From 04/05/2023, when shall the State Treasury of Vietnam publicize results of term trade of government bonds in Vietnam?

From 04/05/2023, when shall the State Treasury of Vietnam publicize results of term trade of government bonds in Vietnam?

Pursuant to Article 17 of the Circular 107/2020/TT-BTC (amended by Clause 9 Article 1 of the Circular 12/2023/TT-BTC) stipulating information publication of the State Treasury as follows:

 Information publication of the State Treasury

1. At the latest on the last working day of the week immediately preceding the week of trading, the State Treasury shall publish information on the website of the State Treasury about the expected schedule of term repurchase of government bonds of the next trading week; and also provide information to the Stock Exchange for posting on the Website of the Stock Exchange.

2. No later than the 10th of each month, the State Treasury shall publicize results of term repurchase of government bonds in the preceding month (weighted average of quantity, interest of term repurchase of government bonds on website of the State Treasury for each type of term); and also provide information to the Stock Exchange for posting on the website of the Stock Exchange.

As regulations above, from 04/05/2023, the State Treasury of Vietnam shall publish information on the website of the State Treasury about term trade of government bonds in Vietnam with the time as below:

- At the latest on the last working day of the week immediately preceding the week of trading, the State Treasury shall publish information on the website of the State Treasury about the expected schedule of term repurchase of government bonds of the next trading week;

The State Treasury shall also provide information to the Stock Exchange for posting on the Website of the Stock Exchange.

- No later than the 10th of each month, the State Treasury shall publicize results of term repurchase of government bonds in the preceding month (weighted average of quantity, interest of term repurchase of government bonds on website of the State Treasury for each type of term);

The State Treasury shall also provide information to the Stock Exchange for posting on the website of the Stock Exchange.

What are regulations on eligibility for government bonds to be approved by the State Treasury in trade in Vietnam?

Pursuant to Article 5 of the Circular 107/2020/TT-BTC (amended by Clause 2 Article 1 of the Circular 12/2023/TT-BTC) stipulating eligibility for government bonds to be approved by the State Treasury in trade in Vietnam as follows:

Eligibility for government bonds to be approved by the State Treasury in trade

Government bonds shall be approved by the State Treasury for term repurchase of government bonds when:

1. The government bonds are issued by the State Treasury and posted publicly at the Stock Exchange.

2. The government bonds are legally owned by the seller and can be transferred; are not bound to relationships in secure transactions during the period of term repurchase, starting from the payment date of the first trade.

As regulations above, government bonds shall be approved by the State Treasury for term repurchase of government bonds when:

- The government bonds are issued by the State Treasury and posted publicly at the Stock Exchange.

- The government bonds are legally owned by the seller and can be transferred; are not bound to relationships in secure transactions during the period of term repurchase, starting from the payment date of the first trade.

What are regulations on handling financial institutions in case the State Treasury and the financial institution cannot agree on the adjustment of the payment time?

Pursuant to Clause 2 Article 15 of the Circular 107/2020/TT-BTC (amended by Clause 7 Article 1 of the Circular 12/2023/TT-BTC) stipulating solutions for cases where financial institutions fail to pay the State Treasury as follows:

Solutions for cases where financial institutions fail to pay the State Treasury

1. In case financial institutions fail to pay the State Treasury as per commitment, the State Treasury and financial institutions shall agree and sign contract annexes to adjust payment deadline as per Clause 1 Article 23 and Point a Clause 4 Article 32 of Circular No. 30/2019/TT-BTC. Financial institutions shall submit payment for the second trade and late payment penalty according to Article 14 hereof until the actual date of payment.

2. In case the State Treasury and the financial institution cannot agree on the adjustment of the payment time or once the payment deadline under Clause 1 of this Article is reached and financial institutions have not paid the State Treasury, the State Treasury shall retain government bonds until maturity and receive both principal and interest of government bonds to deduce all payment liabilities (payment for the second payment and late payment penalty by the end of the day preceding the maturity date) of the financial institutions; the remaining amount (if any) shall be returned to the financial institutions by the State Treasury within five (05) working days from the date of maturity of government bonds.

As regulations above, from 04/05/2023, in case the State Treasury and the financial institution cannot agree on the adjustment of the payment time or once the payment deadline is reached and financial institutions have not paid the State Treasury, the State Treasury shall retain government bonds until maturity and receive as follows:

- both principal and interest of government bonds to deduce all payment liabilities (payment for the second payment and late payment penalty by the end of the day preceding the maturity date) of the financial institutions;

- the remaining amount (if any) shall be returned to the financial institutions by the State Treasury within five (05) working days from the date of maturity of government bonds.

Best regards!