Who are purchasers of bonds issued through the State Treasury system ? What are the regulations on authority to decide the bond interest rates in Vietnam?
Who are purchasers of bonds issued through the State Treasury system in Vietnam?
Subjects purchasing Government bonds issued through the State Treasury system are regulated according to subsection 4, Section II of Circular 32/2004/TT-BTC as follows:
II. SPECIFIC PROVISIONS
...
4. Bond purchasers
Purchasers of bonds issued through the State Treasury system include:
4.1. Vietnamese citizens at home and abroad;
4.2. Overseas Vietnamese;
4.3. Foreigners working and residing in Vietnam;
4.4. Non-business units;
4.5. Political organizations; socio-political organi-zations; socio-political-professional organizations; social organizations; socio-professional organizations;
4.6. Enterprises and economic organizations of all economic sectors;
4.7. Foreign organizations lawfully operating in Vietnam.
Organizations being the State budget beneficiaries must not use money allocated by the State budget to purchase bonds.
The Finance Minister shall specify bond purchasing subjects for each issuance drive.
...
Thus, purchasers of bonds issued through the State Treasury system include:
- Vietnamese citizens at home and abroad;
- Overseas Vietnamese;
- Foreigners working and residing in Vietnam;
- Non-business units;
- Political organizations; socio-political organi-zations; socio-political-professional organizations; social organizations; socio-professional organizations;
- Enterprises and economic organizations of all economic sectors;
- Foreign organizations lawfully operating in Vietnam.
Organizations being the State budget beneficiaries must not use money allocated by the State budget to purchase bonds.
The Finance Minister shall specify bond purchasing subjects for each issuance drive.
Who are purchasers of bonds issued through the State Treasury system ? What are the regulations on authority to decide the bond interest rates in Vietnam? (Image from the Internet)
What are the regulations on authority to decide the bond interest rates in Vietnam?
The authority to decide interest rates on Government bonds according to regulations under section 3.1, subsection 1, Section II, Circular 32/2004/TT-BTC is as follows:
II. SPECIFIC PROVISIONS
1. Issuance and payment currencies
Bonds issued through the State Treasury system shall be issued and paid in Vietnam dong and freely convertible foreign currencies.
Bonds issued in a certain currency shall have their principals and interests paid in such currency.
The Finance Minister shall decide on types of issuance foreign currency and areas where foreign-currency bonds are to be issued for each issuance drive.
2. Bond forms and denominations
2.1. Bonds are issued through the State Treasury system in form of certificates or book entries, registered or bearer.
2.2. Bonds issued in Vietnam dong shall have the minimum denomination of VND 100,000 (one hundred thousand dong). Other denominations are multiples of 100,000.
Denominations of foreign-currency bonds shall be decided by the Finance Ministry for each issuance drive.
2.3. Bond certificates shall have the contents prescribed by the Finance Ministry and printed by the State Treasury for distribution to purchasing organizations and individuals.
3. Bond interest rates and interest payment modes
3.1. Bond interest rates shall be decided by the Finance Minister for each issuance drive, compatible with the common interest rate on the market and ensuring benefits for bond-purchasing organizations and individuals.
3.2. Issued bonds shall have fixed interest rates and have their interests paid by the following modes:
a/ Periodical interest payment;
b/ Lump-sum payment of interests together with principals upon their maturity;
c/ Interest payment right upon their issuance.
...
According to regulations, Government bond interest rates are decided by the Minister of Finance for each issuance, consistent with the general interest rate level in the market and ensuring benefits for organizations and individuals buying bonds.
Wha are the payment modes of bonds issued with fixed interest rates in Vietnam?
Pursuant to subsection 1, Section II, Circular 32/2004/TT-BTC has the following content:
II. SPECIFIC PROVISIONS
1. Issuance and payment currencies
Bonds issued through the State Treasury system shall be issued and paid in Vietnam dong and freely convertible foreign currencies.
Bonds issued in a certain currency shall have their principals and interests paid in such currency.
The Finance Minister shall decide on types of issuance foreign currency and areas where foreign-currency bonds are to be issued for each issuance drive.
2. Bond forms and denominations
2.1. Bonds are issued through the State Treasury system in form of certificates or book entries, registered or bearer.
2.2. Bonds issued in Vietnam dong shall have the minimum denomination of VND 100,000 (one hundred thousand dong). Other denominations are multiples of 100,000.
Denominations of foreign-currency bonds shall be decided by the Finance Ministry for each issuance drive.
2.3. Bond certificates shall have the contents prescribed by the Finance Ministry and printed by the State Treasury for distribution to purchasing organizations and individuals.
3. Bond interest rates and interest payment modes
3.1. Bond interest rates shall be decided by the Finance Minister for each issuance drive, compatible with the common interest rate on the market and ensuring benefits for bond-purchasing organizations and individuals.
3.2. Issued bonds shall have fixed interest rates and have their interests paid by the following modes:
a/ Periodical interest payment;
b/ Lump-sum payment of interests together with principals upon their maturity;
c/ Interest payment right upon their issuance.
...
According to regulations, issued bonds shall have fixed interest rates and have their interests paid by the following modes:
- Periodical interest payment;
- Lump-sum payment of interests together with principals upon their maturity;
- Interest payment right upon their issuance.
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