What are the purposes of using the proceeds from the issuance of government-guaranteed bonds of the state budget of Vietnam?
- How much is the government guarantee fee charged to bank for social policies in Vietnam?
- How to conduct repurchase and swap of government-guaranteed bonds of the state budget of Vietnam in accordance with the law?
- What are the purposes of using the proceeds from the issuance of government-guaranteed bonds of the state budget of Vietnam?
- What types of reports is the bank for social policies responsible for submitting to the Ministry of Finance in the issuance and management of government-guaranteed bond issuance?
How much is the government guarantee fee charged to bank for social policies in Vietnam?
Pursuant to Clause 1, Article 51 of Decree No. 91/2018/ND-CP stipulating as follows:
Government guarantee fee charged to bank for social policies in Vietnam
1. The government guarantee fee charged to a bank for social policies is 0.25%/year of outstanding guaranteed bonds.
2. Collection, transfer and use of guarantee fees paid by banks for social policies shall be performed in accordance with provisions in Article 28 and Article 29 herein.
3. A bank for social policies may aggregate guarantee fee paid in its operating expenses.
Thus, according to the above regulations, the government guarantee fee charged to a bank for social policies is 0.25%/year of outstanding guaranteed bonds.
What are the purposes of using the proceeds from the issuance of government-guaranteed bonds of the state budget of Vietnam?
How to conduct repurchase and swap of government-guaranteed bonds of the state budget of Vietnam in accordance with the law?
Pursuant to Clause 7, Article 49 of Decree No. 91/2018/ND-CP stipulating the repurchase and swap of government-guaranteed bonds of the state budget as follows:
- A bank for social policies may repurchase or swap government-guaranteed bonds in order to serve its debt restructuring. Repurchase and swap of guaranteed bonds must be carried out openly, transparently and in conformity with market rules;
- Before repurchasing or swapping bonds, the relevant bank for social policies shall formulate and submit its plan for repurchase or swap of guaranteed bonds to the Prime Minister for approval.
A plan for repurchase or swap of guaranteed bonds includes: purpose of repurchase or swap; terms and conditions of bonds to be repurchased or swapped; planned date of repurchase or swap; funds for repurchase or swap bonds; estimated outstanding bonds guaranteed by the government after repurchase or swap;
- At least 10 working days before the planned date of repurchase or swap, the bank for social policies shall request the Ministry of Finance in writing to notify the bracket of interests on repurchased bonds or discount rates on swapped bonds;
- Within 10 working days from the end of each repurchase or swap of guaranteed bonds according to the plan approved by the Prime Minister, the bank for social policies shall submit a report to the Ministry of Finance on results of its repurchase or swap of guaranteed bonds in order for the Ministry of Finance to determine and adjust the actual liability of the guarantor;
- The bank for social policies shall arrange funds and cover fees for carrying out the repurchase or swap of guaranteed bonds;
- Procedures for repurchase or swap of government-guaranteed bonds shall be performed in accordance with the Minister of Finance’s guidance on repurchase and swap of Government debt instruments.
What are the purposes of using the proceeds from the issuance of government-guaranteed bonds of the state budget of Vietnam?
Pursuant to Clause 1, Article 50 of Decree No. 91/2018/ND-CP stipulating as follows:
Using funds from issuance of bonds
1. Each bank for social policies shall record, manage and use proceeds from the issuance of guaranteed bonds in accordance with its Regulation on financial management and bond issuance scheme approved by the Prime Minister as prescribed in Clause 3 Article 48 herein.
2. The bank for social policies must not provide collateral for issuing guaranteed bonds according to the bond issuance scheme approved by the Prime Minister.
3. The bank for social policies shall manage and use funds from the issuance of guaranteed bonds in conformity with applicable law regulations on issuance and management of government guarantees.
Thus, according to the above regulations, each bank for social policies shall record, manage and use proceeds from the issuance of guaranteed bonds in accordance with its Regulation on financial management and bond issuance scheme approved by the Prime Minister as prescribed in Clause 3 Article 48 of Decree No. 91/2018/ND-CP.
What types of reports is the bank for social policies responsible for submitting to the Ministry of Finance in the issuance and management of government-guaranteed bond issuance?
Pursuant to Article 52 of Decree No. 91/2018/ND-CP stipulating as follows:
- The bank for social policies shall submit the following periodic reports to the Ministry of Finance:
+ Report on used funds and debt repayment: Within 10 working days from the end of each quarter and within 20 working days from the end of the fiscal year, the bank for social policies shall send the Ministry of Finance a report on the raised and used funds, principal and interest payment, which is made according to the Ministry of Finance's guidance;
+ Report on financial management: The audited annual financial statement within 10 working days from the day on which the audit report is available.
- Apart from the periodic reports, the bank for social policies must also submit ad hoc report on financial management within 10 working days from the receipt of written request from the Ministry of Finance.
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