Decree No. 34/1999/NĐ-CP on the issuance of national bonds for building the country in 1999

 

DECREE

Regulations on the issuance of national construction bonds in 1999

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

||| 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 national construction bonds in 1999 pursuant to Resolution No. 18/1998/QH10 dated November 25, 1998 of the National Assembly;

At the proposal of the Minister of Finance,

DECREE:

PART I
GENERAL PROVISIONS

Article 1. Purpose of issuing bonds

The Government issues national construction bonds in 1999 with the aim of mobilizing capital from the people for additional investment in irrigation, construction of infrastructure projects in rural areas, particularly the extremely difficult communes according to Resolution No. 18/1998/QH10 dated November 25, 1998 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, social organizations, and occupational organizations.

6. State-owned enterprises.

7. Other enterprises under all economic sectors.

8. Foreign organizations operating within the territory of Vietnam.

The entities specified in Clauses 4, 5, and 6 of this Article shall not use state budget funds to purchase bonds.

Chapter II
SPECIFIC PROVISIONS

Article 3. Types of currency, terms, time of bond issuance, and amount of capital raised

1. National construction bonds issued in 1999 shall be denominated in Vietnamese Dong, with a term of five years calculated from the date of issuance.

2. The issuance period begins on May 19, 1999.

3. The total amount of capital raised is VND 4,000 billion (four thousand billion dong).

Article 4. Face value of bonds

1. Bonds issued in 1999 will have a printed face value and will not bear the name of the holder.

2. The minimum face value of a bond certificate is VND 20,000 (twenty thousand dong) and the maximum face value is VND 50,000,000 (fifty million dong).

3. The Ministry of Finance shall specify the specific denominations of the bonds to ensure convenience for buyers.

Article 5. Bond certificates

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

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 spent on purchasing bonds and interest rates on bonds

Based on ensuring the value of money spent on purchasing bonds and the interest rate ratio as prescribed in Decree No. 12/1999/PL-UBTVQH10 dated April 27, 1999 on the issuance of national construction bonds, the interest rate recorded on bonds issued in 1999 is set at 10% per annum (including both the inflation rate and the interest rate of 1.5% per annum) and the interest rate over five years is 50%.

In case the actual inflation rate over five years plus the five-year interest rate (7.5%) exceeds 50%, the bondholder will be compensated by the State for the difference.

In case the actual inflation rate over five years plus the annual interest rate (7.5%) is lower than or equal to 50%, the bondholder will still enjoy the 50% interest rate as recorded on the issued bond certificate.

Article 7. Term of bond repayment

The money spent on purchasing bonds issued in 1999 will be repaid at the end of the five-year term (sixty months), with principal and interest 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 repayment

1. In special cases, if the bondholder requests early repayment, they will be fully and promptly repaid the principal and will receive interest calculated based on the amount recorded on the bond as follows:

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

b) For purchases made between twelve and less than twenty-four months, the interest rate is 10%.

c) For purchases made between twenty-four and less than thirty-six months, the interest rate is 20%.

d) For purchases made between thirty-six and less than forty-eight months, the interest rate is 30%.

đ) For purchases made between forty-eight and less than sixty months, the interest rate is 40%.

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 bondholder has the right to sell, give as a gift, leave as inheritance, or use as collateral.

2. The bondholder may not use bonds to replace money in circulation or directly in other payment relationships.

Article 10. Preservation and storage of bond certificates

1. The bondholder is responsible for preserving and protecting the bond certificate. A bond certificate that has been erased, altered, or patched up will not be repaid.

2. If the bondholder loses the bond certificate, it will not be repaid.

3. The bondholder may deposit the bond certificate at the State Treasury for safekeeping and storage and must pay a fee as prescribed by the Ministry of Finance, which shall not exceed the deposit fee at the State Bank.

Article 11. Management of bonds purchased by organizations

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

1. The issuance and repayment of bonds shall be organized safely and conveniently to serve the purchasers and repayments of bonds.

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.

3. Organizations and individuals may purchase and repay bonds at any location as prescribed in Clause 2 of this Article.

Article 13. Costs of issuing and paying Treasury Bonds shall be allocated from the state budget and managed and used according to current financial management regulations.

Costs related to the issuance and repayment of bonds shall be allocated from the state budget and managed and utilized according to the current financial management regulations.

Article 14. 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.

1. The capital raised from the issuance of national construction bonds must be fully reflected in the state budget and used for the intended purpose as prescribed in Article 1 of this Decree; at the same time, it must be publicly disclosed in accordance with the law.

2. The source of funds for the repayment of principal and interest on bonds shall be guaranteed by the state budget.

Article 15. Commendation and handling of violations

1. Organizations and individuals who achieve outstanding results in purchasing national construction bonds, in promoting the purchase of bonds, and organizing the issuance of bonds shall be rewarded by the State in accordance with the law.

2. Organizations and individuals who violate the law on bonds shall be dealt with in accordance with Articles 14 and 15 of Decree No. 12/1999/PL-UBTVQH10 dated April 27, 1999 on the issuance of national construction bonds.

Chapter III
IMPLEMENTING PROVISIONS

Article 16. Responsibilities of Ministries, sectors, and relevant agencies

1. The Ministry of Finance shall base on the income situation of the population and the financial capacity of state-owned enterprises and agencies to assign plans for promoting the purchase of bonds to provinces, centrally-administered cities, and organizations.

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

3. The Ministry of Planning and Investment shall take the lead in coordinating with relevant ministries and sectors to review and develop plans for using the raised capital from the issuance of national construction bonds for the intended purposes and submit them to the competent authority for decision-making.

4. The General Statistics Office shall be responsible for calculating and announcing the inflation rate as required by the Ministry of Finance to serve the repayment of bonds.

5. The 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 Fatherland Front to organize, publicize, and mobilize all strata of the population to respond and participate in purchasing national construction bonds.

Article 17. Effectiveness

1. This Decree takes effect from the date of signature.

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

3. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial and centrally governed city People's Committees shall be responsible for implementing this Decree.