This Circular amends and supplements regulations on accounting for the issuance, swap, and repurchase of domestic debt instruments into the state budget. Particularly, it adjusts the method of handling price differences between the selling price of government bonds, treasury bills, and national construction bonds and their face value.
Scope of application
State financial agencies related to the accounting for the issuance, swap, and repurchase of domestic debt instruments into the state budget.
Key points
- Loans through the issuance of government bonds, treasury bills, and national construction bonds are accounted for at face value (Article 1).
- The difference between the selling price of government bonds and their face value and the difference between the repurchase price of government bonds and their face value are recorded on separate accounts, adjusted at year-end to the budget's interest payment (Article 1).
- In the case of bond swaps, the face value difference is not recorded in budget revenue or expenditure; a positive difference reduces the loan balance, while a negative difference increases the budget's loan balance (Article 1).
- This Circular takes effect from November 15, 2021.
- Relevant agencies must report difficulties and obstacles encountered during implementation to the Ministry of Finance for specific guidance (Article 2).
🌐 Social impact of this document
- To enhance management and transparency of public debt in the state budget.
- It may create difficulties in accounting for financial agencies if they do not fully understand the new regulations.
❓ Frequently asked questions
When does this Circular take effect?
This Circular takes effect from November 15, 2021.
When issuing government bonds and treasury bills, what value should be accounted for?
They should be accounted for at face value (Article 1).
How is the difference between the selling price of government bonds and their face value handled?
The difference is recorded on a separate account, adjusted at year-end to the budget's interest payment (Article 1).
Should the face value difference in bond swaps be recorded in budget revenue or expenditure?
It is not recorded in budget revenue or expenditure; a positive difference reduces the loan balance, while a negative difference increases the budget's loan balance (Article 1).
What should be done if there are difficulties encountered during the implementation of this Circular?
Relevant agencies need to promptly report to the Ministry of Finance for specific guidance (Article 2).
Full text
|
MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness |
| Number: 79/2021/TT-BTC | Hanoi, September 21, 2021 |
CIRCULAR
Amending and supplementing Clause 1, Article 2 of Circular No. 81/2020/TT-BTC dated September 15, 2020 amending and supplementing some articles of Circular No. 110/2018/TT-BTC dated November 15, 2018 of the Ministry of Finance guiding the repurchase and exchange of government debt instruments and government-guaranteed bonds and local government bonds in the domestic market and Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law.
15/9/2020 amending and supplementing some articles of Circular No. 110/2018/TT-BTC dated November 15, 2018 of the Ministry of Finance guiding the repurchase and exchange of government debt instruments and government-guaranteed bonds and local government bonds in the domestic market and Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law.
guiding the repurchase and exchange of government debt instruments, government-guaranteed bonds
and local government bonds in the domestic market and Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law.
and local government bonds in the domestic market and Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law.
of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law.
of the Ministry of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law.
number of the Government detailing the implementation of certain provisions of the State Budget Law.
of the State Budget Law.
Pursuant to the State Budget Law dated June 25, 2015;
Pursuant to the Public Debt Management Law dated November 23, 2017;
Pursuant to Decree No. 95/2018/NĐ-CP of the Government dated June 30, 2018 on the issuance, registration, custody, listing, and trading of government debt instruments on the securities market;
Pursuant to Decree No. 93/2018/NĐ-CP of the Government dated June 30, 2018 on the management of local government debts;
Pursuant to Decree No. 94/2018/NĐ-CP of the Government dated June 30, 2018 on public debt management operations;
Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016, issued by the Government, detailing the implementation of certain provisions of the State Budget Law;
Pursuant to Decree No. 87/2017/NĐ-CP of the Government dated July 26, 2017 on the functions, tasks, powers, and organizational structure of the Ministry of Finance;
At the proposal of the Director of the State Budget Department,
The Minister of Finance promulgates this Circular amending and supplementing Clause 1, Article 2 of Circular No. 81/2020/TT-BTC dated September 15, 2020 amending and supplementing some articles of Circular No. 110/2018/TT-BTC dated November 15, 2018 of the Minister of Finance guiding the repurchase and exchange of government debt instruments, government-guaranteed bonds and local government bonds in the domestic market and Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Minister of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law.
Article 1. Clause 1, Article 2 of Circular No. 81/2020/TT-BTC dated September 15, 2020 amending and supplementing some articles of Circular No. 110/2018/TT-BTC dated November 15, 2018 of the Minister of Finance guiding the repurchase and exchange of government debt instruments, government-guaranteed bonds and local government bonds in the domestic market and Circular No. 342/2016/TT-BTC dated December 30, 2016 of the Minister of Finance detailing and guiding the implementation of certain provisions of Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing the implementation of certain provisions of the State Budget Law shall be amended as follows:
"1. Clause 3 of Article 16 is amended as follows:
"3. Accounting for the issuance, exchange, and repurchase of domestic debt instruments in the state budget:
a) Amounts borrowed through the issuance of government bonds, treasury bills, and national construction bonds shall be accounted for at face value;
b) In cases where there is a difference between the selling price of government bonds, treasury bills, and national construction bonds and their face value, or between the face value of the bonds repurchased and the purchase price, such differences shall be recorded in a separate account; at year-end, based on the balance of the aforementioned separate account, if the difference is positive, it shall be recorded as a reduction in interest payments from the state budget, and if the difference is negative, it shall be recorded as an increase in interest payments from the state budget;
c) For differences in face value arising from the exchange of bonds, accounting shall not record these as revenues or expenditures of the state budget; if the difference is positive, it shall be recorded as a reduction in the state budget's debt, and if the difference is negative, it shall be recorded as an increase in the state budget's debt immediately after the bond exchange."
Article 2. Implementation clause
1. This Circular takes effect from November 15, 2021.
2. During the implementation process, if difficulties or obstacles arise, relevant agencies and units shall promptly report to the Ministry of Finance for examination and specific guidance./.
DEPUTY MINISTER
DEPUTY MINISTER
(Signed)
Vo Thanh Hung
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