JOINT CIRCULAR No. 48/TT-LB ON RESPONSIBILITIES IN THE MANAGEMENT OF THE ISSUE OF BONDS FOR NATIONAL CONSTRUCTION

JOINT CIRCULAR

On responsibility in the work of managing the issuance of national construction bonds.

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Article 9 of Decree No. 145/HĐBT dated December 6, 1983 on the issuance of national construction bonds stipulates that the Council of Ministers assigns the Ministry of Finance and the State Bank the following tasks:

"... The Ministry of Finance is the unified management agency for the issuance of bonds, responsible for establishing plans for bond issuance and settlement, setting management regulations for bonds, and urging and inspecting the implementation thereof. Financial agencies at provincial and district levels assist People's Committees in providing guidance, urging, and inspecting the issuance and settlement of bonds."

The State Bank is responsible for printing, storing, and issuing bond certificates; organizing and directing the entire sector to perform tasks such as selling bond certificates, recording and preserving files and documents related to bonds, settling accounts with the central budget from bond revenues, and paying out bond certificates upon maturity...

Based on the provisions of the Council of Ministers and Circular No. 507/V13 dated July 15, 1987 of the Council of Ministers' Office, the Joint Ministry of Finance - State Bank provides detailed guidance on the responsibilities of each sector in the work of issuing national construction bonds as follows:

A/ FOR FINANCIAL AUTHORITIES

- Ministry of Finance:

1/ Study, develop, and submit to the State for promulgation unified systems and policies for mobilizing and issuing bonds nationwide in accordance with the country's economic and financial situation. At the same time, organize guidance and inspection to ensure proper and effective implementation.

2/ Develop a national plan for bond issuance (including plans for printing and distributing bond certificates, revenue and expenditure plans for bond issuance...).

The project for the bond revenue plan must be sent to the State Bank of Vietnam, the Central Committee for Mobilizing Bond Purchases, People's Committees of provinces, cities, and special administrative regions for comments and consolidation, and then submitted to the Council of Ministers for approval; and according to the delegation of the Council of Ministers, the Ministry of Finance announces bond revenue targets to localities for organization and implementation.

Together with the State Bank, calculate the material needs required for printing and distributing bond certificates to localities so that the State Bank can propose plans to relevant state agencies to ensure them.

Coordinate with the State Planning Commission, the State Bank, and related sectors to establish plans for goods reserves and financial plans to repay maturing bonds.

3/ Clearly define the responsibilities of financial authorities at all levels in managing the issuance of national construction bonds; guide provincial finance departments, cities, special administrative regions to closely cooperate with the State Bank, the same-level Bond Mobilization Committee to implement assigned bond revenue targets; develop distribution plans for bond certificates and financial revenue and expenditure plans for bonds for districts, counties, towns, and townships; guide district finance offices to coordinate with the State Bank and the same-level Bond Mobilization Committee to implement bond revenue targets and distribution plans for bond certificates down to wards and communes.

During the process of issuing bonds, the Ministry of Finance coordinates with the State Bank to organize monitoring and grasping the situation of bond certificates entering and leaving storage, sales, and revenue, and stock, to timely adjust between surplus and shortage areas, urge timely submission of bond revenue to the budget.

After each round of bond issuance, the Ministry of Finance coordinates with the State Bank and related sectors to compile and report to higher levels; guide provincial finance departments to coordinate with the State Bank at the same level to unify the organization and implementation of information reporting systems on bond revenue results, certificate entry and exit situations, and submission of funds to the budget.

- Provincial Finance Departments, City Finance Departments, Special Administrative Region Finance Departments:

1/ Coordinate with the State Bank and related sectors to calculate and submit to the People's Committee a bond issuance and revenue plan that closely matches the characteristics and actual conditions of the locality, and provide comments on the inspection book sent down by the Ministry of Finance. After receiving the official plan from the Council of Ministers, they must calculate and assign the issuance plan to the county and district levels; at the same time, advise the Party committee, People's Committee, and Bond Mobilization Committee on the plan and measures for implementation. Discuss with the local planning agency on using the bond revenue allocated to the local budget for investment in production projects according to the state plan and report to the Central Committee for Mobilizing Bond Purchases and the Ministry of Finance.

2/ Closely coordinate with the State Bank in organizing bond issuance at the local level.

Grasp the plan and quantity of various types of bond certificates distributed to the locality by the Central Bank and the Ministry of Finance in each batch and round to organize well the issuance work and balance bond certificates among districts and counties.

Urge banks and units selling bond certificates to promptly deposit proceeds into the budget, avoiding accumulation of funds at the point of sale and at banking agencies.

In each round of bond issuance, organize reconciliation and verification of the quantity of various types of bond certificates brought to the locality, the quantity sold and revenue collected, and the remaining stock after issuance, ensuring consistency between the State Bank, Finance Department, and related sectors, and between records and physical inventory. This is the basis for repaying debts to the people when due.

For bond certificates in stock found to be surplus or short during inspection compared to records, it is necessary to classify, verify causes and responsibilities, take prompt measures, and report to the Ministry of Finance and the Central Bank.

3/ On the basis of the local activity plan and the issuance of government bonds, in accordance with the regulations of the Ministry of Finance on expenditure rules and financial management decentralization system, build and submit to the People's Committee for approval the budget estimate for mobilization and issuance of government bonds at the local level; simultaneously organize timely distribution to create necessary financial conditions contributing to ensuring that the mobilization campaign achieves high results. At the end of each round and each year, promptly review and settle accounts for units and report to relevant state agencies.

B/ FOR THE STATE BANK

1/ Annually or during each issuance period of government bonds for national construction, the Central Bank provides comments to the Ministry of Finance on the printing plan and issuance of government bonds for national construction; Based on the bond issuance plan and the printing plan for various types of government bonds sent by the Ministry of Finance to the Central Bank, direct units within the sector to complete specific tasks as follows:

- Design and prepare printing plates for various types of government bonds.

- Develop plans to request special material quotas for serving the printing of government bonds; distribute and transport government bonds to localities.

- Develop plans and direct printing enterprises to print government bonds according to the specified types, ensuring quantity, quality, and deadlines; based on the plan discussed and agreed upon with the Ministry of Finance, organize the delivery of bonds to provinces, cities, and special administrative regions before the launch date.

- Develop financial expenditure plans and submit them to the Ministry of Finance as the basis for allocating funds according to items such as labor costs and bond samples, plate-making costs, paper costs for printing, printing costs, packaging paper costs, and operational expenses of the State Bank in issuing government bonds, which are set at 1.5% of the actual government bond revenue collected into the budget (including both central and local budgets).

After reaching agreement with the Ministry of Finance, the Central State Bank guides the expenditure rules for the issuance of government bonds within the banking sector.

2/ Organize and strictly direct the sale of government bond certificates, collection of money, and timely deposit into the budget; record books accurately, keep vouchers carefully, and settle accounts promptly with the Ministry of Finance and the Provincial Financial Departments regarding the issuance of government bonds and the revenue from each issuance period; about the costs incurred in the issuance of government bonds. After each issuance period, the bank needs to compile data, summarize the situation, and organize lessons learned to supplement the issuance business within the sector, report to the Council of Ministers, the Central Mobilization Committee for Government Bonds, and send copies to the Ministry of Finance.

3/ Accounting system and reporting information.

The State Bank organizes the implementation of a unified accounting system for the issuance of government bonds throughout the sector according to the government bond accounting system issued by the State Bank. The government bond accounting system is detailedly guided and regulated for each economic transaction such as receiving, storing, and distributing government bond certificates, selling government bond certificates and collecting money; redeeming government bond certificates at maturity; transferring ownership of government bond certificates; managing the reporting of lost government bond certificates; and coordinating with financial authorities to establish a timely information system on the results of government bond sales to different purchasing groups and types of government bonds issued to different population groups.

Based on the above regulations, the Ministry of Finance and the Central State Bank issue specific guidelines within their respective sectors. Any difficulties encountered during implementation should be reported by local financial and banking authorities to the Ministry of Finance and the State Bank of Vietnam for discussion and uniform guidance on solutions.