Circular No. 110/2018/TT-BTC guides the repurchase and exchange of government debt instruments, government-guaranteed bonds, and local government bonds in the domestic market.

CIRCULAR

AMENDMENTS AND SUPPLEMENTS TO CLAUSE 1, ARTICLE 2 OF CIRCULAR NO. 81/2020/TT-BTC DATED SEPTEMBER 15, 2020 AMENDING AND SUPPLEMENTING CERTAIN PROVISIONS OF CIRCULAR NO. 110/2018/TT-BTC DATED NOVEMBER 15, 2018 OF THE MINISTRY OF FINANCE GUIDING THE REPURCHASE AND SWAP OF GOVERNMENT DEBT INSTRUMENTS, GOVERNMENT-GUARANTEED BONDS, AND LOCAL GOVERNMENT BONDS IN THE DOMESTIC MARKET AND CIRCULAR NO. 342/2016/TT-BTC DATED DECEMBER 30, 2016 OF THE MINISTRY OF FINANCE PROVIDING GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF DECREE NO. 163/2016/NĐ-CP DATED DECEMBER 21, 2016 OF THE GOVERNMENT GUIDING THE IMPLEMENTATION OF CERTAIN PROVISIONS OF THE STATE BUDGET LAW

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Public Debt Management Law dated November 23, 2017;

Pursuant to Decree No. 95/2018/NĐ-CP of the Government dated June 30, 2018 on the issuance, registration, custody, listing, and trading of government debt instruments on the securities market;

Pursuant to Decree No. 93/2018/NĐ-CP of the Government dated June 30, 2018 on the management of local government debts;

Pursuant to Decree No. 94/2018/NĐ-CP of the Government dated June 30, 2018 on public debt management operations;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016, issued by the Government, detailing the implementation of certain provisions of the State Budget Law;

Pursuant to Decree No. 87/2017/NĐ-CP of the Government dated July 26, 2017 on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to the proposal of the Director of the State Budget Department;

The Minister of Finance issues this Circular to amend and supplement Clause 1, Article 2 of Circular No. 81/2020/TT-BTC dated September 15, 2020 amending and supplementing certain provisions of Circular No. 110/2018/TT-BTC dated November 15, 2018 of the Ministry of Finance guiding the repurchase and swap of government debt instruments, government-guaranteed bonds, and local government bonds in the domestic market and Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Minister of Finance providing guidelines for implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government guiding the implementation of certain provisions of the State Budget Law.

Article 1.

"1. Clause 3 of Article 16 is amended as follows:"

"3. Accounting and bookkeeping for the issuance, swap, and repurchase of domestic debt instruments into the state budget:"

a) Amounts borrowed through the issuance of government bonds, treasury bills, and national construction bonds shall be accounted for at face value;

"b) In cases where there is a price difference between the selling price of government bonds and treasury bills compared to their face value, or the difference between the face value of repurchased bonds and the purchase price, such differences shall be recorded on separate accounts; at year-end, based on the balance of these separate accounts, if the difference is positive, it shall be recorded as a reduction in interest payments from the budget, and if the difference is negative, it shall be recorded as an increase in interest payments from the budget;"

"c) For any price differences arising from the swap of bonds, accounting shall not record these as revenues or expenditures of the state budget; if the difference is positive, it shall be recorded as a reduction in the budget's outstanding debt immediately after the bond swap, and if the difference is negative, it shall be recorded as an increase in the budget's outstanding debt immediately after the bond swap.""

Article 2. Implementation clause

1. This Circular takes effect from November 15, 2021.

2. During the implementation process, if difficulties or obstacles arise, relevant agencies and units shall promptly report to the Ministry of Finance for examination and specific guidance./.