Circular No. 68/1999/TT-BTC guides certain specific points in the management of state financial affairs concerning postal savings services of Vietnam Post and Telecommunications Corporation.

CIRCULAR

CIRCULAR NO. 68/1999/TT-BTC OF JUNE 7, 1999 GUIDING CERTAIN DISTINCTIVE FEATURES IN THE MANAGEMENT OF STATE FINANCIAL MATTERS FOR POST SAVINGS SERVICES OF THE VIETNAM POST AND TELECOMMUNICATIONS CORPORATION

Pursuant to Article 5 of Decision No. 215/1998/QĐ-TTg dated November 4, 1998 of the Prime Minister on the organization of mobilization, management, and utilization of postal savings funds, the Ministry of Finance guides certain distinctive features in the management of state financial matters for post savings services of the Vietnam Post and Telecommunications Corporation (P&T Corporation) as follows:

I. GENERAL PRINCIPLES

- The post savings service shall implement financial regulations according to the Financial Charter of the P&T Corporation in accordance with current state regulations on financial management for state-owned enterprises. However, certain distinctive features of post savings services as stipulated in Decision No. 215/1998/QĐ-TTg dated November 4, 1998 of the Prime Minister shall be implemented in accordance with this Circular.

- The Ministry of Finance shall perform its function of managing state financial matters related to post savings service activities.

II. SPECIFIC PROVISIONS

1. On Mobilizing and Utilizing Postal Savings Funds:

1.1- The P&T Corporation is permitted to mobilize all idle funds from various strata of the population under various forms such as term deposits, non-term deposits, installment deposits, etc. The interest rate for savings mobilization shall be determined by the P&T Corporation based on the principle of self-sufficiency to cover costs, ensure the preservation and development of capital sources, and comply with the interest rate policy prescribed by the State Bank.

1.2- The mobilized postal savings capital shall be utilized in the following order:

- The P&T Corporation may retain up to 20% of the total balance of residents' savings deposits at any time to ensure regular payment to depositors when their terms expire or they have urgent withdrawal needs.

- Transfer to the National Investment Support Fund for use in lending to government projects in accordance with the Law on Encouraging Domestic Investment within the agreed timeframe, quantity, and term as stipulated in the agreement signed between the National Investment Support Fund and the P&T Corporation.

- In cases where the remaining capital after transferring to the National Investment Support Fund meets the plan and ensures regular payments, it may be used for additional loans to the National Investment Support Fund if needed, or for purchasing Treasury bonds and construction bonds.

2. Regarding the management of revenues and expenditures of post savings services:

2.1- The P&T Corporation is responsible for fully and promptly accounting for revenues generated from post savings service operations. These include the following revenues:

- Interest income from loans to the National Investment Support Fund;

- Interest income from deposits;

- Interest income from investments in Treasury bonds and construction bonds.

2.2- Post savings services may be allocated for the following purposes:

- Payment of interest on savings deposits to residents in accordance with the principle of timely and accurate payment.

- Transfer fees.

- Costs to offset business risks including: Risks in settlement and liquidity risks due to objective reasons approved by the Board of Directors of the P&T Corporation.

- Management expenses for post savings service operations such as salaries, training and professional instruction costs, reception and ceremonial expenses, printing and stationery costs, etc., in accordance with state regulations.

3. Regarding Value Added Tax:

The P&T Corporation is exempt from paying Value Added Tax on revenues from lending to the National Investment Support Fund and investment in purchasing Treasury bonds and construction bonds, as well as interest income from post savings services.

4. Regarding Accounting System and Financial Reporting of Post Savings Services:

The P&T Corporation is responsible for organizing accounting work and preparing final financial reports for post savings service operations in accordance with the Accounting Regulations for Post Savings Service Operations issued by the Ministry of Finance. Final financial reports must be submitted to relevant agencies as required by current regulations, and simultaneously sent to the Ministry of Finance (Department of Banking and Financial Organization Finance).

5. Regarding Planning: Annually, the P&T Corporation is responsible for developing financial plans for post savings service operations and submitting them to relevant agencies as required by current regulations, and simultaneously sending them to the Ministry of Finance (Department of Banking and Financial Organization Finance) in the fourth quarter of the previous year, including:

+ Capital source and usage plan.

+ Plan for the value and term of postal savings capital transferred to the National Investment Support Fund.

+ Revenue and expenditure plan for interest payments, management costs, and risk offsetting costs.

III. IMPLEMENTATION

1. The P&T Corporation is responsible under the law for the use of capital, ensuring payments to residents, and subject to inspection by state financial authorities in accordance with the law and this Circular.

2. This Circular takes effect fifteen days from the date of issuance.

The Chairman of the Board of Directors of the P&T Corporation, the General Director of the P&T Corporation, and related units are responsible for implementing this Circular. Any difficulties encountered during implementation should be reported to the Ministry of Finance for consideration, supplementation, and timely amendment.