Decision No. 182/2003/QD-TTg on the issuance of Goverment Bonds for investment in some important traffic and irrigation works in the country

OFFICIAL GAZETTE No. 148 (09-9-2003) ItlE PRIME MINISTER DECJSION No. 182/2003/QD-TTg OF SEPTEMBER 5, 2003 ON THE ISSUANCE OF GOValNMENT BONDS FOR INVESTMENT IN SOM~ !MPORTANT TRAFFIC AND IRRIGATION WORKS OF THE COUNTRY THE PRIME MINISTER Pursuant to the Law on Organization of the Government of December 25, 2001; Pun:uant to Resolution No. 414/2003/NQ IJBTVOl-l 11 of August 29, 2003 of the National Assemtitv Standing Committee on the issuance of Goveminent bonds for the construction of a number of irnpor.'ant traffic and irrigation works of the country; Pursuant to the Government's Decree No. 01/2000/ ND-GP of Janua1y 13, 2000 promulgating the Regulation on the issuance of Government bonds; At the proposal of the Minister of Finance, DECIDES: Atticle 1.~ To issue Government bonds aiming to mobilize investment capita! in Vietnam dong and foreign ,.:iurronci8s for investment in some important traffic and krigaton works of the country as defined in the List of works funded by the source of capital obtained through the is,uance of Government bonds in the 2003-2010 Artide2. 1. Tre total level of Government bonds to be issued i;1 the 2003-201 0 period shall be about VND 63,000 hiiiior;: of which the annual levels o! bonds issued in '~)r"Jig~1 curroncios shall be assigned to the Minister of i:: in rn·,, ;e for s pedfic decision on the basis of the financial monetary marketlsituation. The investrmmt capital for some traffic works stated at Point V of th'e List prescribed in Article 1 shall be added to the total issuance level of Government bonds ,-1 after the feasibi I ity ·projects thereon are approved. 2. The annual, issuance levels and issuance time shall depend on the capital demands (including the capital demand ft?r;.repayment of the Government bonds' principals accordf?g to the provisions in Article 6 of th is Decision) and the implementation tempo of works. 3. The total loans from Government bonds shall be concentrated at the State Treasury for use for works and disbursemen,t according to their implementation tempo. The source of capital obtained through the issuance of Government bonds must not be used to repay the State budget capital already allocated to the works till the end ·of 2003. 4. The foreign- currency amounts obtained through the issuance of foreign-currency bonds, after deducting direct spending items in foreign currencies, shall be sold to the State Bank in order to increase the State's foreign exchange resmves; the Vietnam dong amounts paid by the State Bank shall be transferred to the State Treasury. Article 3.~ Buyers of Government bonds include Vietnamese organizations and citizens; overseas Vietnamese; foreigners working and residing in Vietnam; and foreign organizations operating in the Vietnamese territory. Vietnamese organizations must not purchase Government bonds with the State budget sources. Article 4.- The Government bond owners shalt have the following rights and enjoy the following privileges: 1 . To be guaranteed by the Government on the full and timely repayment of the bonds' principals and interests in the ,'Jrrnncies in which such bonds are purchased. I 2. To transioi-, donate, bequeath or pledge their No. i 4 3 (09-9-2003) OFFICIAL GAZETTE r,•x:ds in credit relations; the Vietnam dong bonds may 1Ja li.·,tr;d on!J t1mJed in the securitis.s market :; 130:,ci ovmers being individuals, apart from the righ\3 dolimid in Clauses 1 and 2 above, shall be exempt 1rcrr porsona: income tax on the income amounts earned from G0vemment bonds and may custody their bonds at thn State Treasury system free-of-charge. bidding shall bf; the interest rates formed through the bidding results. The interest rates of bonds issued in the forms of retail via the State Treasury system, issuance agents or issuance underwriters shall be decided by the Minister of Finance on the basis of consulting with the State Bank and referring the market interest rates. The interest rates of Government bonds must be t. .. Bond owners being credit institutions, apart from attractive, but rrlust not cause difficulties and obstacles ti 1f.) i ig 1 ts defined in Clauses 1 and 2 above, may trade to the mobilization of capital of commercial banks. in CO\•emment bonds in the monetary market as well .:w clbcount and re-discount Government bonds c:c~nrc!ing to the S1ate Bank's regu!ations. Article5.· 1 . Bondi, shall be issued by the Ministry of Finance with 1110 term of 05 years or 1 0 years. In case of necessity, the Minister of Finance shall decide on the additional issuance of bonds with shorter or longer trmns. 2. !3onds shall be issued in the form of book-entries or c ➔r!ificatos; registered or bearer, :J. ,-:iar valut1 of Government bonds are prescribed as rolL:ms: al F;or bonds issued and repaid in Vietnam dong, th:-3 m:nimurn par value shall be VND 100,000; other par vaiues shall be the multiples of VND 100,000, to be speGif!ed by the Minister of Finance; h/ For boncis issued and repaid in foreign currencies, the Nli 1 i.ster of Finance shall provide specific regulations tor oad1 issuance drive. 0, '/iGtnarn dong bonds shall be issued in the forms :-of ,,,tpi! via tho State Treasury system, bidding via the cr:,w:entratod securities trading market, issuance agents ur ;:,;suanCEJ underwriters, and be listed and traded in tr1~, Socurii,es Trading Center. S. r=oreign-currency bonds shall be issued in the form of mtEiil via the State Treasury systc➔m or bidding via the l~cin ki :1q system, '3. The interest rates ot bonds issued in the form of Article 6.- ! 1. The Government bonds' principals shall be repaid in lump-sum upon their maturity while the interests shall be repaid annually via the State Treasury system or authorized repayment agents. 2. The sources for repayment of the Government bonds' interests as well as payment of expenses for the issuance and repayment thereof shall be apportioned within the annual State budget estimates. The sources for repayment of the mature bonds' principals shall bi~ partly allocated from the source obtained through the next issuance of Government bonds or apportioned partly in the annual State budget estimates according to the Prime Minister's decisions. Article 7.- Responsibilities of the concerned ministries and agencies shall be prescribed as follows: ' 1 . The Ministry of Finance: To decide on the issuance modes and forms, the terms, the issuance levels and issuance time and organize the issuance of Government bonds in accordance with plans and implementation tempo of works already ,approved by the Prime Minister; To effect th~ accounting and settlement of the capital source:, mobilized from Government bonds as well as the use thereof; to organize the management, allocation, payment and settlement of investment capital of works in strict accordance with law provisions; To allocate the State budget source for the repayment of the Government bonds' principals and interests OFFICIAL GAZETTE ,1ccordlrig to tl1e provisions in Article 6 of this Decision. /1nnuall~,1, to report to the Prime Minister on the niobi!iw.tion, allocation and payment of investment cauital tu works: .. -f;J assume the prime responsibility and coordinate vii:1 tt"ie Ministry of Planning and Investment, the State :.,:o ',i, :m ::! con, :er ned agencies in submitting to the Prime Hink;ter for handling problems arising in the course of ii nr!emrn1tation. :?. The State Bank: To coordinate with the Ministry of Finance in organ;zing the bidding of Government bonds via the hanking system: To coordinate with the Ministry of Finance in c:ab1latin9 the interest rates and macro-balances ,-01;,cwlirfJ currencies and exchange rates; · To direct credit institutions to participate in the purch3Se of foreign currency bonds; lo re-purchase the foreign currency amounts obtained through the issuance of foreign currency bonds to increase the State's forelgn exchange reserves and sell foreign currencies to the Ministry of Finance for rnpaymunt of tt·,e principals and interests of foreign cum:mcy bonds upon their maturity. :3 The Ministiy of Planning and Investment: To coo1·dlnate with the Ministry of Finance in apportioninr1 investment capital according to irnplomentation 1empo ot works so as to determine the annual issuance demand; to calculate and synthesize msc;o ba!anc% in order to ensure the national financial safety; fo coordinate with the Ministry of Finance in apponioning and allocating the Slate budget sources for mpaymnnt at the Government bonds' principals and ',1tmo•;ts 8-S well as expenses for the issuance thereof :,D,:wdir g to r,e provisions in Article 6 ot this Decision. To repon mgularly or irregularly to the Prime Minis!$r on situation of investment in works; -io coordinate with the Ministry of Finance and concerned agencies in submitting to Prime Minister for handling problems arising in the course of imp!ementation. 4. The Slate Securities Commission shall coordinate with the Ministry of Finance in organizing the bidding of Government bonds via the concentrated securities market. 5. The Ministry of Culture and Information shall coordinate with the Ministry of Finance, concerned ministries and branches, and the provincial/municipal People's Committees in organizing the propagation of the purposes and significance of the Government bond issuance for people of all strata to know and actively participate therein. 6. The ministries, the ministerial-level agencies, the agencies attached to the Government and the People's Committees at various levels shalt, within the scope of their tasks and powers, have to coordinate with Vietnam Fatherland Fron,t of various levels in organizing, propagating and 'rr1cibilizing -people of all strata to take part in the purchase of Government bonds, 7. The ministries and branches tasked to make investments in the country's important traffic and irrigation works with the sources of the Government bond capital shall have to concentrate efforts on directing and organizing the implementation thereof in an urgent and definite manner, ensuring quality and strict compliance with the prescribed regimes, thus putting the works into efficient use soon; absolutely not to let loss, wastefulness and negative phenomena occur. Article 8.- This Decision takes effect 15 days after its publication in the Official Gazette. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the presidents of the provincial/ municipal People's Committees shall have to implement this Decision. Prime Minister PHAN VAN KHAI