Circular No. 24 TC/KBNN REGULATES THE MANAGEMENT, ISSUANCE AND PAYMENT OF TREASURY BILLS OF THE STATE TREASURY

CIRCULAR

Regulations on the management, issuance, and payment of state treasury bills

state treasury

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Implementing the Directive of the Chairman of the Council of Ministers on the issuance of state treasury bills, the Ministry of Finance provides guidance as follows:

I. SPECIFIC PROVISIONS ON THE MANAGEMENT, ISSUANCE AND PAYMENT OF STATE TREASURY BILLSNATIONAL TREASURY BILL PAYMENT

1/ State treasury bills (referred to as KBNN bills) are a type of certificate issued by the Ministry of Finance pursuant to the Decision of the Chairman of the Council of Ministers for the purpose of mobilizing idle funds in circulation for investment in economic development and to offset budget expenditures, contributing to combating inflation. KBNN bills are recorded and paid in Vietnamese dong.

2/ The amount of funds raised, term, interest rate, and area of issuance of KBNN bills for each round shall be announced by the Minister of Finance or delegated to the Director of the State Treasury Department to announce.

3/ All proceeds from selling KBNN bills shall be recorded in the Central Government Budget and spent according to plans approved by the Minister of Finance. All expenses for paying KBNN bills (both principal and interest) and costs related to issuing and paying KBNN bills shall be recorded in the Central Government Budget.

4/ KBNN bills may be sold to Vietnamese citizens. The State guarantees to pay KBNN bills according to the agreed terms with the stipulated interest rate.

5/ KBNN bills are certificates with the value of money and must be managed strictly and securely to ensure absolute safety. Any cases of abuse or embezzlement of KBNN bills must be compensated materially, and serious cases must be pursued criminally.

6/ Purchasers of KBNN bills can buy without a limit, but the minimum amount of a single KBNN bill is 20,000 Vietnamese dong (twenty thousand Vietnamese dong).

7/ Upon maturity, KBNN bills will be settled in full at once including both principal and interest. Monthly compound interest will not be calculated. In case of late settlement, purchasers of KBNN bills will only receive interest for the issuance period of the KBNN bills.

8/ Currently, KBNN bills cannot be transferred, bought, or sold, nor can they be used as collateral under any circumstances. Purchasers of KBNN bills may authorize others to collect on their behalf.

In the event that the owner of a KBNN bill dies, the lawful heir shall inherit the amount of the bill.

If a KBNN bill is lost, the owner must immediately report the loss to the treasury unit where the bill was purchased for tracking and handling.

KBNN bills issued by a particular state treasury unit shall be settled at that same state treasury unit.

Depending on the situation and specific conditions, the Minister of Finance will regulate the expansion or reduction of the scope and target of issuing and settling KBNN bills.

9/ After completing the procedures and receiving payment, the state treasury unit selling the KBNN bills must immediately hand over the KBNN bill to the purchaser, ensuring all prescribed elements are accurately and clearly recorded on the bill. The state treasury unit must separately account for the proceeds from selling KBNN bills according to regulations. The State Treasury Department will monitor and account for the total proceeds from selling KBNN bills to record them in the Central Government Budget based on usage plans approved by the Minister of Finance.

10/ All expenses for paying KBNN bills (including both principal and interest) shall be covered by the Central Government Budget. In cases where the Central Government Budget funds have not been transferred in time, local state treasuries may temporarily use their own reserves to make payments. These payments must be accounted for separately. Temporary use of treasury reserves for paying KBNN bills must not affect the regular payment needs of local state treasuries.

11/ Costs associated with issuing and paying KBNN bills shall be funded by the Central Government Budget, with a planned ratio of 1% of the total revenue from each issuance round. The State Treasury Department will plan the use and settle actual expenditures after the issuance round ends. These costs include:

- Costs for printing KBNN bills, accounting documents, ledgers, and other materials necessary for issuing and paying KBNN bills.

- Costs for organizing training sessions, publicity...

- Transportation costs, storage costs, organization of sales points, commission fees, office supplies, overtime allowances...

12/ The state treasury system has the responsibility to:

12.1/ Organize the printing and secure storage of KBNN bills strictly and safely; the State Treasury Department together with the State Budget Department will develop plans for issuing and paying KBNN bills.

12.2/ Organize the sale and payment of KBNN bills promptly, accurately, and conveniently for purchasers while adhering to national regulations.

12.3/ Organize the accounting and bookkeeping of KBNN bills' issuance and payment operations uniformly and strictly to ensure the safety of state assets throughout the state treasury system.

12.4/ Proceeds from selling KBNN bills must be promptly centralized and fully deposited into the Central Government Budget by the State Treasury Department.

12.5/ Closely coordinate with banking authorities to plan and balance cash, ensuring the use of cash from selling KBNN bills and timely payment of matured KBNN bills.

12.6/ Units and staff of the state treasury assigned to sell and pay KBNN bills must fully comply with the provisions of this Circular. It is strictly prohibited to abuse assigned duties to embezzle state assets such as buying and selling KBNN bills before maturity to earn interest upon maturity, withdrawing state funds for use when bill holders claim their payments late or overdue... All cases of lost KBNN bills must be documented, clearly identifying individual and unit responsibilities as grounds for handling.

12.7/ Implement regular reporting systems and final reports after each issuance and payment round of KBNN bills. State treasury units report to higher-level state treasuries on the sale and payment of KBNN bills. The State Treasury Department reports to the Ministry of Finance on the amounts received and paid out for KBNN bills and settles all operational costs for issuing and paying KBNN bills.

Units of the State Treasury report to their superior State Treasury on the sale and payment of State Treasury bills.

The State Treasury Department reports to the Ministry of Finance the amount of revenue and payment of State Treasury bills and settles the entire cost of business operations for issuing and paying State Treasury bills.

II. IMPLEMENTATION

This Circular takes effect from the date of signature and shall be applied when issuing and settling all short-term State Treasury bills (three months, six months, twelve months). Previous regulations that conflict with this Circular are hereby invalidated. The Director of the State Treasury Department and the Heads of related units shall base themselves on the provisions of this Circular to provide guidance and organize its implementation.

The Director of the State Treasury Department and the Heads of related units shall base themselves on the provisions of this Circular to provide guidance and organize its implementation./.

                                                                    Nguyen Sinh Hung

                                                                        (Signed)