Circular No. 40/1999/TT-BTC guides the implementation of Decision No. 215/1998/QD-TTg dated November 1, 1998 of the Prime Minister on organizing the mobilization, management, and utilization of postal savings deposits.

CIRCULAR

Guidelines for Implementing Decision No. 215/1998/QĐ-TTg dated November 4, 1998

of the Prime Ministerconcerning the organization of mobilization,

management and utilization of postal savings funds

 _________________________

Pursuant to Decision No. 215/1998/QĐ-TTg dated November 4, 1998 of the Prime Minister on organizing the mobilization, management and utilization of postal savings funds, the opinions of the Vietnam Post and Telecommunications Corporation, and the Ministry of Finance's guidance on the mechanism of transferring, receiving, using and repaying postal savings funds between the Vietnam Post and Telecommunications Corporation and the National Investment Support Fund are as follows:

I. GENERAL PROVISIONS

1. Annually, the source of funds mobilized by the Vietnam Post and Telecommunications Corporation through postal savings services according to Decision No. 215/1998/QĐ-TTg dated November 4, 1998 of the Prime Minister shall be transferred to the National Investment Support Fund at the level of capital allocated by the Prime Minister for lending to investment projects in accordance with the Government's orientation and the Charter of the National Investment Support Fund.

2. The National Investment Support Fund shall be responsible for receiving, using properly and returning the postal savings funds to the Vietnam Post and Telecommunications Corporation fully and on time.

3. The interest rate that the National Investment Support Fund pays to the Vietnam Post and Telecommunications Corporation shall be determined by the Minister of Finance based on the interest rate of Treasury Bonds of the same type and period. The difference between the borrowing interest rate of the Vietnam Post and Telecommunications Corporation and the lending interest rate of the National Investment Support Fund shall be covered by the State budget.

4. The National Investment Support Fund shall enjoy service fees for lending according to the Decision of the Prime Minister in Notification No. 6776/KTTH dated December 31, 1996 of the Government Office.

II. SPECIFIC PROVISIONS

5. In the third quarter of each year, the National Investment Support Fund shall be responsible for coordinating with the Department of State Budget, the Department of Banking Finance and financial organizations to prepare plans agreed upon by the Ministry of Finance with the Ministry of Planning and Investment and the Vietnam Post and Telecommunications Corporation to submit to the Prime Minister for allocating plans and sources of funds for the Vietnam Post and Telecommunications Corporation to mobilize the following year (within a term of 1, 2, 3, or 5 years) and the State budget estimate to cover the interest rate difference for the National Investment Support Fund (for the portion of funds transferred by the Vietnam Post and Telecommunications Corporation) in the coming year.

6. The Vietnam Post and Telecommunications Corporation shall be responsible for mobilizing sufficient funds for preferential investment credit according to the annual plan decided by the Prime Minister and transferring the funds according to the correct structure and on time to the National Investment Support Fund.

7. The National Investment Support Fund shall be responsible for receiving postal savings funds to lend to investment projects in accordance with the Government's orientation and the Charter of the National Investment Support Fund. The National Investment Support Fund shall be responsible for lending funds for their intended purpose, recovering loans, and returning the principal to the Vietnam Post and Telecommunications Corporation. In cases of unforeseen risks, it must report to the Minister of Finance for handling solutions to be submitted to the Prime Minister for consideration and decision.

8. The interest rate that the Vietnam Post and Telecommunications Corporation lends to the National Investment Support Fund shall be determined by the Minister of Finance based on the interest rate of Treasury Bonds of the same type and period. This interest rate shall be fixed throughout the loan period until the National Investment Support Fund repays all its debt.

9. The repayment of principal and interest by the National Investment Support Fund to the Vietnam Post and Telecommunications Corporation shall be carried out as follows:

Principal: Repaid in full when due. In case the National Investment Support Fund cannot balance the source of repayment at maturity, the National Investment Support Fund must report to the Minister of Finance and notify the Vietnam Post and Telecommunications Corporation one month in advance to proactively mobilize funds to repay the debt for the Fund.

Interest: Loan interest shall be calculated from the date the loan amount is transferred into the National Investment Support Fund's deposit account. Interest shall be calculated using the sum-of-the-years'-digits method, with a year consisting of 365 days.

10. The National Investment Support Fund shall pay loan interest to the Vietnam Post and Telecommunications Corporation quarterly on the last day of each quarter for all loans.

The difference between the interest rate charged by the National Investment Support Fund for lending projects directed by the Government and the interest rate paid by the National Investment Support Fund to the Vietnam Post and Telecommunications Corporation, as well as the service fee for lending from postal savings funds, shall be covered by the State budget for the National Investment Support Fund according to the current regulations.

11. Quarterly, 15 days before the interest payment deadline, based on the level of state budget allocation to cover the interest rate difference for the National Investment Support Fund for the quarter, the National Investment Support Fund shall be responsible for coordinating with the Department of Banking Finance and the Department of State Budget to estimate the interest rate difference to be covered so that the Department of State Budget can transfer it to the Fund to pay the Vietnam Post and Telecommunications Corporation. For the next quarter, based on the actual loan amount and outstanding balance of the previous quarter, the National Investment Support Fund shall recalculate the amount to be covered to adjust promptly. If the amount already allocated is insufficient, it will be supplemented to make up the difference, if the amount already allocated exceeds the actual amount required, the excess amount will be deducted from the estimated amount for the next quarter.

At the end of the year, the National Investment Support Fund shall re-evaluate the total actual interest rate difference to be covered. If the amount already allocated is insufficient, it will be supplemented within the remaining state budget allocation for covering the interest rate difference for the year. If the amount not yet allocated exceeds the remaining state budget allocation for covering the interest rate difference for the year, it will be supplemented in the following year according to the prescribed regulations. If the amount already allocated exceeds the actual interest rate difference to be covered, the National Investment Support Fund shall return the excess amount to the state budget or deduct it from the amount to be covered for the National Investment Support Fund in the following year.

12. The transfer, receipt, use, and repayment of postal savings funds between Vietnam Post and Telecommunications Corporation and the National Investment Support Fund annually shall be carried out through a capital transfer agreement between Vietnam Post and Telecommunications Corporation and the National Investment Support Fund (Model contract according to Appendix No. 1 attached).

Each time capital is transferred and received, it shall be conducted using a debt issuance certificate issued by Vietnam Post and Telecommunications Corporation (Model debt issuance certificate according to Appendix No. 2 attached).

III. IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days from the date of signature.

The General Director of Vietnam Post and Telecommunications Corporation, the Head of the State Budget Department, the Head of the Banking Finance Department, and the General Director of the National Investment Support Fund are responsible for guiding and implementing this Circular./.

SOCIALIST REPUBLIC OF VIETNAM

INDEPENDENCE - FREEDOM - HAPPINESS

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Basic Contract on Capital Transfer between Vietnam Post and Telecommunications Corporation

and the National Investment Support Fund

No.: /HĐ

 BASED ON Decision No. 215/1998/QĐ-TTg dated November 4, 1998 of the Prime Minister on organizing the mobilization, management, and utilization of postal savings funds;

Pursuant to Decision No. ..........dated.......... the..........1999 of the Prime Minister on implementing the credit investment plan for 1999.

Today, the... day of the... month of the... year, we include:

1. Representative of Vietnam Post and Telecommunications Corporation: - Mr.:...

Mr.: Truong Cong Phu

In 1999, Vietnam Post and Telecommunications Corporation will transfer to the National Investment Support Fund a loan amount of... with the following structure:

Article 1: Term 1 year:

Term 2 years:

Term 3 years:

Term 5 years:

Details of capital transfer are specified in Appendix No. 1 attached to this basic contract.

Each time capital is transferred, the National Investment Support Fund and Vietnam Post and Telecommunications Corporation will sign on the debt issuance certificate (Model No. 1 attached to this contract), specifying the amount of the loan, term, interest rate applied, and payment method but not contrary to this basic contract.

Article 2: The interest rate for the loan provided by Vietnam Post and Telecommunications Corporation to the National Investment Support Fund shall be determined by the Minister of Finance. The interest rate for each loan will remain fixed throughout the period from the date Vietnam Post and Telecommunications Corporation transfers money to the National Investment Support Fund until the National Investment Support Fund repays the entire loan to Vietnam Post and Telecommunications Corporation.

Article 3: Method of transferring money, repaying principal and interest:

Article 4: Upon the due date for transferring money, Vietnam Post and Telecommunications Corporation will process the transfer of funds into the deposit account of the National Investment Support Fund opened at the Commercial Bank as designated by the National Investment Support Fund and issue a debt issuance certificate for the National Investment Support Fund to acknowledge and sign;

Method of repaying principal and interest:

The National Investment Support Fund will repay the principal according to the deadline stipulated in the debt issuance certificate. If the National Investment Support Fund cannot balance its sources to repay at maturity, the Fund must notify Vietnam Post and Telecommunications Corporation one month in advance so that the Corporation can mobilize funds to repay the old debt for the Fund;

As for interest payments: The National Investment Support Fund will pay accrued interest to Vietnam Post and Telecommunications Corporation on the last day of each quarter for all loans. Interest is calculated using the sum-of-the-years'-digits method, with a year consisting of 365 days.

Responsibilities of Vietnam Post and Telecommunications Corporation:

Article 5: Vietnam Post and Telecommunications Corporation is responsible for transferring the full and correct amount of capital according to the agreed schedule between the National Investment Support Fund and Vietnam Post and Telecommunications Corporation as stipulated in this contract;

Responsibilities of the National Investment Support Fund:

Article 6: The National Investment Support Fund is responsible for organizing the receipt of capital transferred by Vietnam Post and Telecommunications Corporation, and repaying the principal and interest according to the provisions set forth in Article 4 of this contract.

This basic contract is signed between the leadership of the National Investment Support Fund and the leadership of Vietnam Post and Telecommunications Corporation and is made in... original copies: the National Investment Support Fund retains one copy, and Vietnam Post and Telecommunications Corporation retains one copy.

Article 7: This contract becomes effective from the... day of the... month of the... year.

Representative of Vietnam Post and Telecommunications Corporation

attached hereto.

(Attached to Basic Contract No.: /HĐ dated the... month of the... year)

Date of transfer

Unit: Million dong