JOINT CIRCULAR No. 23/TT-LB On the handling of business related to the issuance of Treasury Bills for the construction of the North-South 500 kV power transmission line

JOINT CIRCULAR

On the handling of related transactions concerning the issuance of treasury bills for the construction of the North-South 500 Kilovolt (KV) power transmission line

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Pursuant to Decision No. 134/HĐBT dated April 20, 1992 of the Council of Ministers on the issuance of treasury bills to ensure value at gold prices for raising funds to construct the North-South 500 KV power transmission line. To coordinate in handling certain related transactions concerning the issuance of treasury bills, the Ministry of Finance and State Bank of Vietnam hereby jointly stipulate as follows:

1. Tasks of units under the Financial System:

a. Units under the Treasury System:

- Organize the issuance and payment of treasury bills in accordance with regulations and guidelines issued by the Ministry of Finance;

- Develop cash plans for each issuance and payment period of treasury bills and submit them to the Bank to facilitate the coordination of cash flow between the Treasury and the Bank within the region;

- Closely cooperate with tax sector units, State Banks, Commercial Banks, and Gold and Precious Stones Trading Corporations to organize the issuance of treasury bills to enterprises required to purchase them (those with accounts at banks) or to units and individuals purchasing treasury bills with gold or foreign currency (US dollars);

b. Units under the Tax Sector:

- Calculate and determine the amount of treasury bills for enterprises required to purchase them based on the decision of the Council of Ministers and guidelines from the Ministry of Finance;

- Timely notify Commercial Banks where enterprises have opened accounts about the mandatory amount of treasury bills that each enterprise must purchase within the region to facilitate joint implementation.

2. Tasks of units under the State Bank System:

a. State-owned Commercial Banks holding accounts for enterprises and the Treasury:

Based on the notification of the mandatory amount of treasury bills transferred by financial authorities, Commercial Banks shall coordinate with the Treasury to urge enterprises to comply with regulations and promptly record transactions.

- In cases where enterprises voluntarily process accounting procedures to transfer funds to purchase treasury bills (including both domestic currency and foreign currency), the Bank shall immediately credit the account of the Treasury opened at the Bank, while simultaneously notifying the Treasury to proceed with the sale of treasury bills to the enterprise.

- If enterprises fail to process the transfer of funds to purchase treasury bills within the specified time frame, or if their accounts lack sufficient funds, the Bank shall immediately inform the Treasury to address the issue with the enterprises and higher-level financial authorities. The Bank will follow subsequent decisions made by the financial authorities.

- In addition to purchasing mandatory treasury bills as notified by financial authorities, Commercial Banks may purchase additional quantities of treasury bills if their resources allow, or they may discount treasury bills held by enterprises when requested, subject to the Banks' discretion.

b. Commercial Banks and Vietnam Gold and Precious Stones Corporation, depending on organizational conditions and capabilities, shall assist the Treasury in providing services for the inspection and appraisal of foreign currencies and gold quality when individuals and units purchase treasury bills using gold and US dollars. Service fees shall be agreed upon between the Foreign Trade Bank and Vietnam Gold and Precious Stones Corporation and the Treasury.

For the gold received by the Treasury through the sale of treasury bills, if Vietnam Gold and Precious Stones Corporation deems it commercially viable, they may purchase it according to agreed quantities and prices with the Treasury.

3. Enterprises, upon receiving notifications of the mandatory amount of treasury bills from financial authorities, must proactively complete necessary procedures with the Treasury and Bank within five days to withdraw funds for purchasing treasury bills.

If accounts lack sufficient funds, enterprises must urgently seek additional sources of capital to purchase treasury bills within the prescribed timeframe.

4. Units under the Financial System and State Bank System shall have the responsibility to closely coordinate with other members of the local steering committee for the issuance of treasury bills to strictly implement the Council of Ministers' decision, the Ministry of Finance's directives, and the provisions of this Circular.

During implementation, if difficulties arise, they should report to the Joint Ministries for unified resolution measures.