date of the repurchase, swap the bonds under the scheme was approved by the authority specified in article 6 of this circular, the subject of release are responsible for The financial statements the results of acquisitions, swap the bonds to the Treasury Department to determine and adjust the actual guarantee obligations.

Article 20. Periodic report, year 1. Within ten (10) working days after the end of each quarter and twenty (20) working days after the end of the financial year, the subject of release are responsible for submitting reports, use of resources, the situation the original repayment, interest arrears bonds are guaranteed in writing for the Finance Ministry to monitor 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 subject's release is responsible for sending the report to the Ministry of Finance: a) financial reports audited year after ten (10) working days from when the audit results;

b) the financial situation with regard to certain cases necessary to assess the financial capacity of the subject released by request of the Ministry of finance.

Chapter VI HANDLING VIOLATION CASES and SUBJECT to the PAYMENT of the DEBT was NOT RELEASED article 21. Suspension of release of bonds was the guarantee 1. The Ministry of Finance made the suspension of the release of the bond guarantee in the following cases: a) the subject released does not make available under the right issue plan has been approved by the Prime Minister and announced the release of the Finance Ministry;

b) release bonds interest exceeds the interest rate framework by the Ministry of Finance announced;

c) released volume exceeded limits approved by the Ministry of finance.

2. The suspension of the release is applied for release have violated stated in paragraph 1 of this article (if not the issuer) and the next release (if any) of the release limit of the subject's release had been approved.

3. Upon receiving the notice of the Ministry of finance, subject to release immediately the suspension of issuing bonds.

Article 22. Handle the case the subject released no payment is owed 1. At least forty-five (45) working days before the date of the original payment due, interest on bonds that the subject released can not afford the payment, subject to release to send the text to the Finance Ministry proposed the debt payments instead.  The text of the subject released sending the Treasury must explain clearly the causes of non-payment are debt and submit documents that include: a) financial reporting with detailed captions;

b) the statement of accounts, deposit of cash subject to release, the debts are paid, the accounts receivable;

c) certificate of the owner about the possibility of non-repayment of the bonds are subject guarantee is business.

d) other documents at the request of the Ministry of finance report.

2. Within ten (10) working days from the date of the proposed text and the confirmation text does not pay the debt of the owner (in case the subject released is business), the Ministry of finance to consider and handle the cases subject to the payment of the debt was not released under the provisions of article 18 , Decree No. 15/2010/ND-CP of the Government.

3. The owner is responsible for issuing debt and payment receipt back to the Ministry of finance as stipulated in clause 6, Clause 7 article 15 of Decree 15/2010/ND-CP of the Government.

Chapter VII LIABILITY of the AGENCY in RELATION to article 23. The responsibility of the Ministry of finance 1. Chairing of the opinion for the project issued bonds are the guarantee of the objects are the guarantee to the Government for approval to grant bail under the provisions of this circular.

2. track, general situation reports issued are the guarantee of release and suspension of release in the case of violation prescribed in this circular.

3. Regulations on the frame of interest bonds are underwriting in the country.

4. Handle the issues that arise under the jurisdiction of the Ministry of finance in the case of the subject bonds are no guarantee of payment, interest on the bonds when due under the provisions of this circular and the provisions of the law on granting and management of Government guarantees.

Article 24. The responsibility of the State Bank of 1. Confirm account guarantee bonds to the market in international foreign commercial borrowing limit of annual Government at the suggestion of the subject released.

2. In coordination with the Ministry of finance have comments for bond release scheme is the guarantee for the bonds project of the business of credit institutions as defined in this circular.

3. Guide to guarantee bonds are traded on the open market, are refinancing loan pledge in accordance with the law.

Article 25. The responsibility of the owner to release the bonds 1. Build the project to guarantee bonds issued to the authority to review, approve and be responsible for the accuracy, the integrity of the information in the release scheme and announced for the investors.

2. Issuers of bonds under the scheme was approved by the Prime Minister and the announcement of the Ministry of finance regulations this circular and is responsible for the issuance of the bonds must be tied to the progress of disbursement of program projects.

3. Be responsible for the entire process in use capital bonds are the guarantee for your purposes, effectively under the scheme was approved by the Prime Minister.

4. Be responsible for full payment of the entire debt interest, the original debt bonds when due under the scheme was approved by the Prime Minister.

5. Implement fully the information mode, the report under the provisions of this circular.

6. Perform other obligations are guaranteed by the provisions of Decree No. 01/2010/ND-CP, Decree No. 15/2010/ND-CP of the Government, this circular and the current law regulations on the management of loans, repayment of foreign countries.

Article 26. The responsibility of the owners of State enterprises 1. Approval guarantee bonds issued under the provisions of this circular and the provisions of the law on issuing corporate bonds.

2. the process of mobilization, monitoring the use of resources released corporate bonds are guaranteed by the provisions of this circular and the provisions of the law on issuing corporate bonds.

Chapter VIII IMPLEMENTATION article 27. Terms of implementation 1. This circular has effect from the date of April 2012-18.

2. This circular replaces the contents of the following instructions: a) The content of the guidelines on the release of Government-guaranteed bonds specified in circular No. 21/2004/TT-BTC dated March 24, 2004 the Ministry of Finance shall guide the bidding for government bonds, Government-guaranteed bonds and bonds of local government through the securities market;

b) The content of the guidelines on the release of Government-guaranteed bonds as defined in circular 29/2004/TT-BTC on April 6, 2004 of the Ministry of finance instructed the underwriting and agency issued Government bonds, Government-guaranteed bonds and bonds of local government;

c) The content of the Guide on bonds guaranteed by the Government decision No. 66/2004/QD-BTC dated 11 August 2004 of the Minister of Finance issued guidelines on regulation sequence, procedure for issuing Government bonds, Government-guaranteed bonds and bonds of local government.

3. In the process of implementing, if there are difficulties and obstacles, the issuer and the relevant divisions of timely reporting to the Ministry of finance to review specific instructions./.

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