Circular No. 74/2016/TT-BTC on the management and use of funds collected from loan refund fees and guarantee fee allocations at the Ministry of Finance for the period 2016-2020

Article 1. Scope of Regulation

3. Determination of the budget for autonomous operation from the source of funds prescribed in Clause 2, Article 3 of this Circular shall be carried out in accordance with Clause 2, Article 3 of the Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014 of the Ministry of Finance and the Ministry of Home Affairs on the self-management and self-responsibility system for the use of administrative management funds of state agencies (hereinafter referred to as Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014).

2. The loan rescheduling fee is the amount that the borrower must pay according to Clause 1, Article 10 of Decree No. 78/2010/NĐ-CP dated July 14, 2010 of the Government on loan rescheduling from foreign government loans.

3. The guarantee fee is the portion that the Ministry of Finance extracts according to Clause 3, Article 12 of Decree No. 15/2011/NĐ-CP dated February 16, 2011 of the Government on the issuance and management of government guarantees.

Article 2. Applicability

1. The Department of Debt Management and External Finance.

2. Agencies and units related to the management and use of the proceeds from the loan rescheduling fees and the retained guarantee fees.

3. Units directly involved in the activities specified in Point d, Clause 1, Article 4 of Decision No. 05/2016/QĐ-TTg dated February 5, 2016.

Article 3. Allocation of funds collected from loan rescheduling fees and guarantee fees.

The proceeds from loan rescheduling fees and guarantee fees shall be allocated as follows:

1. Allocate 40% of the proceeds from loan rescheduling fees and guarantee fees, as stipulated in Clauses 2 and 3, Article 1 of this Circular, to the Debt Repayment Reserve Fund.

2. The remaining 60% shall be used to supplement the operational budget of the Department of Debt Management and External Finance (outside the regular budget provided by the state budget to ensure ongoing operations under current regulations) for the expenditure items specified in Article 4 of Decision No. 05/2016/QĐ-TTg dated February 5, 2016.

3. The determination of the budget for self-management for the source of funding specified in Clause 2 of Article 3 of this Circular shall be carried out according to Clause 2 of Article 3 of the Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014 of the Ministry of Finance and the Ministry of Home Affairs on the self-management and self-responsibility system for administrative management expenses for state agencies (hereinafter referred to as Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014).

Article 4. Contents for which borrowing fees and retained guarantee fees are charged

1. Expenses to enhance the effectiveness of public debt management work, including:

a) Building, maintaining, and upgrading databases on public debt and software for managing public debt and non-repayable aid;

b) Propagating and disseminating policies and laws on public debt management and non-repayable aid; establishing and maintaining the operation of the Public Debt Management Information Website; publishing the Public Debt Bulletin (including building and maintaining the issuance of the Public Debt Bulletin) and other publications related to public debt management work;

c) Equipping physical infrastructure and equipment for public debt management and non-repayable aid work at the Department of Debt Management and Foreign Financial Affairs and the Ministry of Finance;

d) Business activities in public debt management, including:

- Expenses for supporting business activities in public debt management and non-repayable aid, including: Hiring legal consultants; hiring domestic and foreign organizations to provide consulting services and serve public debt management; expenses for constructing and implementing public debt management operations.

- Expenses for legal advisory and support services for public debt management work, including: Hiring experts and organizations, both domestic and foreign, to provide legal advice on the contents of loan contracts, bond issuance agreements, and guarantee letters.

- Expenses to support the assessment and provision of legal opinions on large-scale foreign loans or loan contracts with government guarantees that have wide-ranging impacts and involve multiple levels and agencies, upon request of the agency responsible for issuing legal opinions as decided by the Minister of Finance: Conference and seminar expenses, hiring expert expenses, translation and interpretation expenses for foreign documents.

- Expenses to support the development of regulatory legal documents on public debt management and non-repayable aid.

- Expenses for inspecting and supervising programs, projects, agencies, and units using borrowed funds and non-repayable aid according to plans or spot checks based on management and supervision requirements.

- Expenses for organizing domestic and international conferences and seminars on public debt management and non-repayable aid.

- Expenses for organizing research, survey, and learning tours domestically and internationally regarding public debt management and non-repayable aid work.

- Expenses for short-term training, workshops, and capacity enhancement in professional skills, foreign languages, information technology, and other knowledge and skills relevant to public debt management and non-repayable aid work (including training and enhancement within the country and sending officials to participate in overseas training courses) for staff directly involved in public debt management and non-repayable aid work.

- Expenses for scientific research activities, implementing policy and professional topics and projects on public debt management and non-repayable aid (including purchasing books, publications, and other materials serving scientific research activities and implementing topics and projects).

- Expenses for other public debt management operations as prescribed by laws on public debt management.

e) Supplementing the maximum monthly salary not exceeding one time the state-prescribed salary level for officials and civil servants (grade, rank, and various allowances, excluding night shift and overtime pay). This expenditure will cease when the new salary system is implemented.

2. Expenses for rewarding collectives and individuals outside the Department of Debt Management and Foreign Financial Affairs who have made direct contributions to public debt management work: Up to one month's actual salary of the Department of Debt Management and Foreign Financial Affairs in a year, including: Grade, rank, various allowances (excluding night shift and overtime pay), supplementary salary as stipulated in Point d, Clause 1, Article 4 of Decision No. 05/2016/QĐ-TTg dated February 5, 2016, and additional income from savings funds actually paid by the Department of Debt Management and Foreign Financial Affairs on average per month in a year.

Article 5. Standards, norms, and expenditure regimes

The expenditure regime to enhance the effectiveness of public debt management from loan fee revenues and retained guarantee fees shall be implemented according to the current financial expenditure regime of the state. This Circular provides additional guidance on certain expenditure regimes from loan fee revenues and retained guarantee fees as follows:

1. Expenditure for building, maintaining, and upgrading public debt database infrastructure and software serving public debt management and non-repayable aid management; expenditure for establishing and maintaining the operation of the Public Debt Management Information Website: Implemented according to the provisions of Circular No. 194/2012/TT-BTC dated November 15, 2012, issued by the Ministry of Finance guiding the level of expenditure for creating electronic information to maintain the regular operation of agencies and units using state budget funds, and Joint Circular No. 19/2012/TTLT-BTC-BKH&ĐT-BTTTT dated February 15, 2012, issued by the Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Information and Communications guiding the management and use of funds for implementing the National Program on the Application of Information Technology in State Agency Operations.

2. Expenditure for publishing the Public Debt Bulletin and related publications concerning public debt management: Content and expenditure levels according to the current regulations on payment of royalties and applying standards, norms, and unit prices of similar industries.

3. Expenditure for equipping physical facilities and equipment serving public debt management and non-repayable aid management: Implemented according to the current standards and norms prescribed by the state and the Ministry of Finance.

4. Expenditure for organizing inspection and supervision teams for programs, projects, and agencies and units using borrowed funds and non-repayable aid; expenditure for domestic surveys and experience learning: Implemented according to travel expense regulations stipulated in Circular No. 97/2010/TT-BTC dated July 6, 2010, issued by the Ministry of Finance prescribing travel expense regulations and expenditure regimes for organizing conferences for state agencies and public service units.

5. Short-term training, seminar, and professional capacity enhancement expenditure for civil servants of the Department of Debt Management and Foreign Financial Affairs and the Ministry of Finance: Content and expenditure levels implemented according to the provisions of Circular No. 139/2010/TT-BTC dated September 21, 2010, issued by the Ministry of Finance prescribing the preparation of budgets, management, and use of state budget funds for training and cadre development.

6. Expenditure for organizing survey and experience learning delegations abroad for members of research, survey, and experience learning delegations on public debt management and non-repayable aid: Implemented according to the provisions of Circular No. 102/2012/TT-BTC dated June 21, 2012, issued by the Ministry of Finance prescribing travel expense regulations for state officials and civil servants going on short-term missions abroad funded by the state budget.

7. For special expenditure items in public debt management and non-repayable aid management not specified in legal documents of competent authorities: The Department of Debt Management and Foreign Financial Affairs may apply decisions on corresponding expenditure levels for similar tasks already prescribed in legal normative documents, but not exceeding the prescribed expenditure levels and must be stipulated in internal expenditure regulations of the agency or decided in writing by the Director of the Department of Debt Management and Foreign Financial Affairs in cases not covered by internal expenditure regulations, with the Director bearing responsibility for their decision.

Article 6. Utilization of saved funds

1. Determination of saved funds:

After completing the tasks for expenditures as stipulated in Clause 1 and Clause 2 of Article 4 of this Circular, the difference between the actual expenditure that is lower than the budgeted amount allocated to implement the self-management regime for the contents of expenditure specified in Article 4 of this Circular shall be determined as saved funds, specifically as follows:

a) Expenditure on activities to enhance the effectiveness of public debt management under the self-management regime as prescribed in Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014, if all assigned tasks and volumes have been fully completed according to the approved budget, the unused portion of the funds shall be considered as saved funds;

b) Activities to enhance the effectiveness of public debt management under the self-management regime as prescribed in Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014, if the assigned tasks are not carried out or not fully completed in terms of quantity and volume or not ensured in quality, such activities shall not be considered as saved funds and must be transferred to the following year for continued implementation (including cases where work is still ongoing) and allocated to the self-management budget of the following year; for work that has been partially implemented, the portion of funds already expended shall be settled according to regulations.

2. Saved funds (if any) may be utilized for the following purposes:

a) Supplementary income for civil servants and employees.

The total supplementary income for civil servants and employees from the saved funds used for loan repayment fees and the portion of guarantee fee extraction mentioned above and from the saved funds obtained when implementing the financial self-management regime as prescribed in Decree No. 130/2005/NĐ-CP dated October 17, 2005 and Decree No. 117/2013/NĐ-CP dated October 7, 2013 shall not exceed 1.0 times the state-defined salary fund for rank and position.

The determination and payment of additional income shall be carried out in accordance with the provisions of Clause 8, Article 3 of Joint Circular No. 71/2014/TTLT-BTC-BNV dated May 30, 2014.

The Director of the Department of Debt Management and External Finance shall decide on the distribution of supplementary income for civil servants and employees based on principles of fairness and reasonableness, linking salaries to performance and quality of work completion by each civil servant and employee, and such decisions must be included in the internal expenditure regulation.

b) Awards and welfare expenses:

Total expenses for collective awards and welfare shall not exceed three months' actual salary including: grade and step salary, allowances, wages, and additional wage supplements as stipulated in Point d, Clause 1 of Article 4 of Decision No. 05/2016/QĐ-TTg dated February 5, 2016 and additional income from saved funds actually paid by the Department of Debt Management and External Finance on average annually.

Regular or extraordinary awards for collectives and individuals based on work results and contributions beyond the current award system prescribed by the Law on Encouragement and Reward.

Expenses for collective welfare activities: Supporting group activities; supporting holidays, festivals, and commemorative days (Vietnamese Women's Day, Martyrs' Day, Army Day, other commemorative days); regular and extraordinary hardship allowances; lunch subsidies, uniform expenses for civil servants and employees of the agency; condolences for funerals and weddings, visiting the sick; retirement and disability allowances; support for civil servants and employees within the establishment when implementing staff reduction; expenses for regular health check-ups and medical supplies within the agency; expenses for building and repairing welfare facilities.

c) Establishing a reserve fund to stabilize income for civil servants and employees: The level of contribution shall ensure that the balance of the Fund does not exceed three months' state-defined salary (grade and step salary and allowances). The reserve fund for stabilizing income shall be used in cases where saved funds are insufficient to ensure stable income for civil servants and employees of the Department of Debt Management and External Finance.

d) Any remaining saved funds (if any) after being used for the purposes specified in Clause 2 of this Article shall be transferred to the following year for use for the expenditure contents specified in Article 4 of this Circular.

đ) The Director of the Department of Debt Management and External Finance shall decide on the utilization of the aforementioned saved funds in accordance with the internal expenditure regulation of the agency.

Article 7. Establishment, Implementation, and Settlement of Budget Estimates

The establishment, implementation, and settlement of budget estimates for the fees for loan refinancing and guarantee fees to be retained for expenditure shall be carried out in accordance with the current provisions of the State Budget Law, the Accounting Law, and other guiding documents; this Circular supplements certain contents related to the establishment, implementation, and settlement of budget estimates as follows:

1. Establishment of budget projections:

Annually, at the time of preparing the state budget estimate, the Department of Debt Management and External Finance bases on the actual situation of the current year, revenue potential, and expenditure needs of the planned year to prepare the budget estimate for revenue and expenditure from loan refinancing fees and the portion of guarantee fees retained, which will be consolidated into the annual revenue and expenditure budget estimate of the Department and submitted to the Ministry of Finance (sectoral management) for review and overall balance according to the principle that the content of expenditures guaranteed from the state budget and the content of expenditures guaranteed from funds derived from loan refinancing fees and the portion of guarantee fees should not overlap, and then incorporated into the annual state budget estimate in accordance with the provisions of the State Budget Law.

2. Allocation and Assignment of Budget Estimates: Based on the annual state budget revenue and expenditure estimates

3. Management and Utilization of Funds: The management and utilization of funds derived from loan refinancing fees and the portion of guarantee fees must comply with the objectives and requirements stipulated in Decision No. 05/2016/QĐ-TTg dated February 5, 2016.

4. Execution of Revenue and Expenditure Budget Estimates:

a) The Department of Debt Management and External Finance, based on loan refinancing contracts and guarantee commitments, organizes the collection of loan refinancing fees and the portion of guarantee fees in accordance with regulations and deposits them into the Accumulation Fund for Debt Repayment.

b) On a monthly basis, based on the actual collected loan refinancing fees and the portion of guarantee fees, the Department of Debt Management and External Finance determines the amount allocated to the Ministry of Finance as prescribed in Article 3 of this Circular, including determining 40% to be retained in the Accumulation Fund for Debt Repayment and 60% to be utilized in accordance with Article 3 of Decision No. 05/2016/QĐ-TTg dated February 5, 2016 and the guidance provided in this Circular.

c) The Department of Debt Management and External Finance is authorized to open a deposit account at the State Treasury to receive and utilize the 60% of loan refinancing fees and the portion of guarantee fees retained by the Ministry of Finance mentioned above. The State Treasury shall monitor and control expenditures for the activities of the Department from this account in accordance with current regulations.

d) Adjustment of Revenue and Expenditure Budget Estimates Arising During the Year:

In cases where revenue does not meet the forecasted amount during the year, the Department of Debt Management and External Finance shall proactively adjust the expenditure tasks accordingly.

For urgent and unforeseen tasks arising during the year, the Department of Debt Management and External Finance may proactively use the assigned budget (including the state budget allocation and the budget from loan refinancing fees and the portion of guarantee fees retained) to implement these tasks. If the emerging task is significant and cannot be accommodated within the assigned budget, the Department of Debt Management and External Finance shall report to the Ministry of Finance (sectoral management) to report to the competent authority for consideration and supplementary budget expenditure according to the State Budget Law and its guiding documents.

đ) After the end of the fiscal year, the Department of Debt Management and External Finance is responsible for reconciling the data on loan refinancing fees and the portion of guarantee fees with the lending institutions and project owners to determine the amount allocated to the Ministry of Finance and the amount utilized in accordance with the regulations.

e) Any remaining funds after using them for the specified expenditure items under this Circular shall be transferred to the next year for continued use.

5. Payment and Settlement:

The payment and settlement of loan refinancing fees and the portion of guarantee fees retained by the Ministry of Finance shall be carried out in accordance with current regulations.

Regarding the expenditure for supporting the assessment and legal opinion issuance activities as stipulated in point d, Clause 1, Article 4 of this Circular, it shall be implemented as follows: The leading agency issuing legal opinions signs a contract to perform the task with the Department of Debt Management and External Finance and receives funds from the Department of Debt Management and External Finance. The accounting vouchers retained at the accounting unit of the Department of Debt Management and External Finance serve as the basis for settling accounts with the state budget: Contract, contract termination, confirmation by the Department of Debt Management and External Finance regarding the product meeting the requirements; specific expenditure vouchers will be retained at the direct expenditure accounting unit (held by the leading agencies issuing legal opinions).

6. For the funds derived from loan refinancing fees and the portion of guarantee fees (after being transferred into the Accumulation Fund for Debt Repayment as prescribed) that have not been fully utilized (including the remaining balance of the income stabilization reserve fund) during the period of managing and utilizing fees under Decision No. 46/2012/QĐ-TTg dated October 29, 2012 of the Prime Minister, they shall continue to be used for the expenditure items specified in Decision No. 05/2016/QĐ-TTg dated February 5, 2016 and the provisions of this Circular.

1. This Circular takes effect from July 15, 2016 and replaces Circular No. 29/2013/TT-BTC dated March 15, 2013 of the Ministry of Finance on the management and utilization of funds derived from loan refinancing fees and guarantee fees retained at the Ministry of Finance for the period 2012-2015. The provisions of this Circular apply to the fiscal years from 2016 to 2020.

2. When regulations on expenditure systems and standards referred to for application in this Circular are amended, supplemented, or replaced by new documents, they shall be applied according to those amended, supplemented, or replacing documents.

3. Annually, the Director of the Department of Debt Management and External Finance shall organize an evaluation of the management and utilization of loan refinancing fees and the portion of guarantee fees at the Ministry of Finance and report to the Minister of Finance; in the third quarter of 2020, the Ministry of Finance shall organize a summary and evaluation of the results of the management and utilization of fees at the Department of Debt Management and External Finance, and on this basis coordinate with relevant agencies to submit

4. The public service units under the Department of Debt Management and External Finance operate under the autonomous mechanism for public service units as prescribed in the Government Decrees and guiding documents of competent state agencies. During the implementation process, if there are difficulties or obstacles, they are requested to reflect these issues to the Ministry of Finance for study and resolution.

During the implementation process, if there are difficulties or obstacles, they are requested to reflect these issues to the Ministry of Finance for study and resolution./.