Circular 34: Issuers of valuable papers in Vietnam

Currently, promissory notes, bills, deposit certificates, bonds (hereinafter called valuable papers) shall be an evidence that confirms the debt repayment obligation between the issuing credit institution, foreign bank branch and the buyer of valuable paper in a certain period of time, interest payment conditions and other conditions.

According to Circular No. 34/2013/TT-NHNN of the State Bank of Vietnam, 04 issuers of valuable papers include:

- Commercial banks.

- Foreign bank branches operating in Vietnam.

- Finance companies and finance leasing companies that issue valuable papers for mobilizing funds from organizations.

- Vietnam cooperative banks that issue valuable papers in line with their Establishment and Operation License.

Besides, Circular No. 34/2013/TT-NHNN also regulates buyers of valuable papers, specifically as follows:

- Buyers of valuable papers shall be Vietnamese entities, individuals and foreign entities, individuals. Buyers of valuable papers that are initially issued by credit institutions, foreign bank branches in the primary market shall exclude credit institutions, foreign bank branches, credit institutions’ subsidiaries.

- In case where a credit institution, foreign bank branch, credit institution’s subsidiary is an existing shareholder of the issuing credit institution, it shall be permitted to buy convertible bonds, warrant-linked bonds of such credit institution on the basis of complying with regulations on capital contribution, share purchase.

View other provisions at Circular No. 34/2013/TT-NHNN of the State Bank of Vietnam, effective from February 14, 2014.

Thu Ba

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