Settlement of State Bank Treasury Bills by which method?

According to the provisions in Article 7 of Circular 16/2019/TT-NHNN, credit institutions shall pay the amount for purchasing the State Bank-issued treasury bills through bidding and compulsory methods, specifically as follows:

Illustration (source: internet)

- Credit institutions shall pay the amount for purchasing the State Bank-issued treasury bills through bidding according to the regulations of the State Bank on open market operations.- Credit institutions shall pay the amount for purchasing the State Bank-issued treasury bills through the compulsory method as follows: The credit institution must transfer the amount to purchase the State Bank treasury bills to the account as designated by the State Bank on the payment day of the State Bank treasury bills. The credit institution must ensure full information is provided on the transfer order as required by the State Bank.

On the maturity date of the State Bank treasury bills, the State Bank shall pay the principal amount equivalent to the face value of the State Bank treasury bills to the credit institutions. If the maturity date of the State Bank treasury bills falls on a weekend or a public holiday, the payment will be made on the next working day following the holiday.

In which, the payment date of the State Bank treasury bills is the date on which the credit institution must transfer the amount for purchasing the State Bank treasury bills to the State Bank. The issuance date of the State Bank treasury bills is the payment date of the State Bank treasury bills and serves as the basis to determine the maturity date of the State Bank treasury bills.

Refer to additional regulations in Circular 16/2019/TT-NHNN effective from December 9, 2019.

Thu Ba

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