Decision No. 07/2006/QD-BTC On the issuance of Government bonds for the fourth tranche in 2006 to invest in some important transportation and irrigation projects of the country

Pursuant to …;

Regarding the issuance of the fourth tranche of Government bonds in 2006 for investment in certain important transportation and irrigation projects of the country

số công trình giao thông và thủy lợi quan trọng của đất nước

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THE MINISTER OF FINANCE

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 141/2003/ND-CP dated November 20, 2003 of the Government on the issuance of Government bonds, Government-guaranteed bonds, and local government bonds;

Pursuant to Decision No. 235/2003/QD-TTg dated November 13, 2003 of the Prime Minister stipulating the functions, tasks, powers, and organizational structure of the State Treasury under the Ministry of Finance;

Pursuant to Decision No. 182/2003/QD-TTg dated September 5, 2003 of the Prime Minister on the issuance of Government bonds for investment in certain important transportation and irrigation projects of the country;

At the proposal of the General Director of the State Treasury.

Pursuant to …;

Article 1. Issuing the fourth tranche of Government bonds in 2006 for investment in the construction of certain important transportation and irrigation projects of the country with a total amount of 15,500 billion Vietnamese dong.

Article 2. Government bonds (hereinafter referred to as bonds) shall be issued and paid in Vietnamese dong, in the form of certificates or book-entry.

Article 3. Methods of issuing bonds:

3.1. Issuance through the State Treasury system:

The Minister of Finance will issue a separate decision.

3.2. Auctioning of bonds through the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange (hereinafter collectively referred to as the Stock Exchanges):

a) The objects eligible to participate in the auction of bonds are members of the bond auction market through the Stock Exchanges. Organizations and individuals wishing to purchase bonds through auctions must register with members of the bond auction market and organizations trading on the securities market.

b) Tenor of bonds: 5 years, 7 years, 10 years, 15 years.

c) Interest rate of bonds: Formed based on the results of the auction.

d) Issuance period: From February 15, 2006 to December 31, 2006.

3.3. Guarantee for the issuance of bonds:

a) Objects eligible to participate in the guarantee for the issuance of bonds: Organizations permitted to guarantee the issuance of bonds according to current regulations.

b) Tenor of bonds: 5 years, 7 years, 10 years, 15 years.

c) The interest rate of bonds and the fee for guaranteeing the issuance shall be agreed upon between the guarantors and the State Treasury in accordance with current regulations.

d) Issuance period: From February 15, 2006 to December 31, 2006.

Article 4. Principles and methods of principal and interest payment for bonds:

4.1. For bonds issued through the State Treasury (retail sales): According to a separate decision of the Minister of Finance.

4.2. For bonds auctioned through the Stock Exchanges and guaranteed issuance: To be carried out jointly by the Stock Exchanges, participating guarantors, and the State Treasury in accordance with current regulations.

4.3. Payment of principal of bonds: The principal of bonds shall be paid in one lump sum when due.

4.4. Payment of interest on bonds issued through auction and guaranteed issuance: Interest on bonds shall be paid annually when twelve months have passed from the date of purchase.

4.5. Upon maturity of principal or interest payment and the bondholder has not come to make the payment, the principal or interest amount shall be reserved for repayment when the bondholder requests it; no compound interest shall be calculated during the overdue period.

Article 5. The owner of the bond has the rights and enjoys the following benefits:

5.1. Has the right to transfer, gift, bequeath, or pledge in credit relationships.

5.2. Has the right to buy and sell, trade bonds through the Securities Trading Center for listed bonds at the Securities Trading Center.

5.3. The owner who is a credit organization may trade bonds in the money market; discount and rediscount bonds according to the regulations of the State Bank.

5.4. The owner of the bond who is an individual is exempt from personal income tax on income from bond interest and price differences from buying and selling bonds; if necessary, can deposit the bond certificate with National Treasury units for safekeeping free of charge.

Article 6. The Director General of the National Treasury shall be responsible for:

6.1. Organizing the issuance and payment of bonds in accordance with Articles 3 and 4 of this Decision.

6.2. Proactively managing the volume, term, and interest rate of bond issuance according to the bidding and guarantee methods specified in Points 3.2 and 3.3 of Article 3 of this Decision within the volume, term, and interest rate range approved by the Minister of Finance and consistent with capital usage needs.

6.3. Implementing accounting entries, reporting, and finalizing accounts for bond revenues and bond payments according to prescribed regulations.

Article 7. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

The Director General of the National Treasury shall provide detailed guidance and direct implementation throughout the National Treasury system, heads of relevant units under and directly affiliated with the Ministry of Finance, Directors of Provincial and Central City Departments of Finance and National Treasury shall be responsible for implementing this Decision./.