Decree No. 28/2003/ND-CP on the issuance of national bonds for education construction in 2003

DECREE

||| Regulations on the issuance of national construction bonds for 2003 – education bonds

||| education bonds

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THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

||| Pursuant to the Ordinance on the Issuance of National Construction Bonds No. 12/1999/PL-UBTVQH10 dated April 27, 1999;

To implement the issuance of education bonds according to Resolution number 09/2002/QH11 dated November 28, 2002 of the National Assembly;

At the request of the Minister of Finance.

DECREE:

Chapter 1:
GENERAL PROVISIONS

Article 1. Purpose of issuing bonds

The Government issues National Construction Bonds for 2003 named Education Bonds to mobilize capital to support provinces in mountainous areas, Central Highlands, and provinces with many difficulties to achieve the goal of eliminating three-shift classrooms, temporary classrooms made of bamboo and palm leaves, and solidifying schools according to Resolution No. 09/2002/QH11 dated November 28, 2002 of the National Assembly.

Article 2. Subjects purchasing bonds

1. Vietnamese citizens residing both inside and outside the country.

2. Overseas Vietnamese.

3. Foreign individuals working and residing in Vietnam.

4. Administrative and public service agencies.

5. Political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations.

6. State-owned enterprises.

7. Other enterprises under all economic sectors.

8. Foreign organizations operating within the territory of Vietnam.

Subjects specified in Clause 4, 5, 6, and 7 of this Article shall not use state budget funds to purchase bonds.

Chapter 2:
SPECIFIC PROVISIONS

Article 3. Type of currency, term, time of bond issuance, and amount of capital raised

1. Education Bonds are issued, collected, and recorded in Vietnamese currency, with a term of five years from the date of bond issuance.

2. The issuance period starts from May 5, 2003.

3. The total amount of capital raised is VND 2,000 billion (two thousand billion Vietnamese dong).

Article 4. Form and face value of bonds

1. Education Bonds are issued in two forms:

- Unregistered bonds printed with face value (hereinafter referred to as unregistered bonds);

- Registered bonds without pre-printed face value (hereinafter referred to as registered bonds).

2. Unregistered bond certificates have a minimum face value of VND 50,000 (fifty thousand Vietnamese dong) and a maximum face value of VND 100,000,000 (one hundred million Vietnamese dong).

The Ministry of Finance shall specify each type of face value of bonds in detail to facilitate the purchase of bonds by buyers.

3. Registered bond certificates are used when organizations, enterprises, or individuals purchase bonds with a value of VND 50,000,000 (fifty million Vietnamese dong) or more. The maximum face value of registered bond certificates is VND 10,000,000,000 (ten billion Vietnamese dong).

Article 5. Bond Certificates

1. The Ministry of Finance shall stipulate the size, design, patterns, and other characteristics of bond certificates to ensure convenience for use, storage, preservation, and prevention of counterfeiting.

The Minister of Finance shall sign on bond certificates.

2. The Ministry of Finance shall organize printing, storage, and transportation of bond certificates in accordance with the provisions of the law.

Article 6. Guaranteeing the value of money invested in bonds and interest rates on bonds

Based on ensuring the value of money invested in bonds and the interest rate ratio as prescribed in the Ordinance on the Issuance of National Construction Bonds No. 12/1999/PL-UBTVQH10 dated April 27, 1999, the interest rate recorded on Education Bonds is set at 8% per annum (including the annual inflation rate and an interest rate of 1.5% per annum), and the interest rate for five years is 40%.

In case the actual inflation rate over five years plus the five-year interest rate exceeds 40%, the bondholder will be compensated by the State for the difference.

In case the actual inflation rate over five years plus the five-year interest rate is lower than or equal to 40%, the bondholder will still enjoy the 40% interest rate as recorded on the issued bond certificate.

Article 7. Payment Term for Treasury Bonds

The purchase money for Education Treasury Bonds shall be paid within the term of five years (sixty months). The principal and interest of the Treasury Bonds shall be paid in one lump sum.

In case the payment term expires and the holder has not made the payment, the principal and interest of the Treasury Bonds will be reserved in a separate account until payment. The overdue period will not accrue interest.

Article 8. Early Payment

1. In special cases, if the holder requests to pay before the due date, they shall be fully paid the principal and entitled to interest calculated on the amount recorded on the Treasury Bond as follows:

a) If the purchase time of the Treasury Bond is less than twelve months, no interest will be granted.

b) If the purchase time of the Treasury Bond is from twelve to less than twenty-four months, the interest rate is eight percent.

c) If the purchase time of the Treasury Bond is from twenty-four to less than thirty-six months, the interest rate is sixteen percent.

d) If the purchase time of the Treasury Bond is from thirty-six to less than forty-eight months, the interest rate is twenty-four percent.

đ) If the purchase time of the Treasury Bond is from forty-eight to less than sixty months, the interest rate is thirty-two percent.

2. The Ministry of Finance shall provide detailed guidance on special cases allowing early payment of Treasury Bonds.

Article 9. Rights of the Holder of Treasury Bonds

1. The holder of Treasury Bonds has the right to sell, give, donate, leave as inheritance, or use as collateral. In special cases, they have the right to request early payment as stipulated in Article 8.

2. The holder of Treasury Bonds may not use Treasury Bonds to replace currency in circulation, pay taxes, or fulfill other financial obligations with the State..

Article 10. Business of Buying and Selling Treasury Bonds

1. Credit institutions that are Vietnamese legal entities operating under the Law on Credit Institutions are permitted to engage in the business of buying and selling Treasury Bonds.

2. The Ministry of Finance shall guide the activities of buying and selling Treasury Bonds between organizations authorized to conduct such business and other organizations or individuals.

Article 11. Preservation and Storage of Treasury Bond Certificates

1. The holder of Treasury Bonds is responsible for preserving and storing the Treasury Bond certificates. Treasury Bond certificates that are erased, altered, patched, or deformed to the extent that their original contents cannot be retained shall not be paid. 2. If the holder of Treasury Bonds does not record their name when losing the Treasury Bond certificate, it shall not be paid.

3. If the holder of Treasury Bonds records their name when losing the Treasury Bond certificate, they must immediately report to the State Treasury unit where the certificate was issued. If the Treasury Bond certificate has not been misused to withdraw money, the State Treasury unit where the certificate was issued will verify and confirm as the basis for payment when the term expires.

4. The holder of Treasury Bonds may deposit the Treasury Bond certificates at the State Treasury for preservation and storage and must pay a fee as prescribed by the Ministry of Finance.

Management of Treasury Bonds Where the Purchaser is an Organization

Article 12. 1. Treasury Bonds purchased by an organization shall be managed like other assets of the entity.

2. In the event of the dissolution, bankruptcy, merger, consolidation, division, or cessation of operations of an organization that purchases Treasury Bonds, the Treasury Bonds shall be resolved according to the provisions of the law.

Place of Issuance and Payment of Treasury Bonds

Article 13. 1. The place of issuance and payment of Treasury Bonds shall be organized safely and conveniently for purchasers and payers of Treasury Bonds.

2. Treasury Bonds shall be issued and paid at State Treasury units or other agencies authorized by the Ministry of Finance.

3. Organizations and individuals may purchase and pay Treasury Bonds at any location as provided for in Clause 2 of this Article. For named Treasury Bonds, payment or transfer procedures can only be carried out at the headquarters of the State Treasury where the bonds were issued.

Costs of Issuing and Paying Treasury Bonds

Article 14. Costs of issuing and paying Treasury Bonds shall be allocated from the state budget and managed and used according to current financial management regulations.

Sources of Funds for Issuing and Paying Treasury Bonds

Article 15. 1. The funds raised from issuing Education Treasury Bonds must be fully reflected in the state budget and used for the intended purpose as stipulated in Article 1 of this Decree, while also being publicly disclosed in accordance with the law.

2. The source of funds for paying the principal and interest of Treasury Bonds is guaranteed by the state budget.

1. Organizations and individuals who achieve outstanding results in purchasing Education Treasury Bonds, in promoting the purchase of Treasury Bonds, or organizing the issuance of Treasury Bonds shall be rewarded by the state in accordance with the law.

Article 16. Commendation and handling of violations

2. Organizations and individuals who violate the law on Treasury Bonds shall be dealt with in accordance with Articles 14 and 15 of the Ordinance on the Issuance of National Construction Treasury Bonds No. 12/1999/PL-UBTVQH10 dated April 27, 1999.

Organizations and individuals who commit violations of the law on government bonds shall be handled in accordance with the provisions of Article 14 and Article 15 of the Government Bonds Issuance Law for National Construction Ordinance No. 12/1999/PL-UBTVQH10 dated April 27, 1999.

Chapter 3:
IMPLEMENTING PROVISIONS

Article 17. Responsibilities of Ministries, Sectors, and Related Agencies

1. The Ministry of Finance shall be responsible for:

a) Organizing the issuance of Educational Treasury Bonds as prescribed in this Decree;

b) Based on the income situation of the population and the financial capacity of state-owned enterprises and agencies and organizations to assign plans for mobilizing the purchase of treasury bonds to provinces and centrally-administered cities, enterprises, agencies, and organizations.

c) Ensuring the allocation of funds raised from the issuance of Educational Treasury Bonds to concentrate investment in mountainous provinces, the Central Highlands, and provinces facing many difficulties to achieve the goal of eliminating three-shift classrooms, temporary classrooms made of bamboo and palm leaves, and solidifying schools.

2. The Ministry of Education and Training shall be responsible for:

a) Reviewing, inspecting, and abolishing unauthorized fees and contributions for school construction;

b) Organizing information dissemination on the current status of educational infrastructure, lists of certain facilities and classes requiring solidification in key regions and areas as a basis for propaganda and mobilization to purchase Educational Treasury Bonds.

3. The State Bank of Vietnam shall be responsible for mobilizing credit institutions to allocate sources of funding and use capital reasonably to participate in purchasing Educational Treasury Bonds according to assigned mobilization plans.

4. The Ministry of Culture, Sports and Tourism shall coordinate with the Ministry of Finance and related ministries and sectors, provinces, and centrally-administered cities to organize propaganda on the purpose and significance of issuing treasury bonds so that all social strata understand clearly and actively participate.

5. The General Statistics Office shall be responsible for calculating and announcing inflation rates to serve the settlement of treasury bonds.

6. Ministries, ministerial-level agencies, government agencies, People's Councils, and People's Committees at all levels within their respective duties and authorities shall be responsible for coordinating with the Vietnam Fatherland Front at various levels to organize, propagate, and mobilize all social strata to enthusiastically respond and participate in purchasing Educational Treasury Bonds.

Article 18. Effective Date

1. This Decree shall take effect fifteen days from the date of publication in the Official Gazette.

2. The Minister of Finance shall be responsible for guiding the implementation of this Decree.

3. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the Central Government are responsible for implementing this Decree./.