Decision No. 1168/QD-BTC on the functions, tasks, powers, and organizational structure of the Department of Debt Management and External Finance

Pursuant to …;

Regulations on functions, tasks, powers, and organizational structure

of the Department of Debt Management and External Finance

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THE MINISTER OF FINANCE

Pursuant to Decree No. 178/2007/NĐ-CP dated December 3, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of ministries and ministerial-level agencies;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Considering the proposal of the Director of the Department of Debt Management and External Finance, the Head of the Cadre and Civil Servant Department,

DECISION:

Article 1. Position and Functions

The Department of Debt Management and External Finance is an organization under the Ministry of Finance, with the function of assisting the Minister of Finance in uniformly managing state administration over government borrowing and repayment, local government borrowing, and government-guaranteed debt (hereinafter referred to collectively as "public debt") and national foreign debt; managing state finance for international aid and financial support sources for the Government of Vietnam, and grants and financial support provided by the Government of Vietnam to other countries.

The Department of Debt Management and External Finance has legal personality, its own seal, and is entitled to open accounts at the State Treasury and banks in accordance with the provisions of the law.

The international transaction name of the Department of Debt Management and External Finance in English is: Department of Debt Management and External Finance (abbreviated as DMEF).

Article 2. Tasks and Powers

1. To submit to the Minister of Finance for issuance or to have the Minister of Finance submit to the competent authority for issuance normative legal documents, mechanisms, policies, and regulations in the following fields:

a) Borrowing and repayment of public debt and national foreign debt;

b) Financial management of ODA funds;

c) Financial management of non-reimbursable aid funds for Vietnam;

d) Financial management of financial support funds from Vietnam (grants, loans, and cooperation by the Government) for other countries.

2. Regarding the management of borrowing and repayment of public debt and national foreign debt:

a) To develop, submit to the Minister of Finance for issuance or to have submitted to the competent authority for issuance safety indicators for debt in each period, long-term strategies, medium-term programs, and annual plans on borrowing and repayment of public debt and national foreign debt. Organize implementation and guide, inspect the execution of strategies, programs, plans, mechanisms, and policies on borrowing and repayment of public debt and national foreign debt after approval;

b) To organize monitoring, analysis, and regular assessment of the status of debt, manage portfolio risk of public debt and national foreign debt and promptly propose solutions to restructure the debt portfolio in order to minimize risks and costs of the debt portfolio; organize the implementation of debt restructuring solutions of the Government and the country according to the debt resolution project or loan repayment plan approved by the competent authority;

c) To take the lead and coordinate with related units to assess the sustainability of public debt and national foreign debt in accordance with the law on debt management;

d) To take the lead and advise the Minister of Finance in developing strategies, planning mobilization, utilization, and coordination of ODA funds, analyzing and assessing the effectiveness of ODA loan usage; participate in building the ODA funding request list and during the preparation, review, and decision-making process for investment programs and projects expected to use ODA loans; take the lead and participate in the independent review process of the financier (if applicable) for selected ODA-funded projects;

đ) To submit to the Minister of Finance for issuance of regulations and guidelines on financial management and disbursement for programs and projects using ODA funds; organize implementation and guide, inspect the execution of these regulations and guidelines after approval; take the lead or coordinate with related units within the Ministry to handle financial issues during the implementation of ODA loan-funded programs and projects;

e) To submit to the Minister of Finance for decision-making or to submit to the competent authority for decision-making on strategies, plans, and financial mechanisms applicable to programs and projects funded by foreign loans, conditions for relending foreign government loans for programs and projects with the potential to recover capital;

f) To select credit institutions or state financial organizations to authorize relending of foreign government loans; organize domestic relending and monitor the recovery of relended capital; evaluate the effectiveness of the use of this capital;

g) To participate with units under the Ministry of Finance in annual financial plans (foreign capital and counterpart capital) for foreign loan-funded programs and projects; coordinate in the accounting procedures for state budget funds for foreign loans;

h) To study, propose, and implement schemes for raising foreign capital on the international capital market through the issuance of government bonds and other forms of fundraising; participate in opinions and confirm the issuance of government bonds and other commercial borrowing forms by enterprises and economic organizations within the national commercial borrowing limit; 

i) To coordinate with related units under the Ministry to organize the implementation of domestic fundraising for state budget needs and development investment. Participate in proposing solutions to develop the government bond market, develop relationships with government bond investors to maintain and develop effective capital-raising channels for the government;

k) To organize financial plan appraisal, issue, and manage government guarantees for corporate and credit institution loans in accordance with the Government Guarantee Regulations;

l) To develop repayment plans, guide, and organize the implementation of government repayments from the state budget. Manage the Repayment Reserve Fund in accordance with the provisions;

m) To organize accounting statistics and business transactions for government borrowing and repayment; compile and periodically report to the Minister of Finance to report to the competent authority on the situation of borrowing, management, use of borrowed funds, and repayment of public debt and national debt;

n) To be the focal point for providing and exchanging information on the status of government debt, public debt, and national foreign debt in accordance with current regulations on debt information collection, sharing, and disclosure; the focal point for working with organizations evaluating the status of government debt, public debt, and national foreign debt, credit rating organizations, and national credit risk assessment organizations.

3. Assist the Minister of Finance in representing the Government and the State of Vietnam in financial relations with foreign countries:

a) Organize negotiations and sign agreements pursuant to the authorization of the Minister of Finance, or advise the Minister of Finance on signing loan agreements from foreign sources for programs and projects approved according to the division of labor or delegation by the Government or the Prime Minister; related agreements on raising capital on international capital markets, agreements on handling or restructuring government foreign debts;

b) Advise the Minister of Finance or represent the Ministry of Finance as delegated by the Minister of Finance to participate as part of the Vietnamese side in intergovernmental committees, representing the Government and the State at international financial organizations and international forums;

c) Advise the Minister of Finance on the contents and forms of exchange and discussion with authorized representatives of foreign sides regarding economic, financial cooperation, and capital assistance between the Vietnamese State and foreign countries; provide opinions on financial conditions in international treaties or agreements between the Vietnamese Government and foreign sides;

4. Regarding financial management of international aid sources:

a) Guide the implementation of policies, systems, and regulations on managing financial aid sources that have been issued;

b) Prepare plans for aid to be included in the annual state budget estimate; manage finances and disburse aid funds for aid capital sources according to regulations on managing aid capital; compile and statistically report on the implementation and disbursement of aid capital quarterly and annually to the Minister of Finance; coordinate with the State Budget Department to account for aid capital in the state budget;

c) Take the lead and coordinate with relevant units to propose to the Minister of Finance or participate with relevant agencies on the allocation of aid capital; participate in appraising programs and projects expected to use aid capital;

d) Take the lead and coordinate with United Nations organizations in Vietnam and the Ministry of Planning and Investment in evaluating the management capacity of projects funded by the United Nations as assigned by the Minister of Finance;

đ) Participate with the Committee for Foreign Non-Governmental Organizations and relevant agencies in mobilizing, assessing the situation and effectiveness of foreign non-governmental organization (NGO) aid sources; take the lead in exchanging with the Ministry of Planning and Investment, the Vietnam Friendship Association, and relevant agencies, compile opinions to submit to competent authorities for decision-making on the distribution and use of non-project NGO aid sources and emergency relief funds without specific addresses;

e) Lead or participate in inspecting financial management, distribution, and use of aid for programs and projects; reconcile state budget accounting figures for aid provided to ministries, ministerial-level agencies, government agencies, and other central agencies to send to relevant units to serve annual state budget settlement work;

g) Organize the receipt, management, sale of aid goods, and collection of money for the state budget; manage and use aid in goods or cash according to committed objectives and government regulations; organize services for receiving and delivering aid goods upon commission from international organizations and project sponsors;

h) Lead or coordinate with relevant sectors, project sponsors, to resolve disputes arising during the receipt and delivery of aid; coordinate with project sponsors to prepare external reports for aid organizations (if requested) on the results of receipt: quantity, condition of goods, losses, and any issues that arise;

i) Serve as the focal point for receiving, managing, and distributing emergency foreign aid for disaster situations such as natural disasters and floods; monitor, coordinate with relevant agencies, and report to the Government on the receipt and distribution of emergency aid goods;

5. Regarding the management of aid capital, loans, and cooperation between the Government of Vietnam and foreign countries:

a) Implement the provision of aid capital, loans, and cooperation according to the commitments of the Government; inspect or participate in inspecting the expenditure of aid capital, loans, and cooperation for Vietnamese units or foreign partners tasked with implementing programs and projects using these funds;

b) Advise the Minister of Finance to participate in providing opinions on cooperation agreements between the Government of Vietnam and governments of other countries; prepare agreements on funding (aid, loans, and other financial cooperation) for foreign countries and appoint representatives to participate in intergovernmental committees as stipulated and decided by the Government and the Prime Minister;

c) Compile and reconcile data on aid capital, loans, and cooperation annually and periodically by the Government of Vietnam with foreign countries; handle accounting procedures for the state budget for the aforementioned expenditures; lead the monitoring of debt recovery in cases of loans to foreign parties; manage the submission of recovered capital to the state budget;

6. Appoint representatives to participate in the program and project steering committees using loan and aid capital or inter-ministerial working groups at the request of the main agencies and as delegated by the Minister of Finance;

7. Organize statistical work, analysis, and forecasting for areas managed by the Bureau; implement information and reporting systems as prescribed by the Ministry;

8. Organize scientific research or cooperate in scientific research with units inside and outside the sector according to the plan and topics approved by the Minister of Finance;

9. Guide and answer questions on state management policies and financial management within the functions, tasks, and authority of the Bureau;

10. Perform other tasks and powers delegated by the Minister of Finance as prescribed by law;

Article 3. Organizational Structure

1. Office of the Bureau;

2. Planning and Risk Management Department;

3. Debt Settlement and Statistics Department;

4. Domestic Borrowing Management Department;

5. Bilateral Relations Department with European and American Countries (Department I);

6. Bilateral Relations Department with Asian, African, and Pacific Countries (Department II).

7. Department for Relations with International Multilateral Financial Organizations (Multilateral Department).

8. Department for Government Guarantees and Commercial Loans.

9. Department for International Organizations and Non-Governmental Organizations.

10. Management Unit for Receiving International Aid in Da Nang.

11. Management Unit for Receiving International Aid in Ho Chi Minh City.

12. Public Service Unit: Aid Goods Delivery and Reception Center.

The regulations on organization and operation of the Aid Goods Delivery and Reception Center shall be stipulated by the Minister of Finance.

The Management and Reception Units for International Aid in Da Nang City and Ho Chi Minh City shall be organized according to separate regulations of the Minister of Finance.

Specific tasks of the Office and its Departments shall be defined by the Director of the Debt Management and Foreign Financial Affairs Department.

Article 4. Leadership of the Department

The Debt Management and Foreign Financial Affairs Department has a Director and several Deputy Directors.

The Director is responsible before the Minister of Finance for all activities of the Department; manages staff and civil servants, and manages financial resources and assets allocated according to regulations.

Deputy Directors are responsible before the Director for the tasks assigned to them.

Article 5. Effectiveness and Responsibility for Implementation

This Decision takes effect from the date of signature and replaces Decision No. 163/2003/QĐ-BTC dated September 25, 2003 of the Minister of Finance regarding functions, tasks, authorities, and organizational structure of the Department of Foreign Financial Affairs.

The Director of the Debt Management and Foreign Financial Affairs Department, the Head of the Cadre and Civil Servant Organization Department, the Secretary-General of the Ministry of Finance, and the Heads of organizations and units under the Ministry are responsible for implementing this decision./.