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Vietnam: 03 criteria for selecting partners for term repurchase of government bonds

Nguyễn Trinh

08:40, 01/01/2021

Recently, the Ministry of Finance of Vietnam has issued the Circular No. 107/2020/TT-BTC on guidelines on term repurchase of government bonds using temporarily idle state funds of state treasury.

According to the Circular No. 107/2020/TT-BTC of the Ministry of Finance of Vietnam, the State Treasury shall select financial institutions satisfying eligibility below as partners for term repurchase of government bonds:

- Included in the list of financial institutions classified by safety level provided by the State Bank of Vietnam for the Ministry of Finance (the State Treasury) on an annual basis according to Clause 3 Article 14 of Decree No. 24/2016/NĐ-CP;

- Currently are trading members on debt instrument trading market at the Stock Exchange;

- Not violating payment obligations in term repurchase of government bonds with the State Treasury according to Clause 2 Article 15 hereof within the last 1 year (precise by the date) from the date on which the State Treasury performs term repurchase of government bonds.

Note: On a quarterly basis, based on use quota of temporarily idle state funds for term repurchase of government bonds approved by the Ministry of Finance, the State Treasury shall verify and inform the outstanding debt quota of the quarter in writing for each financial instrument within 5 working days from the date which Ministry of Finance issues approval.

View more Circular No. 107/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from April 01, 2021.

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