Decision No. 445/TTg permits the State Bank to issue Treasury bills with a term of less than one year, only sold to domestic commercial banks and credit institutions. The issuance amount, interest rate, and issuance time are decided by the Governor of the State Bank.
Scope of application
The State Bank, commercial banks, and credit institutions operating within the territory of Vietnam
Key points
- The State Bank is permitted to issue Treasury bills with a term of less than one year
- Treasury bills are only sold to domestic commercial banks and credit institutions
- Purchasing Treasury bills for certain entities during specific periods is mandatory
- The Governor of the State Bank decides on the issuance amount, interest rate, and issuance time
- Funds from the issuance of Treasury bills shall not be used under any form of credit
🌐 Social impact of this document
- To enhance the effectiveness of monetary policy management by the State Bank
- It may create financial pressure on commercial banks and credit institutions required to purchase Treasury bills
❓ Frequently asked questions
Which banks are permitted to buy Treasury bills?
Only commercial banks and credit institutions operating within the territory of Vietnam are permitted to buy Treasury bills.
What powers does the Governor of the State Bank have regarding Treasury bills?
The Governor of the State Bank decides on the issuance amount, interest rate, and issuance time for each issuance of Treasury bills.
How are funds from the issuance of Treasury bills used?
Funds from the issuance of Treasury bills shall not be used under any form of credit but are solely for repayment upon maturity of the Treasury bills.
Is purchasing Treasury bills mandatory for commercial banks and credit institutions?
Purchasing Treasury bills for certain entities during specific periods is mandatory according to the practical requirements of monetary policy management.
What is the maximum term of Treasury bills?
Treasury bills have a term of less than one year.
Full text
DECISION OF THE PRIME MINISTER
Regarding the issuance of central bank bills by the State Bank
PRIME MINISTER
Pursuant to the Government Organization Law dated September 30, 1992;
Pursuant to the Ordinance on the State Bank issued pursuant to Decree No. 37/LCT-HĐNN;
To enhance the effectiveness of monetary policy management by the State Bank;
At the proposal of the Governor of the State Bank,
DECISION:
Article 1.- The State Bank is permitted to issue State Bank bills.
Article 2.- State Bank bills have a term of less than one year and are only sold to banks and credit organizations operating within the territory of Vietnam as required by the practical management of monetary policy during each period.
Purchasing State Bank bills by certain entities during specific periods is mandatory.
Article 3.- The Governor of the State Bank shall promulgate regulations on the issuance of State Bank bills and determine the timing, amount, and interest rate for each issuance; funds from the issuance of State Bank bills shall not be used for any form of credit but only for repayment when the bills mature.
Article 4. This Decision takes effect from the date of signature. The Governor of the State Bank is responsible for implementing this Decision./.
DEPUTY PRIME MINISTER
DEPUTY PRIME MINISTER
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