Circular No. 203/2013/TT-BTC Amending and Supplementing Certain Provisions of Circular No. 17/2012/TT-BTC dated February 8, 2012 on the issuance of government bonds in the domestic market

CIRCULAR

Amending and supplementing certain articles of Circular No. 17/2012/TT-BTC dated February 8, 2012 guiding the issuance of government bonds in the domestic market

Pursuant to the Law on Government Debt Management No. 29/2009/QH12 dated June 17, 2009;

Pursuant to the Securities Law No. 70/2006/QH11 dated June 29, 2006 and the Law Amending and Supplementing Certain Articles of the Securities Law No. 62/2010/QH12 dated November 24, 2010;

Pursuant to the State Budget Law number 01/2002/QH11 dated December 16, 2002;

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

Pursuant to Decree No. 01/2011/NĐ-CP dated January 5, 2011 of the Government on the issuance of government bonds, government-guaranteed bonds, and local government bonds;

At the proposal of the Director of the Department of Banking and Financial Institutions;

The Minister of Finance promulgates this Circular amending and supplementing certain articles of Circular No. 17/2012/TT-BTC dated February 8, 2012 guiding the issuance of government bonds in the domestic market (hereinafter referred to as Circular No. 17/2012/TT-BTC)

Article 1. Amending and supplementing certain articles of Circular No. 17/2012/TT-BTC as follows:

1. Amending Clause 2, Article 35 as follows:

"2. Fees for organizing the issuance, paying interest and principal of bonds issued through underwriting and auction shall be paid to the following organizations:

a) 0.05% of the nominal value of bonds issued through auction shall be paid to the Hanoi Stock Exchange;

b) Underwriting fees for issuing bonds shall be paid to the main underwriter according to the agreement between the State Treasury and the main underwriter, but not exceeding 0.10% of the nominal value of distributed bonds;

c) 0.028% of the actual interest and principal of bonds paid shall be paid to the Vietnam Securities Depository;

d) 0.007% of the nominal value of issued bonds shall be paid to the State Treasury."

2. Amending Clause 3, Article 35 as follows:

"3. Fees for organizing the issuance and paying interest and principal of bonds for retail issuance shall be paid to the State Treasury at the following rates:

a) 0.10% of the total nominal value of successfully issued bonds, excluding printing costs (if any), in cases where the Central State Treasury issues through the local Treasury system;

b) 0% of the total nominal value of successfully issued bonds in cases where the Central State Treasury directly issues to organizations and individuals according to individual decisions of the Minister of Finance."

3. Amending Clause 5, Article 35 as follows:

"5. Using the issuance and payment of principal and interest fees for bonds

a) The State Treasury may use bond issuance fees for the following purposes:

- Expenses serving the issuance of bonds through the Treasury system (for retail issuance);

- Expenses for purchasing, constructing software and equipment for bond issuance work;

- Expenses for regular maintenance, upgrading, and emergency repairs of machinery, equipment, and software;

- Expenses for information advertising about bond issuance work;

- Direct expenses for each auction session and underwriting bond issuance;

- Expenses for researching and developing the bond market;

- Expenses for organizing seminars, surveys, and learning experiences for developing the government bond market.

- Expenses for annual customer meetings summarizing bond issuance work;

- Expenses for special and periodic rewards for organizations and individuals related to bond issuance work according to regulations issued by the State Treasury;

- Office supplies expenses;

- Other expenses serving bond issuance work.

b) Auction fees for bonds are revenue of the Hanoi Stock Exchange and fees for paying bond interest and principal are revenue of the Vietnam Securities Depository. The Hanoi Stock Exchange and the Vietnam Securities Depository have the responsibility to manage and use these fees in accordance with the financial mechanism of enterprises as prescribed by relevant laws."

Article 2. Effective Implementation:

1. This Circular takes effect from February 15, 2014.

2. During the implementation process, if there are difficulties or obstacles, the issuing organizations and related units shall promptly report to the Ministry of Finance for consideration and specific guidance.