Circular No. 107/2020/TT-BTC guiding the repurchase transactions with fixed terms of Government bonds from the temporarily idle state treasury funds of the State Treasury.

CIRCULAR

GUIDELINES FOR THE REVERSE REPURCHASE OF GOVERNMENT BONDS FROM TEMPORARILY IDLE STATE TREASURY FUNDS

On the basis of State Budget Law June 25, 2015;

On the basis of Securities Law November 26, 2019;

Decree No. Decree No. 24/2016/NĐ-CP April 5, 2016, by the Government, stipulates the management regime for state treasury funds;"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."Decree No. 95/2018/NĐ-CP

Decree No. June 30, 2018, by the Government, stipulates the issuance, registration, , custody,intention, listing, and trading of government securities on the stock market;intentionthe Government on the organization,"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."functions,

Pursuant to DecreeNo. 87/2017/NĐ-CP missions,y and structure of the Ministry of Finance; For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.decisions of the Director General Sports.onof the State Treasury;, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP LIMITATION of Circulars issued by the Minister of Justice guiding certain aspects of management of civil servants, officials, employees under the civil enforcement organization system.The Minister of Finance issues this Circular to guide reverse repurchase transactions of government bonds (TPCP) from temporarily idle state treasury funds (NQNN) of the State Treasury.

Pursuant to the proposal of the Director of the Department of Ethnic Affairs and Religion Propaganda;on This Circular guides the implementation of reverse repurchase transactions of government bonds (TPCP) from temporarily idle state treasury funds (NQNN) in Vietnamese dong (VND) of the State Treasury (KBNN)., amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP1. State Treasury.No.2. Securities Exchange.

3. Vietnam Securities Depository and Clearing Corporation.June 2024;4. Commercial banks (CBs) meeting the conditions for reverse repurchase transactions of TPCP with the State Treasury."b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."5. Organizations and individuals related to reverse repurchase transactions of TPCP.ỗIn addition to the terms defined in Circular No. 30/2019/TT-BTC dated May 28, 2019, issued by the Ministry of Finance, guiding the registration, custody, listing, trading, and settlement of government securities, government-guaranteed bonds issued by policy banks, and local government bonds (hereinafter referred to as Circular No. 30/2019/TT-BTC), the following terms in this Circular shall be understood as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. Reverse repurchase transaction of TPCP is a transaction of buying and reselling as prescribed at point b, Clause 1, Article 13 of Circular No. 30/2019/TT-BTC. The State Treasury is the buyer in the first transaction and the seller in the second transaction; the State Treasury uses temporarily idle state treasury funds to buy TPCP and receives ownership rights of TPCP from the seller, while simultaneously agreeing to sell back and transfer ownership of that quantity of TPCP to the seller after a specified period at a specified price.

Article 2. Applicability

2. Reverse repurchase term of TPCP: is the actual number of days counted from the payment date of the first transaction to the payment date of the second transaction.

3. Payment date of the first transaction (purchase date of TPCP): is the day when the ownership right of TPCP is transferred from the securities custody account of the CB to the securities custody account of the State Treasury opened at the Vietnam Securities Depository and Clearing Corporation and the first transaction amount is transferred by the State Treasury into the VND deposit account of the CB opened at the Securities Exchange of the State Bank of Vietnam.

4. Payment date of the second transaction (resale date of TPCP): is the day when the ownership right of TPCP is transferred from the securities custody account of the State Treasury to the securities custody account of the CB opened at the Vietnam Securities Depository and Clearing Corporation and the second transaction amount is transferred by the CB into the VND deposit account of the State Treasury opened at the Securities Exchange of the State Bank of Vietnam.

5. Remaining term of TPCP: is the remaining time (in actual days) from the reverse repurchase date of TPCP (date T) to the maturity date of TPCP.

6. Final registration date for the next interest payment period of TPCP: is the day when the Vietnam Securities Depository and Clearing Corporation determines the list of bondholders for interest and principal payments of TPCP.

Article 3. Explanation of Terms

7. Nominal accrued interest inclusive price of TPCP: is the price of TPCP calculated on the payment date of the first transaction and includes accumulated nominal accrued interest (if any).

8. Listed price of TPCP: is the price of TPCP calculated on the payment date of the first transaction and does not include accumulated nominal accrued interest.

9. Bond transaction with accrued interest is a transaction with a payment date occurring before or on the final registration date for the current interest payment period of TPCP.

10. Bond transaction without accrued interest is a transaction with a payment date occurring after the final registration date for the current interest payment period of TPCP.

4. Payment date for the second transaction (the date of reselling government bonds): is the date when ownership rights of government bonds are transferred from the securities account of the State Treasury to the securities account of commercial banks opened at the Vietnam Securities Depository and Central Depository Corporation, and the proceeds from the second transaction on government bonds are transferred by the commercial bank into the VND deposit account of the State Treasury opened at the State Bank of Vietnam’s Trading Center.

5. Remaining term of government bonds: is the remaining period (in actual days) from the date of the organization's purchase of government bonds with a term (date T) to the maturity date of the government bonds.

6. Final registration date for the next interest payment period of government bonds: is the date when the Vietnam Securities Depository and Central Depository Corporation determines the list of bondholders for interest and principal payments on government bonds.

7. Nominal accrued interest-inclusive price of government bonds: is the price of government bonds calculated on the payment date of the first transaction and includes nominal accrued interest (if any).

8. Listed price of government bonds: is the price of government bonds calculated on the payment date of the first transaction and does not include nominal accrued interest.

9. Interest-bearing bond transaction: is a transaction where the payment date occurs before or on the final registration date for interest payment of the current interest period.

10. Non-interest-bearing bond transaction: is a transaction where the payment date occurs after the final registration date for interest payment of the current interest period.

Article 4. Limit on the use of temporarily idle state budget funds to purchase government bonds with term repurchase

1. The limit on the use of temporarily idle state budget funds to purchase government bonds with term repurchase shall be implemented in accordance with Clause 5 of Article 1 of Circular No. 64/2019/TT-BTC dated September 16, 2019 of the Ministry of Finance amending and supplementing certain provisions of Circular No. 314/2016/TT-BTC dated November 28, 2016 of the Ministry of Finance guiding certain provisions of Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government on the management regime of state budget funds.

2. Quarterly, within five working days from the date of approval by the Ministry of Finance of the limit on the use of temporarily idle state budget funds to purchase government bonds with term repurchase, the State Treasury shall announce the total transaction limit for purchasing government bonds with term repurchase on its electronic information website.

Article 5. Conditions for government bonds accepted by the State Treasury in transactions

Government bonds accepted for use in transactions to purchase government bonds with term repurchase must meet the following conditions:

1. They are government bonds listed on the Stock Exchange, with remaining terms not exceeding one (01) year.

2. They belong to the lawful ownership of the selling party and are transferable; they are not bound by any relationship concerning collateral transactions during the term repurchase period, starting from the first transaction settlement date.

Article 6. Term of repurchasing government bonds

1. The term of repurchasing government bonds by the State Treasury includes: seven-day, fourteen-day, twenty-one-day, one-month, two-month, and three-month terms.

2. The State Treasury shall base on market conditions to decide the specific term of repurchase for each transaction, in line with the state budget fund management plan approved quarterly by the Ministry of Finance.

Article 7. Form of transaction and system for implementing term repurchase transactions of government bonds

1. Form of transaction: The State Treasury conducts term repurchase transactions of government bonds through electronic negotiation with selection, ensuring the selection of trading partners based on competitive bidding interest rates for term repurchase of government bonds; the method of determining the repurchase interest rate is multi-price, consistent with the provisions of Articles 16 and 17 of Circular No. 30/2019/TT-BTC.

2. System for implementing transactions: The State Treasury's term repurchase transactions of government bonds are conducted on the debt instrument trading system at the Stock Exchange.

Article 8. Trading partners for term repurchase transactions of government bonds and credit limits for each partner

1. The State Treasury selects commercial banks as trading partners for term repurchase transactions of government bonds that simultaneously meet the following criteria:

a) Listed in the annual list of commercial banks ranked by safety level provided by the State Bank of Vietnam to the Ministry of Finance (State Treasury) in accordance with Clause 3 of Article 14 of Decree No. 24/2016/NĐ-CP.

b) Currently members of the debt instrument trading market at the Stock Exchange.

c) Have not violated payment obligations in term repurchase transactions of government bonds with the State Treasury as stipulated in Clause 2 of Article 15 of this Circular within one (01) year (counted in days) immediately preceding the date of the State Treasury's term repurchase transaction of government bonds.

2. Credit limits for each partner:

Quarterly, based on the limit on the use of temporarily idle state budget funds for term repurchase transactions of government bonds approved by the Ministry of Finance, the State Treasury shall determine and notify in writing the quarterly credit limit for each commercial bank within five working days from the date of approval by the Ministry of Finance.

Article 9. Transaction Contracts

1. The term repurchase transactions between the State Treasury (KBNN) and Commercial Banks (NHTM) shall be carried out pursuant to the Contract, including framework contracts and supplementary contract appendices.

2. Within three working days from the date of receipt of the list of commercial banks ranked according to safety levels provided by the State Bank of Vietnam in accordance with Clause 3, Article 14 of Decree No. 24/2016/NĐ-CP, the State Treasury shall notify in writing each commercial bank that meets the criteria specified in Clause 1, Article 8 of this Circular; thereafter, it shall organize the signing of framework contracts with commercial banks that agree to transact with the State Treasury, ensuring completion within ten working days from the date the State Treasury sends the notification.

In case the State Bank of Vietnam issues a document to adjust the list of commercial banks ranked according to safety levels, the State Treasury shall notify in writing each commercial bank added to or removed from the list within three working days from the date of receipt of the adjustment document from the State Bank of Vietnam.

In case the newly added commercial banks agree to transact with the State Treasury, the State Treasury shall organize the signing of framework contracts with these commercial banks, ensuring completion within ten working days from the date of sending the notification.

The framework contract shall be terminated upon mutual agreement between the State Treasury and the Commercial Bank or when the Commercial Bank fails to meet the criteria specified in Clause 1, Article 8 of this Circular through the execution of a termination agreement. If the Commercial Bank still has supplementary contracts in effect, the State Treasury shall terminate the framework contract with such Commercial Bank on the last day of the final supplementary contract signed with the State Treasury.

3. The main contents of the framework contract include:

a) Legal basis for implementing the contract.

b) Date of the contract, place of contract execution.

c) Information about the buyer and seller, including: name, address, telephone number, account number and location where the account is opened (deposit account and securities custody account) of the buyer and seller.

d) Transaction method (excluding the content regarding the interest rate for term repurchase, term of term repurchase of Government Bonds, conditions and terms of Government Bonds, volume of Government Bonds traded, initial and subsequent transaction values).

đ) Payment method and transfer of Government Bonds.

e) Rights and obligations of the parties.

g) Breach of contract and handling of breach.

h) Dispute resolution.

i) Provisions on the effective date of the contract, duration of the contract and termination of the contract; changes to terms and conditions stipulated in the contract.

k) Other related contents (if any).

4. Based on the signed framework contract, the State Treasury and Commercial Bank sign supplementary contracts for each transaction. The main contents of the supplementary contract include:

a) Information about the Government Bonds subject to term repurchase: Government Bond code, par value, issuance date, maturity date, nominal interest rate, principal and interest payment method, remaining term of the Government Bond, risk mitigation ratio.

b) Details of the first transaction: Term repurchase interest rate of Government Bonds; term of Government Bond repurchase; interest amount for term repurchase of Government Bonds; first transaction settlement date; quotation, volume of Government Bonds traded and value of the first transaction corresponding to each Government Bond code.

c) Details of the second transaction: Second transaction settlement date; volume of Government Bonds traded and value of the second transaction corresponding to each Government Bond code.

d) Other related contents (if any).

5. The framework contract and supplementary contracts shall be established in writing, bearing the seals and signatures of authorized representatives of the parties executing the contract.

Chapter II

SPECIFIC PROVISIONS

Article 10. Procedure for the sale and repurchase of Government Bonds (TPCP)

1. From 9:00 on the day of the scheduled sale and repurchase of TPCP, the State Treasury sends out bidding requests regarding the TPCP sale and repurchase round to the trading system of debt instruments at the Securities Trading Exchange for commercial banks that have signed framework contracts. The content of the bidding request includes:

a) The total volume of TPCP calculated based on the face value of TPCP intended for bidding corresponding to each type of TPCP repurchase term.

b) The date of the scheduled sale and repurchase of TPCP (date T), the start date of trading (date T+1).

c) The first transaction settlement date (date T+2), the second transaction settlement date for each type of TPCP repurchase term.

2. From 9:00 to 10:00 on date T, commercial banks send firm bidding orders according to the trading regulations of the Securities Trading Exchange, ensuring that the total bid volume across all repurchase terms does not exceed the remaining transaction credit limit of the bank (bids sent after 10:00 are invalid). Specifically:

a) For each type of TPCP repurchase term, each commercial bank may submit up to five (05) bids for each type of TPCP repurchase term, ensuring that the total bid volume does not exceed the total volume requested by the State Treasury for that term.

b) Each bid includes the repurchase interest rate (to two decimal places); one (01) or more TPCP codes used as collateral, the bid volume calculated based on the face value of TPCP, the risk protection ratio, the listed price corresponding to each TPCP code, and other related contents. Among these, the risk protection ratio is determined according to the provisions of Clause 1, Article 12 of this Circular; the listed price is determined according to the formula specified in Article 13 of this Circular.

c) The bid volume calculated based on the face value of TPCP for each bid must not be lower than the minimum level announced by the State Treasury during each period.

3. From 10:00 to 10:15 on date T, the State Treasury opens the bids on the trading system of debt instruments at the Securities Trading Exchange. Based on the bids received through the trading system of debt instruments at the Securities Trading Exchange, the State Treasury determines the results of the TPCP sale and repurchase according to the provisions of Article 11 of this Circular.

4. Based on the results determined under Clause 3 above, no later than 13:30 on date T, the State Treasury selects the bids from the trading system of debt instruments at the Securities Trading Exchange to execute the transactions.

5. Signing supplementary contract annexes:

No later than 16:30 on date T, the State Treasury signs supplementary contract annexes with each selected commercial bank. In which, for each selected commercial bank, each supplementary contract annex is signed corresponding to one bid selected from that bank.

After 16:30 on date T, the State Treasury stops signing supplementary contract annexes with commercial banks. The State Treasury cancels the results of the TPCP sale and repurchase of selected commercial banks that have not completed the signing of supplementary contract annexes according to the trading regulations of the Securities Trading Exchange, ensuring completion no later than 17:00 on date T.

6. First and second transaction settlements:

Based on the signed supplementary contract annexes, the State Treasury and commercial banks carry out the first and second transaction settlements (money transfer and TPCP transfer) according to the provisions of Articles 29, 31, and 32 of Circular No. 30/2019/TT-BTC.

Article 11. Determining the Results of Repurchase Transactions with Government Bonds (TPCP)

1. Method for determining the repurchase interest rate for TPCP:

The repurchase interest rate for TPCP applied to each Commercial Bank (NHTM) is the bid rate of that bank selected in descending order and satisfying both of the following two conditions simultaneously:

a) The lowest repurchase interest rate for TPCP must not be lower than the minimum rate specified by the State Treasury (KBNN) during each period.

b) The cumulative volume of repurchase transactions at the lowest repurchase interest rate must not exceed the volume announced by the KBNN.

2. Method for determining the volume of repurchase transactions for each Commercial Bank:

a) The volume of repurchase transactions for each participating Commercial Bank corresponds to the bid volume of that bank.

In case the cumulative bid volume at the selected lowest repurchase interest rate exceeds the volume announced by the KBNN for that repurchase term, after deducting the bid volumes at higher interest rates, the remaining volume announced by the KBNN will be allocated among the banks bidding at the selected lowest repurchase interest rate according to their bid volumes, rounded down to the nearest billion VND. Any remaining volume after rounding down to the nearest billion VND will be allocated to the first bank bidding at the selected lowest repurchase interest rate; if this allocation exceeds the remaining bid volume of that bank, the excess will continue to be allocated to the next bank until the announced volume is fully distributed.

b) If the bid volume of a Commercial Bank exceeds its remaining transaction debt limit, the bid volume considered for the repurchase transaction result of that bank will be its remaining transaction debt limit, prioritizing shorter repurchase terms and higher bid rates.

c) The specific determination of the volume of repurchase transactions for each Commercial Bank shall be carried out in accordance with the guidelines set forth in the Appendix to this Circular.

Article 12. Value of the First Transaction, Interest on Repurchase, and Value of the Second Transaction

1. The value of the first transaction for the State Treasury corresponding to each bid order is determined by the formula:

V₁ = ΣV_i

Where, V_i is the value of the first transaction corresponding to each TPCP code of the selected bid order, calculated as follows:

a) For periodic-interest-paying TPCP:

V_i = GG x (1 - H) x KL

Where:

V_i: The value of the first transaction corresponding to TPCP code i of the selected bid order (rounded down to the nearest VND).

GG: The nominal interest rate-inclusive price of one (01) bond of TPCP code i, calculated according to the provisions of Article 13 of this Circular.

H: The risk protection ratio converted to a decimal, stipulated as 5% of the nominal interest rate-inclusive price of the TPCP.

KL: The volume of TPCP traded corresponding to TPCP code i (equal to the repurchase volume of that TPCP code calculated based on face value/face value of the bond).

b) For non-periodic-interest-paying TPCP:

V_i = of x (1 - H) x KL

V_i: Value of the first transaction corresponding to government bond code i of the selected bid order (rounded down to the nearest dong).

G: The listed price of one (01) bond of TPCP code i, calculated according to the provisions of Article 13 of this Circular.

H: The risk protection ratio converted to a decimal, stipulated as 5% of the nominal interest rate-inclusive price of the TPCP.

KL: The volume of TPCP traded corresponding to TPCP code i (equal to the repurchase volume of that TPCP code calculated based on face value/face value of the bond).

2. The interest on repurchase transactions with TPCP is determined for each bid order and according to the following formula:

                                            T
 L = V₁ × R × ———————————————
                             Number of actual days in the year

Where:

a)L: Interest on repurchase transactions with TPCP (rounded down to the nearest VND).

b) R: The repurchase interest rate for TPCP (%) corresponding to each bid order.

c) T: The repurchase term of TPCP (days), from the settlement date of the first transaction to the day immediately preceding the settlement date of the second transaction.

d) Number of actual days in the year: The number of actual days in the year containing the settlement date of the first transaction.

3. The value of the second transaction for the State Treasury corresponding to each bid order is determined by the following formula:

V₂ = V₁ + L - ΣC_i

Where:

a)V₂: The value of the second transaction.

b) C_i: The nominal interest of TPCP code i received by the State Treasury (if any).

Article 13. Nominal Yield Accreted Price, Accumulated Nominal Yield, and Listed Price of Government Bonds (TPCP)

1. Nominal Yield Accreted Price:

a) Determining the price of one (01) TPCP with a fixed nominal interest rate, paying interest periodically:

- For TPCP paying interest twelve (12) times a year, the price of one (01) TPCP is determined as follows:

Where:

GG: The price of one (01) TPCP (rounded down to the nearest dong).

MG: Face value of Government Bonds.

L_{specialized agency under the People's Committee of the province/city.}: Nominal interest rate of TPCP (%/year).

d: The actual number of days between the first transaction payment date and the next interest payment date.

E: The actual number of days within the interest payment period for the TPCP being repurchased on a term basis.

t: The number of interest payments of the TPCP between the first transaction payment date and the maturity date of the TPCP.

Lt: Discount rate of TPCP (%/year), which is the yield to maturity (YTM) announced by the Stock Exchange on the day it organizes the term repurchase of TPCP for the bond code used in the transaction on the Stock Exchange's electronic information page (yield curve section).

- For TPCP paying interest six (06) times a year:

+ In case the term repurchase date of TPCP is before or on the last registration date of the next interest payment period, the price of one (01) TPCP is determined as follows:

+ In case the term repurchase date of TPCP is after the last registration date of the next interest payment period, the price of one (01) TPCP is determined as follows:

Where:

GG: The price of one (01) TPCP (rounded down to the nearest dong).

MG: Face value of Government Bonds.

L_{specialized agency under the People's Committee of the province/city.}: Nominal interest rate of TPCP (%/year).

d: The actual number of days between the first transaction payment date and the next interest payment date.

E: The actual number of days within the interest payment period for the TPCP being repurchased on a term basis.

t: The number of interest payments of the TPCP between the first transaction payment date and the maturity date of the TPCP.

Lt: Discount rate of TPCP (%/year), which is the yield to maturity (YTM) announced by the Stock Exchange on the day it organizes the term repurchase of TPCP for the bond code used in the transaction on the Stock Exchange's electronic information page (yield curve section).

b) Determining the price of one (01) TPCP that does not pay periodic interest: The nominal yield accreted price equals the listed price calculated according to the formula prescribed in point c, Clause 3 of this Article.

c) The Ministry of Finance shall announce the method for determining the nominal yield accreted price in cases where the nominal interest rate of TPCP is a floating rate when it arises.

2. Accumulated Nominal Yield:

a) Determining the accumulated nominal yield on the trading day with rights:

Where:

Cc: Combined nominal interest on the ex-dividend date.

MG: Face value of Government Bonds.

where Lc: Nominal interest rate of the bond (%/year); k: Number of interest payments in a year.

Dn: The number of days from the first transaction payment date to the next nearest nominal interest payment date or from the first transaction payment date to the maturity date of the bond.

E: The actual number of days within the interest payment period for the TPCP being repurchased on a term basis.

b) Determining the accumulated nominal yield on the trading day without rights:

Where:

Cx: Combined nominal interest on the non-ex-dividend date.

MG: Face value of Government Bonds.

where Lc: Nominal interest rate of the bond (%/year); k: Number of interest payments in a year.

Dn: The number of days from the first transaction date to the next nearest nominal interest payment date or from the first transaction date to the maturity date of the bond.

E: The actual number of days within the interest payment period for the TPCP being repurchased on a term basis.

c) The accumulated nominal yield in cases where the payment date coincides with the nominal interest payment date is determined as 0 (zero).

3. Listed Price of TPCP:

a) For bonds with end-of-period interest payment method:

- Determining the listed price on the trading day with rights:

G = GG - Cc

Where:

G: Listed price (rounded down to the nearest dong).

GG: Nominal interest-accumulated price of one (01) TPCP.

Cc: Combined nominal interest on the ex-dividend date.

- Determining the listed price on the trading day without rights:

G = GG + Cx

Where:

G: Listed price (rounded down to the nearest dong).

GG: Nominal interest-accumulated price of one (01) TPCP.

Cx: Combined nominal interest on the non-ex-dividend date.

- Determining the listed price in cases where the first transaction payment date coincides with the nominal interest payment date:

G = GG

Where:

G: Listed price.

GG: Nominal interest-accumulated price of one (01) TPCP.

b) For bonds with beginning-of-period interest payment method:

- Determining the listed price on the trading day with rights:

dm=GG + Cx

Where:

G: Listed price (rounded down to the nearest dong).

GG: Nominal interest-accumulated price of one (01) TPCP.

Cx: Combined nominal interest on the non-ex-dividend date.

- Determining the listed price on the trading day without rights:

dm=GG+Cx + MGxRc

Where:

G: Listed price (rounded down to the nearest dong).

GG: Nominal interest-accumulated price of one (01) TPCP.

Cx: Combined nominal interest on the non-ex-dividend date.

MG: Face value of Government Bonds.

where Lc: Nominal interest rate of the bond (%/year); k: Number of interest payments in a year.

- Determining the listed price in cases where the payment date coincides with the nominal interest payment date:

G = GG + MG X Rc

Where:

G: Listed price (rounded down to the nearest dong).

GG: Nominal interest-accumulated price of one (01) TPCP.

MG: Face value of Government Bonds.

where Lc: Nominal interest rate of the bond (%/year); k: Number of interest payments in a year.

c) For TPCP that does not pay periodic interest:

Where:

G: The price of one (01) TPCP (rounded down to the nearest dong).

MG: Par value of TPCP.

a: The number of days from the first transaction payment date to the maturity date of the TPCP.

E: The number of days within the assumed interest payment period for the TPCP being repurchased on a term basis.

Lt: Discount rate of TPCP (%/year), which is the yield to maturity (YTM) announced by the Stock Exchange on the day it organizes the term repurchase of TPCP for the bond code used in the transaction on the Stock Exchange's electronic information page (yield curve section).

Article 14. Handling Late Payment for First and Second Transactions

1. In case of late payment for the first and second transactions, the party delaying payment shall pay a late payment penalty to the other party. The amount of the late payment penalty is determined according to Clause 2 of this Article; the party delaying payment shall directly transfer the amount to the bank account of the other party on the same day as the actual transaction date (not included in the value of the first and second transactions).

2. The late payment penalty is calculated using the following formula:

Late payment penalty = Value of delayed transaction (VND) x Late payment interest rate (%/year) x Number of days delayed / 365 days.

Where:

a) The value of the delayed transaction is calculated based on the portion of the delayed payment (including principal and interest).

b) The late payment interest rate is set at 150% of the annual interest rate for the term government bond repurchase agreement in the supplementary contract, but not exceeding 10%/year.

c) The number of days delayed is determined by the actual number of days from the payment date specified in the supplementary contract to the day immediately preceding the actual payment date.

Article 15. Handling Cases Where Commercial Banks Fail to Make Payments to State Treasury

1. In cases where commercial banks fail to make payments to the State Treasury as committed, the State Treasury and the commercial banks shall agree and sign a supplementary contract in writing to adjust the payment time according to Clause 1 of Article 23 and Point a of Clause 4 of Article 32 of Circular No. 30/2019/TT-BTC. The commercial bank shall pay the value of the second transaction and the late payment penalty according to Article 14 of this Circular until the actual payment date.

2. After the payment deadline stipulated in Clause 1 of this Article, if the commercial bank still fails to make payments to the State Treasury, the State Treasury will hold the government bonds until maturity and receive the principal and interest of the government bonds to offset the entire payment obligation (value of the second transaction and late payment penalty) of the commercial bank; any remaining amount (if any) will be returned to the commercial bank.

Article 16. Accounting Treatment

1. The use and repayment of national treasury funds for implementing the term government bond repurchase transaction shall be accounted for in accordance with the state budget accounting regulations.

2. Revenue and expenditure from the term government bond repurchase transaction shall be recorded and summarized in the revenue and expenditure of the State Treasury's business operations according to Circular No. 180/2013/TT-BTC dated December 2, 2013 of the Ministry of Finance on the implementation of financial management mechanisms and staffing of the State Treasury.

Article 17. Disclosure of Information by the State Treasury

By the tenth day of each month, the State Treasury shall publish information on its website regarding the results of the term government bond repurchase transaction in the previous month (volume, average weighted repurchase interest rate corresponding to each term).

Chapter III

IMPLEMENTATION

Article 18. Responsibilities of Related Units

1. State Treasury

a) Implement fully all tasks, powers, and obligations related to the term government bond repurchase transaction as prescribed in Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government on the state treasury management system, Circular No. 314/2016/TT-BTC dated November 28, 2016 of the Ministry of Finance guiding certain provisions of Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government on the state treasury management system, Circular No. 64/2019/TT-BTC dated September 16, 2019 of the Ministry of Finance amending and supplementing certain provisions of Circular No. 314/2016/TT-BTC dated November 28, 2016 of the Ministry of Finance guiding certain provisions of Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government on the state treasury management system, Circular No. 30/2019/TT-BTC dated May 28, 2019 of the Ministry of Finance guiding registration, custody, listing, trading, and settlement of government debt instruments and local government bonds issued by policy banks, and this Circular.

b) Cooperate in providing information about the term government bond repurchase transaction (volume, interest rate, time, term of repurchase) with the State Bank of Vietnam.

2. Securities Exchange:

a) Organize the trading system to ensure the execution of the State Treasury's transactions as prescribed in Articles 10 and 13 of this Circular;

b) Publish the yield to maturity (YTM) for the portfolio of government bonds of the State Treasury as prescribed in Article 13 of this Circular.

3. Vietnam Securities Depository and Clearing Corporation: Carry out the settlement of the State Treasury's term government bond repurchase transaction as prescribed in Articles 29, 31, 32, and 33 of Circular No. 30/2019/TT-BTC.

Article 19. Implementation Provisions

1. This Circular takes effect from April 1, 2021.

2. This Circular replaces the term government bond repurchase provisions stipulated in Article 9 of Circular No. 314/2016/TT-BTC dated November 28, 2016 of the Ministry of Finance guiding certain provisions of Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government on the state treasury management system.

3. In cases where the referenced documents in this Circular are amended, supplemented, or replaced, they shall be implemented according to the amended, supplemented, or replacement documents./.

 

 

ANNEX

DETERMINATION OF INTEREST RATES AND ALLOCATION OF VOLUMES FOR TERM REPURCHASE OF GOVERNMENT BONDS
(Issued together with CircularNo. 1Circular No. 07/2020/TT-BTC dated December 21, 2020 of the Minister of Finance

1. In the case where there is no commercial bank exceeding the overdraft limit

Example: The State Treasury announces a term repurchase of 300 billion VND of government bonds for a 14-day term, with the minimum repurchase interest rate for government bonds determined by the State Treasury being 4.50%/year, and the bid interest rates of commercial banks as follows, then the interest rate and volume of the term repurchase of government bonds of each commercial bank would be as follows:

- The selected minimum interest rate is 4.70%/yearshall be the lowest bidding rate selected in descending order from highest to lowest, ensuring that two (02) conditions are met simultaneously: (i) Not lower than the minimum interest rate stipulated by KBNN; (ii) The cumulative amount of TPCP purchased with maturity at this interest rate does not exceed the amount announced by KBNN.

- The volume of competitive bidding for accumulated interest rates higher than 4.70%/year (from 4.80%/year and above) is 211 billion VND, thus the remaining portion is 89 billion VND compared to the volume announced by KBNN allocated to thecommercial banksbidding at the rate of 4.70%/year (the total bid volume at this interest rate is 90billion VND) according to the corresponding bidding volume ratio:

+ CommercialBank D is allocated 89 = 47.47 billion VND => Commercial Bank D is, amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP 48/90 x allocated 47 billion VND(rounded down to 1 billion VND). Commercial Bank C is allocated 20/90

+ 89 = 19.78 billion VND => Commercial Bank C is x allocated 19 billion VND.Commercial Bank B is allocated 22/90

+ Commercial89 = 21.76 billion VND => Commercial Bank B is x allocated 21 billion VND.The allocation volume for the three commercial banks bidding at 4.70%/year is 87 billion

- KVND, the cumulativevolume of TPCP purchased with maturity up to the interest rateenergy4.70%/year has been allocated is 298 billion VND - leaving a surplus of 2 billion VND compared to the volume announced by KBNN.- Assuming the bidding time of the commercial banks in ascending order is as follows: D, C,B(Commercial Bank D

bids first). Therefore, for the remaining 2 billion VND: Commercial Bank Dis additionally allocated 1 billion VND (= 48 billion VND bid - 47 billion VND already allocated) andCommercial Bank C is additionally allocated 1 billion VND.- The result of purchasing TPCP with maturity is as follows:+ CommercialBank A: 190 billion VND (50 billion VND at 5%/year, 60 billion VND at 4.9%/yearand 80 billion VND at 4.8%/year).Bank B: 42 billion VND (21 billion VND at 4.8%/year, 21 billion VND at 4.7%/year

).Bank C: 20 billion VND (at 4.7%/year).

Bank D: 48 billion VND (at 4.7%/year).2. In cases where commercial banks exceed the outstanding debt limit: Assuming Commercial Bank A has an outstanding debt limit for TPCP repurchase transactions of 5,000 billion VND, the total value of existing TPCP repurchase transaction agreements effective on the day of the TPCP repurchase auction is 4,900 billion VND. Thus, the remaining limit for Commercial Bank A is 100 billion VND.

+ CommercialAssuming the bidding rates and volumes for TPCP repurchase transactions are as follows:- For the 7-day term (KBNN calls for 300 billion VND):Repurchase volume

+ CommercialRepurchase rate

+ Commercial(billion VND)

- For the 14-day term (KBNN calls for 300 billion VND):

- For the 21-day term (KBNN calls for 300 billion VND):CommercialFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.Registered volume lAssuming the minimum repurchase rate for TPCP set by KBNN for the 7-day term is 3.50%/year, 14-day term is 4.50%/year

and 21-day term is 5.00%/year. The

repurchase rate and volume for each commercial bank are determined as follows:No.The review of Commercial Bank A's bidding orders is as follows: Prioritizing shorter terms, Commercial Bank A's bidding order for the 7-day term is reviewed first:

Therefore, bidding orders at higher rates are not considered.

+ For the 21-day term: Not considered due to the exhaustion of the remaining outstanding debt limit.

Assuming that the minimum interest rate for the term repurchase of government bonds for 7 days is 3.50%/year, 14 days is 4.50%/year,amendand 21 days is 5.00%/year. The interest rate and volume of term repurchase of government bondsđượof each commercial bank are determined as follows: specialized agency under the People's Committee of the province/city.The review of the bids of Commercial Bank A is as follows: Prioritizing shorter terms, the bid of Commercial Bank A for the 7-day term is reviewed first:

- V (VND/year): is the total investment capital allocated annually for the usable area of social housing for rent, ensuring the preservation of capital, calculated according to the following formula:At the 7-day term: The volume of term repurchase at the 7-day term of Commercial Bank A is 50 billion VND at an interest rate of 4%/year. Therefore, the remaining limit of Commercial Bank A is 50 billion VND, which will be reviewed for bids at the 14-day term (the nearest longer term).

At the 14-day term: The volume of repurchase is 30 billion VND at an interest rate of 5%/year and 20 billion VND at an interest rate of 4.9%/year, thus, Commercial Bank A

+ Thas exhausted its remaining limit.t s Therefore, bids at higher interest rates are not reviewed. đAt the 21-day term: Not reviewed due to exhaustion of the remaining credit limit. - The review of the volume and interest rate bids of Commercial Banks B, C, D is conducted similarly as in Point 1

Is the cumulative volume at the interest rates that can

be selected.

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