Circular No. 35/2006/TT-BTC guiding the implementation of Government Decree No. 07/2006/NĐ-CP dated January 10, 2006 on the financial regime of the State Bank of Vietnam

CIRCULAR

Guidelines for implementing Decree No. 07/2006/NĐ-CP dated January 10, 2006 of the Government on the financial regime of the State Bank of Vietnam

On the financial regime of the State Bank of Vietnam

_________________________

 

Pursuant to Decree No. 07/2006/NĐ-CP dated January 10, 2006 of the Government on the financial regime of the State Bank of Vietnam, the Ministry of Finance hereby issues guidelines for implementation as follows:

PART I

GENERAL PROVISIONS

1. These Circulars apply to the State Bank of Vietnam, including: The Central State Bank; provincial and centrally-administered city branches of the State Bank; domestic and foreign representative offices; units under the State Bank not receiving state budget funds (hereinafter referred to as the State Bank).

The Banking Academy, Ho Chi Minh City University of Banking, and enterprises under the State Bank shall implement financial management regimes according to general state regulations applicable to public service units and state-owned enterprises, which are outside the scope of these Circulars.

2. The State Bank may utilize revenues to cover its operational costs. After setting aside reserves as prescribed by the Law on the State Bank of Vietnam, Decree No. 07/2006/NĐ-CP dated January 10, 2006 of the Government on the financial regime of the State Bank of Vietnam, and specific provisions herein, the remaining surplus shall be remitted to the state budget.

3. The State Bank is exempt from paying taxes on its business operations and banking services.

4. The Governor of the State Bank is responsible before the Government for planning revenue and expenditure, and implementing financial management regulations stipulated in Decree No. 07/2006/NĐ-CP dated January 10, 2006 of the Government on the financial regime of the State Bank of Vietnam and detailed guidance provided in these Circulars.

5. The Ministry of Finance performs state management functions over finance, manages the State Bank's finances, and is responsible for inspecting and auditing the State Bank's revenue and expenditure activities.

Chapter II

SPECIFIC PROVISIONS

I. MANAGEMENT OF CAPITAL, FUNDS AND ASSETS

1. The State Bank is responsible for strictly managing, using reasonably, for intended purposes, and ensuring safety of state capital, funds, and assets entrusted to it, specifically:

1.1. Statutory Capital: The statutory capital of the State Bank is 50 trillion VND (fifty thousand billion VND), sourced from state capital.

The statutory capital of the State Bank is formed from the following sources:

- Existing capital up to December 31, 2005: state budget capital allocated and investment in construction and fixed asset purchases. The State Bank will coordinate with the Ministry of Finance to determine these sources.

- Annual supplementary capital:

+ State budget capital allocation (if any).

+ A portion of expenses equal to 12% of the average annual value of fixed assets for technical and banking technology development investments.

+ Increased surplus due to revaluation of fixed assets as prescribed by law.

+ Other sources (if any).

The State Bank may use statutory capital for basic construction and fixed asset purchases. Such investments must comply with laws governing investment and construction management.

1.2. Issued currency: The State Bank is responsible for managing and using issued currency for monetary policy implementation as approved by the Government.

1.3. Deposits from credit organizations, National Treasury.

1.4. Borrowed capital from international organizations, government, and foreign credit institutions.

1.5. Other capital such as exchange rate differences, price differences due to revaluation of foreign currencies, gold, and assets.

1.6. The State Bank strictly manages the national foreign exchange reserve fund as prescribed by law, using it for monetary policy implementation and ensuring international payment capability. Quarterly reports on the use of the national foreign exchange reserve fund must be submitted to the Prime Minister and the Ministry of Finance.

1.7. National Monetary Policy Implementation Fund: Annually, the State Bank allocates 10% of the revenue-expenditure difference to supplement the National Monetary Policy Implementation Fund. The State Bank leads and coordinates with the Ministry of Finance to issue regulations on the management and use of the National Monetary Policy Implementation Fund.

1.8. Risk Reserve: The risk reserve is established according to these Circulars' guidelines and used according to regulations issued by the State Bank leading and coordinating with the Ministry of Finance.

2. The State Bank shall not invest in or purchase shares of credit organizations or other enterprises.

3. The State Bank shall conduct asset valuation in the following cases:

- Asset valuation upon decision by authorized state agencies.

- Transfer or sale of assets to entities outside the State Bank.

Asset inventory and valuation shall be conducted in accordance with the law. Any increases or decreases in asset values due to revaluation shall be recorded as adjustments to statutory capital.

4. Transfer, liquidation, or sale of State Bank assets shall be carried out as follows:

4.1. State asset transfer at the State Bank shall be conducted in accordance with laws on state asset management and related regulations.

4.2. Liquidation or sale of assets for operational needs shall be decided by the Governor of the State Bank. The process shall follow legal provisions.

4.3. Proceeds from asset liquidation or sale shall be recorded as income. Liquidation or sale expenses and residual asset values shall be recorded as State Bank expenditures.

5. Asset losses at the State Bank must be determined by a Loss Review Board established by the Governor of the State Bank. The Board shall prepare a report detailing the causes and extent of the loss, and submit it to the Governor for consideration and resolution according to the principle:

- If caused by subjective reasons, the person responsible must compensate.

- For insured assets, resolution shall follow insurance contract terms.

- The remaining loss (after deducting the compensation amount from the person causing the loss and the indemnity payment from the insurance organization) shall be recorded as an expense.

- In cases of property losses due to force majeure such as natural disasters, fires, enemy actions, etc., the State Bank shall report in detail the extent of the losses and propose solutions for the Ministry of Finance to consider and resolve within its authority; in cases exceeding its authority, the Ministry of Finance shall submit to the Prime Minister for consideration and decision.

All cases of property losses and surpluses must clarify the causes, determine responsibilities, compensate for losses, and be fully recorded and reported in the annual financial statements.

6. The write-off of principal loans granted by the State Bank to customers shall be carried out based on the Decision of the Prime Minister upon the proposal of the Ministry of Finance - State Bank.

7. State capital and assets at the State Bank shall be inventoried at the end of December each year. Any discrepancies in physical inventory and value discovered through the inventory process shall be handled in accordance with the provisions of the law.

II. MANAGEMENT OF INCOME AND EXPENSES

A. General Principles:

- The State Bank has the responsibility to record all income and expenses accurately, completely, and promptly in accordance with the accounting laws.

- The State Bank's revenues and expenditures shall be recorded according to the accrual accounting principle.

- Foreign currency and gold transactions must be converted into Vietnamese Dong at the exchange rate specified by the State Bank at the time of the transaction for recording in income and expense accounts.

- All revenues and expenditures must have valid invoices or receipts as prescribed by law.

- The recognition of foreign exchange rate differences shall be carried out in accordance with the accounting standards.

- Reductions, exemptions, and refunds of interest revenue of the State Bank shall be implemented based on decisions of competent authorities and must be fully documented in the final financial settlement report.

B. Content of Financial Revenues and Expenditures:

1. Management of Income:

1.1. The income of the State Bank includes all receivables from its operations, including:

a. Income from deposit, credit, and investment activities, including:

+ Interest income from loans,

+ Interest income from deposits,

+ Income from securities investments,

+ Other income from credit activities

b. Income from open market operations: including short-term (under one year) purchases and sales of securities as stipulated (treasury bills, deposit certificates, State Bank bills, and other types of securities) in the money market.

c. Income from foreign exchange (foreign currencies and gold) transactions as prescribed;

d. Income from payment services, information, treasury, and other banking service fees;

e. Income from foreign exchange rate differences as prescribed by accounting standards

f. Fees and charges. For fees and charges under the state budget, they shall be implemented in accordance with the law.

g. Other income.

+ Income from banking activities: excess cash balances; economic contract breach penalties; income from liquidation of labor tools and low-value consumable goods; recovered income from previously written-off debts; income from publishing magazines, materials, and press...

+ Income from currency destruction.

+ Income from the sale and liquidation of fixed assets.

+ Other income.

1.2. Principles for Determining Income:

a. Income from deposit, credit, and investment activities is the interest receivable during the period determined according to the following principles:

- The State Bank records the interest receivable during the period for deposits, investments, and loans within their terms as income.

- For overdue interest receivable on loans, it shall not be recorded as income; the State Bank will monitor off-balance-sheet until collected, then record as income.

- For interest receivable on loans within their terms that have been recorded as income but the customer fails to pay on time (or before the interest payment date, the corresponding loan becomes overdue), the State Bank shall record this as an expense and monitor off-balance-sheet until collected, then record as income.

b. For remaining operational income: Income is the total amount received for services provided and goods sold accepted by customers for payment, regardless of whether the payment has been received or not.

2. Management of Expenses:

The expenses of the State Bank include all amounts incurred during the period to maintain the State Bank's operations as stipulated in Article 14 of Decree No. 07/2006/NĐ-CP dated January 10, 2006, of the Government. Some expenses of the State Bank are guided as follows:

2.1. Operational and banking service expenses, including:

2.1.1. Interest payments on deposits, interest payments on loans, expenses related to foreign exchange (foreign currencies and gold) operations; expenses related to open market operations.

2.1.2. Expenses for printing, minting, storage, transportation, delivery, issuance, recall, replacement, and destruction of currency and securities.

These expenses are implemented as follows:

a. Expenses for designing currency samples, producing currency prototypes, and special expenses serving strategic national tasks decided by the Governor of the State Bank.

b. Printing and minting costs:

- The unit price of printed currency products is approved annually by the Ministry of Finance - State Bank.

- Printing and minting costs are recorded as State Bank expenses annually in line with the volume of new currency put into circulation.

c. Currency protection expenses: Including allowances for security guards, warehouse protection, escorting money, precious metals, gems, and payment instruments; other expenses for currency protection work.

The annual budget for currency protection work is established and explained in the State Bank's annual financial plan.

d. Transportation and handling expenses: Including:

- Fuel expenses for transportation vehicles.

- Transportation rental expenses paid according to contracts signed with service providers.

- Handling expenses at ports, stations, airports, etc., according to contracts signed with service providers. Excess handling expenses for loading and unloading currency warehouses beyond the standard set by the State Bank are approved by the Ministry of Finance.

e. Expenditure on materials for counting, sorting, and packaging money: The value of materials actually used during the year (packaging, binding wire, adhesive tape...) shall be reimbursed and settled.

f. Expenditure on destroying money: The standards for expenditure related to the destruction of money, such as allowances for staff participating in the destruction work, material costs for destruction work..., shall be decided by the Governor of the State Bank. However, the allowance level for staff participating in the destruction of money must be approved by the Ministry of Finance.

2.1.3. Expenditures on payment services and information.

2.1.4. Expenditure on exchange rate differences as prescribed by accounting standards.

2.1.5. Other expenditures related to business operations and banking services.

2.2. Expenditures implemented under the quota mechanism, including:

2.2.1. Expenditures for State Bank staff, civil servants, and contractual employees, including:

- Salary and allowances according to regulations

- Payment for contractual employees' labor according to regulations

- Lunch expenses for State Bank staff, civil servants, and officials present at work throughout the year, including dedicated staff for mass organizations. The monthly expense per person shall be decided by the Governor of the State Bank but not exceed the minimum wage stipulated for state civil servants.

- Uniform expenses: The annual uniform expense for State Bank staff, civil servants, and employees shall be regulated by the Governor of the State Bank, with a maximum of VND 1,000,000 per person per year.

- Protective equipment expenses applicable to individuals entitled to protective equipment under current state regulations.

- Reward and welfare expenses for State Bank staff, civil servants, and employees, both regular and extraordinary, amounting to the total payroll for the year. Reward expenses include:

+ Rewards according to state regulations.

+ Regular and extraordinary rewards according to the Governor's regulations of the State Bank.

2.2.2. Expenditures for contributions based on salary: union fees, social insurance, health insurance, and other contributions as prescribed.

2.2.3. Support expenses for Party activities and mass organizations within the agency as prescribed by law (excluding expenses supporting industry unions, local unions, social organizations, and other agencies).

2.2.4. Hardship allowances and termination allowances:

- Recipients shall comply with legal provisions.

- Allowance levels include those prescribed by law and additional amounts from the quota budget.

2.2.5. Expenses for management and public service activities, including:

a. Office supplies expenses.

b. Postal and communication expenses:

These include postal fees, communication, telegrams, leased communication channels, telex, fax... paid according to invoices from postal authorities.

The provision of official phones at home and mobile phones for eligible personnel shall follow legal regulations.

c. Electricity, water, healthcare, and office sanitation expenses.

d. Fuel expenses: Expenses for purchasing fuel for transportation serving State Bank staff, civil servants, and employees on official duties and leaders traveling according to state regulations.

e. Travel expenses:

Travel expenses for State Bank staff, civil servants, and officials traveling domestically and internationally shall be settled according to current regulations of the Ministry of Finance.

f. Reception and conference expenses:

Including expenses for organizing conferences, international and domestic receptions, and celebrations for significant anniversaries.

These expenses shall be carried out according to current regulations of the Ministry of Finance.

g. Expenses for auditing and scientific research:

- Organizing training, upgrading, and vocational training classes, short-term computer and language courses for State Bank staff, civil servants, and officials.

- Purchasing and printing materials for training, upgrading, and vocational training, and research.

- Organizing scientific seminars.

- Research project expenses.

- Expenses for drafting and building legal documents as prescribed.

- Implementing and applying banking science and technology.

- Other expenses related to vocational training and scientific research.

Expenses for vocational training and scientific research shall be based on the training and research plans decided and approved by the Governor of the State Bank. Expenditure shall be carried out according to state regulations.

i. Expenses for innovation and technical improvement initiatives.

k. Expenses for publications, books, magazines, propaganda, and advertising, including:

- Publishing magazines, newspapers, bulletins, and professional materials.

+ Royalty payments for authors according to general regulations.

+ Printing costs settled according to contracts with printing facilities.

- Purchase of books, newspapers, and research materials.

The publication plan for magazines, newspapers, newsletters, and professional documents must be approved by the Governor of the State Bank and included in the annual financial plan;

- Propaganda and advertising expenses. Advertising expenses shall be based on advertising contracts between the advertiser and the State Bank.

2.2.6. Repair and maintenance expenses: Actual expenses incurred during the year for this purpose. Costs for repairing and maintaining assets shall not be capitalized.

2.2.7. Purchase and acquisition expenses for tools and equipment.

2.2.8. Rental expenses:

Rental expenses shall be recorded as expenses based on the amount payable in the year according to the rental contract. In cases where rental payments are made in advance for multiple years, the rental cost shall be allocated gradually over the period of asset usage.

2.2.9. Other expenses: Including incidental expenses arising during operations that are not covered by the above provisions, mainly including:

- Expenses for selling and liquidating assets.

- Remaining value of sold and liquidated assets.

- Expenses for recovering written-off debts.

- Losses after compensation from sources specified in Point 5, Section I, Chapter II of this Circular.

- Expenses for preserving records, vouchers, accounting books, and documents.

- Tax and fee payments (excluding taxes and fees when purchasing fixed assets which must be capitalized according to legal regulations).

- Insurance expenses for assets.

- For property insurance.

- Expenses for annual settlement allowances shall be determined by the Governor of the State Bank of Vietnam regarding the beneficiaries and the amount of such allowances.

- Expenses for bank staff directly and indirectly involved in bringing advertising contracts to the Banking Times and Banking Magazine. The maximum expense shall not exceed 40% of the value of the advertising contract.

- Other expenses based on actual occurrences and supported by valid documentation.

2.3. Expenses for rewarding collectives and individuals from sectors that have made outstanding contributions to the bank in accordance with the provisions of the law; the maximum expense shall equal one month's average salary during the year. The specific criteria, forms, and amounts of rewards shall be decided by the Governor of the State Bank of Vietnam.

2.4. Expenses for rewarding the bidding of Treasury bills and government bonds in accordance with the provisions.

2.5. Expenses for depreciation of fixed assets.

The depreciation of fixed assets of the State Bank of Vietnam shall be applied according to the regulations of the Ministry of Finance for enterprises.

2.6. Expenses for developing technical operations and banking technology: The State Bank of Vietnam may account for expenses up to 12% of the average value of fixed assets during the year.

2.7. Other expenses as prescribed by law.

2.8. Expenses for establishing risk reserves: Annually, the State Bank of Vietnam is allowed to establish a risk reserve fund from expenses equal to 10% of total revenue minus expenses excluding the risk reserve expense.

The risk reserve fund shall be used in accordance with the regulations promulgated by the State Bank of Vietnam in coordination with the Ministry of Finance. Any unused portion of the risk reserve fund in a given year may be carried over to the next year for continued use. In cases where the risk reserve fund is insufficient to cover losses, the State Bank of Vietnam and the Ministry of Finance shall submit proposals to the Prime Minister for handling the shortfall.

3. Expenses for bidding Treasury bills and government bonds, except for the reward expenses stipulated at point 2.4, part B, section II, chapter II of this Circular, shall be implemented as follows:

- The State Bank of Vietnam shall develop and implement plans for investment and procurement of necessary fixed assets to ensure effective performance of Treasury bill and government bond bidding tasks. The State Bank of Vietnam shall use basic construction investment funds and fixed asset procurement funds to invest in and procure fixed assets needed for Treasury bill and government bond bidding tasks.

- Other expenses serving the Treasury bill and government bond bidding tasks shall be accounted for under corresponding expense categories of the State Bank of Vietnam in accordance with the nature and content of the expenses.

4. Expenses from state budget funds or other sources shall be accounted for separately in accordance with the provisions of the law.

5. Expenses accounted for in the State Bank of Vietnam's costs must be legitimate and lawful expenses in accordance with the provisions of the law. The State Bank of Vietnam shall not account for the following expenses in its costs:

- Penalties payable to the state or customers due to material losses caused by the State Bank of Vietnam's subjective reasons during the execution of banking operations.

- Expenses for basic construction investment, procurement, renovation, and upgrading of fixed assets. Expenses for constructing, repairing, maintaining, and equipping welfare assets such as housing and rest houses for State Bank of Vietnam officials, employees, and civil servants; expenses for other welfare projects.

- Expenses for supporting localities, social organizations, and other agencies.

- Expenses from other funding sources.

C. Mechanism for allocating funds to the State Bank of Vietnam:

1. The Minister of Finance shall decide on the allocation plan for each phase for the State Bank of Vietnam starting from 2006, including the following main contents:

- Determining the total amount of expenses allocated according to the provisions at point 2.2, part B, section II, chapter II of this Circular.

- Determining the percentage to be extracted from the revenue-expenditure difference to supplement the allocated funds.

- Specifying the detailed use of savings from the allocated expenses and supplementary funds from the revenue-expenditure difference.

2. Savings from the allocated expenses and supplementary funds from the revenue-expenditure difference shall be used for the following purposes:

- Supplementing income for State Bank of Vietnam officials and employees. The maximum amount shall be specified by the Minister of Finance in the allocation plan.

- Establishing a Stability Income Reserve Fund. The contribution rate shall ensure that the fund balance does not exceed three months' average salary. The Stability Income Reserve Fund shall be used when the savings from the allocated expenses and supplementary funds from the revenue-expenditure difference are insufficient to ensure stable income for State Bank of Vietnam officials and employees. The total annual supplementary income for State Bank of Vietnam officials and employees from this fund and from the savings from the allocated expenses and supplementary funds from the revenue-expenditure difference shall not exceed the maximum amount specified by the Minister of Finance in the allocation plan.

- Providing additional subsidies beyond the general policy for those voluntarily retiring in the process of labor organization restructuring as stipulated by the Governor of the State Bank of Vietnam.

- Any remaining amount (if any) shall be carried over to the next year for continued use.

3. During the implementation of the allocation plan, if the state changes policies or systems, the State Bank of Vietnam must cover any additional costs arising from the new policies and systems itself.

4. The allocation plan shall be reviewed and adjusted in certain cases due to objective reasons leading to insufficient allocated funds to ensure the minimum wage level set by the state and maintain the operation of the State Bank of Vietnam system, specifically:

- Adding functions and responsibilities according to the decision of the competent authority,

- Natural disasters, enemy actions, and other objective reasons.

III. DISTRIBUTION OF REVENUE-EXPENSE DIFFERENCES AND PAYMENT TO THE STATE BUDGET

1. At the end of the fiscal year, the State Bank of Vietnam shall base its actual revenue and expenses incurred during the year to determine the amount to supplement the allocated funds, distribute, and pay to the state budget as follows:

1.1- Determine the actual revenue-expense difference:

 

1.2- Determine the additional allocated budget amount

1.3- Determine the income and expenditure variance of the State Bank for distribution and payment to the State Budget:

2. The income and expenditure variance of the State Bank shall be distributed according to the following procedure:

- Allocate the national monetary policy implementation fund with 10% of the income and expenditure variance.

- The remaining variance shall be paid to the State Budget.

3. The State Bank shall be responsible for timely and fully paying the entire amount of revenue and expenditure difference required to be paid to the state budget in accordance with regulations.

Quarterly, the State Bank shall temporarily pay into the state budget at 70% of the actual financial income and expenditure variance of the quarter within ten days at the beginning of the next quarter. In case of necessity, the Ministry of Finance may request the State Bank to temporarily pay more than 70% of the actual quarterly income and expenditure variance on the basis of ensuring that the temporary payments throughout the year do not exceed the annual income and expenditure variance required to be paid.

            At the end of the fiscal year, within ten days from the date when the final financial report for the year is approved by the Governor, the State Bank shall be responsible for paying the entire annual financial income and expenditure variance required to be paid to the state budget based on the final settlement figures.

            The annual financial income and expenditure variance of the State Bank to be paid to the state budget shall be officially determined based on the audit results of the National Audit Office. If the amount paid exceeds the amount required to be paid according to the official audit conclusion, the excess amount will be deducted from the amount required to be paid in the following year. Conversely, if the amount paid is less than the amount required to be paid according to the official audit conclusion, the State Bank must pay the remaining variance within ten days from the date of the audit conclusion.

4. In cases where the State Bank incurs losses (income is insufficient to cover expenses) due to performing its functions in managing the state's monetary, credit, and banking affairs, the Ministry of Finance shall conduct inspections and report to the Prime Minister for handling.

IV. FINANCIAL PLANNING, FINANCIAL REPORTS AND PROVISIONS ON ACCOUNTING, FINAL SETTLEMENT OF FINANCIAL REPORTS, AUDITING AND FINANCIAL INSPECTION

1. The fiscal year of the State Bank begins on January 1 and ends on December 31 of each calendar year.

2. The financial plan:

a. The State Bank prepares the annual financial plan in accordance with the guidelines of the Ministry of Finance. The State Bank's financial plan includes the following components:

- Income and expenditure plan (accompanied by detailed explanations of revenue and expenditure items and specific expenditure standards expected for the planning year).

- Basic construction and fixed asset procurement plan (accompanied by detailed explanations of planned basic construction and fixed asset procurement and balancing of funding sources).

- Staffing, salary, and income plan.

b. The State Bank's annual financial income and expenditure plan is prepared and submitted to the Ministry of Finance for review and consolidation into the state budget estimate in accordance with the State Budget Law.

3. Accounting Entries

- The State Bank implements accounting and statistical systems in accordance with the provisions of the law.

- The State Bank is responsible for strictly adhering to all provisions in the accounting system applicable to the State Bank, including general legal provisions, accounting voucher regulations, accounting account system, accounting ledger system, financial reporting system...

4. Financial reports

a/ The State Bank completes the financial final settlement and fully complies with the regulations on preparing and submitting financial reports to the Ministry of Finance in accordance with the accounting and statistical laws and the specific provisions of this Circular.

b/ Financial reports sent to the Ministry of Finance include:

- Quarterly reports sent to the Ministry of Finance no later than twenty days after the end of the quarter, including:

+ Implementation report of the income and expenditure plan.

+ Detailed explanation of the implementation situation of the income and expenditure plan.

+ Report on the changes in the foreign exchange reserve fund, the national monetary policy implementation fund, and the risk reserve fund.

- Annual financial reports sent to the Ministry of Finance no later than forty-five days after the end of the fiscal year, including:

+ Accounting balance sheet and consolidated balance sheet.

+ Implementation of the annual income and expenditure plan.

+ Detailed explanation of the implementation situation of the annual income and expenditure plan and financial recommendations for handling.

+ Report on the changes in the foreign exchange reserve fund, the national monetary policy implementation fund, and the risk reserve fund.

The annual financial report of the State Bank must be audited and confirmed by the National Audit Office. The audit results shall be reported to the Prime Minister and notified to the Ministry of Finance.

5. Financial inspection:

The Ministry of Finance inspects the State Bank's finances, including:

- Regular or surprise financial inspections.

- Special topic inspections based on the requirements of financial management work.

In cases where violations of financial discipline are found to occur across multiple branches and subordinate units of the State Bank, and the financial report data is not sufficiently reliable, the Ministry of Finance shall report to the Prime Minister and request the National Audit Office to re-audit and verify the financial report data for the year.

Chapter III

IMPLEMENTATION

1.  This Circular takes effect fifteen days after its publication in the Official Gazette and applies from the 2006 fiscal year, replacing Circulars No. 111/1999/TT-BTC dated September 17, 1999; No. 29/2002/TT-BTC dated March 26, 2002; No. 117/2003/TT-BTC dated December 8, 2003; No. 37/2004/TT-BTC dated April 26, 2004; and No. 108/2004/TT-BTC dated November 16, 2004 of the Ministry of Finance guiding the implementation of the financial regime for the State Bank of Vietnam.

2. The State Bank is responsible for guiding subordinate units to implement the financial regime in accordance with Decree No. 07/2006/NĐ-CP dated January 10, 2006 of the Government on the financial regime of the State Bank and the guidance content of this Circular. The State Bank is responsible for sending internal guidance documents on this Circular to the Ministry of Finance for monitoring implementation.

3. In the course of implementation, if there are difficulties, please reflect them to the Ministry of Finance for research, consideration, and resolution./.