Circular No. 8-NH/TT guiding the conversion of savings deposits at preferential rates during the currency exchange period on September 14, 1985.

CIRCULAR

STATE BANK OF VIETNAM

Guidelines for converting savings deposits at preferential rates during the currency exchange period on September 14, 1985

During the currency exchange on September 14, 1985, the State announced preferential policies for individuals with savings deposits. This is a significant policy of the Party and the State, which needs to be widely disseminated among the people and properly implemented to encourage everyone to enthusiastically deposit money into the savings fund.

The Governor of the State Bank provides guidelines for converting at preferential rates and accounting procedures within the Savings Fund system and the State Bank as follows:

I. OBJECTS ELIGIBLE FOR CONVERSION AT PREFERENTIAL RATES

1. Decision No. 01-HĐBT-TĐ dated September 13, 1985 of the Council of Ministers stipulates that all savings deposits made into the Socialist Savings Fund according to the forms of savings issued by the Council of Ministers, which still have balances as of the date of currency exchange, shall be converted at the following preferential rates:

- Deposits from March 1, 1978 or earlier will be converted at a rate of 1 old dong equals 1 new dong.

- Deposits from March 2, 1978 to May 31, 1981 will be converted at a rate of 2 old dongs equals 1 new dong.

- Deposits from June 1, 1981 to December 31, 1984 will be converted at a rate of 6 old dongs equals 1 new dong.

- Deposits from January 1, 1985 to July 31, 1985 will be converted at a rate of 9 old dongs equals 1 new dong.

- Deposits from August 1, 1985 until the date of currency exchange will be converted at a rate of 10 old dongs equals 1 new dong.

2. While the conversion of savings deposits at preferential rates has not been completed, if a depositor brings their passbook to make additional deposits or withdraw funds, the savings staff should draw a line through the current entry, transfer the balance as of September 13, 1985 to the next line, record the balance as of September 14, 1985 at a rate of 10 old dongs equals 1 new dong, and continue recording transactions in new dongs; once the conversion is complete, they will add the difference earned at the preferential rate.

3. The following cases do not qualify for conversion at preferential rates:

- Various types of deposits not under the forms of savings issued by the Council of Ministers, such as high-interest savings for purchasing foodstuffs, savings for export loans, and savings mobilized by Credit Cooperatives.

- Public funds of state agencies and production and business enterprises deposited under the forms of savings. These must be identified and excluded from savings deposits, and the interest and bonuses paid by the savings fund must be recovered.

- Preferential conversion rates do not apply to savings deposits existing before 1978 but not reissued in 1978. In case of direct complaints by depositors, the matter should be referred to the Director of the District, County, or City Savings Fund for resolution.

- Continuous periods of savings deposits are not counted for savings accounts that were closed out or replaced with new savings accounts between March 1, 1978 and September 13, 1985, except in the following cases: when the savings account book is fully used and a new book is required to continue transactions; when a depositor moves and transfers the amount on the savings account book to the State Bank to open a new savings account in the local savings fund where they have moved; when a lost savings account book is replaced. In these cases, the depositor must declare, and the relevant savings funds must verify this by a valid report confirmed by the Director of the District, County, or City Savings Fund.

4. Prior to conversion, it is necessary to prepare a statement of the savings deposit balance at each specified time point for verification. This statement must be verified and confirmed by a review committee (after verification and confirmation, the committee must sign a verification report). The committee consists of: the Director of the Savings Fund, the Head of the Bank's Accounting Department, the Head of the Savings Fund's Accounting Department, and a savings inspector from the District, County, or City Savings Fund.

II. METHOD OF CALCULATING CONVERSION AT PREFERENTIAL RATES

Calculating conversion at preferential rates must be based on the balance at the specified time points.

The balance at which time point is converted at the rate specified for that time point.

When there is an increase in the balance at a certain time point, the increase is converted at the rate specified for that time point.

When there is a decrease in the balance at a certain time point, the decrease is converted at the rate specified for that time point.

The sum of the amounts at time points with increased balances minus the amounts at time points with decreased balances is the amount converted. Here are some examples:

- Example A:

- Total converted amount: 10768 đ

- Balance on the savings passbook on September 13, 1985, already converted at 10 = 1: 300 đ

- Additional amount to be added to the savings passbook: 10468 đ

- Example B:

- Total converted amount: 5978 đ

- Balance on the savings passbook on September 13, 1985, already converted at 10 = 1: 1600 đ

- Additional amount to be added to the savings passbook: 4378 đ

- Example C: For fixed-term savings certificates deposited at different time points (issued after May 31, 1981)

III. PREPARATION OF DOCUMENTS, STATEMENTS, AUDITS, AND ACCOUNTING RECORDS

A. WORK AT THE SAVINGS FUND OUTLET

(Counter, agency, authorized savings)

1. Preparation of conversion calculation documents:

Based on the deposit slips retained at the savings fund outlet for each non-fixed term, fixed-term, and fixed-amount savings deposits still having balances as of the end of September 13, 1985, the savings fund outlet accountant prepares a conversion calculation document for each deposit slip and retained stub (model number 1-qđ attached). Use the reconciliation materials provided, such as the guidance table in Circular No. 165 dated June 19, 1981: column 4 balance as of March 1, 1978, column 10 balance as of May 31, 1981, and the statement of balance as of December 31, 1984.

2. Preparation of a list of depositors eligible for conversion (model number 2-qđ attached).

Pursuant to the nature of the deposit conversion of each passbook, prepare a list (two copies) for each savings scheme. After completing according to the form, total balances at various points must be checked, the accountant signs off on the form, the head of the basic savings fund reviews and controls it, and sends both copies along with the documents arranged in numerical order to the central savings fund for review and approval.

3. Upon receiving one copy of the list from the central savings fund that has been reviewed and approved, the basic savings fund shall enter the converted amount into the savings record slip, including the entire stub of the fixed-term savings record slip, clearly noting "conversion" before the converted amount. If the savings record slip already has activities since the date of currency exchange, only the difference between the calculated converted amount minus the end-of-day balance of September 13th transferred to September 14th according to the new unit of currency shall be entered. After recording, the accountant and the head of the basic savings fund must sign and stamp. The amount entered on which day should be recorded on that day, but interest will be calculated from the currency exchange date of September 14, 1985.

4. When the depositor brings the savings passbook to deposit money or withdraw money, the accountant of the basic savings fund must recheck the balances at various points on the passbook. If correct, record the converted amount to be received, marking "qđ" before the amount entered as stated in point 3. In case the customer complains about incorrect conversion, the accountant must directly verify again to reach agreement with the customer and report to the central savings fund for timely resolution within one week. After reapproval, record the converted amount to be received in the customer's savings passbook and adjust the list (1qđ, 2qđ), and adjust the amount entered on the savings record slip.

B. ACCOUNTING AT SAVINGS FUNDS OF DISTRICTS, COUNTIES,
MUNICIPALITIES, PROVINCES, CITIES, AND SPECIAL ZONES

1. Supplement accounting accounts in the system of savings fund accounting accounts:

166 - "Make up the conversion ratio of savings deposits" (debit balance). This account is used at district, county, municipality savings funds, provincial city savings funds, special zone savings funds, and central savings funds to record savings deposits made up after conversion according to the preferential ratio during the 1985 currency exchange period (total converted savings deposits is x, balance until the end of September 13th calculated in new currency is y, additional amount added to savings deposits due to conversion is z, then the make-up amount is x - y = z). Additional amounts made up according to the conversion ratio are summarized at each level and transferred to the central savings fund, which then transfers to the Accounting Department and State Budget Fund for payment of the currency exchange.

Debit: the full additional amount made up due to savings deposit conversion according to the preferential ratio.

Credit: payment, transfer to higher-level savings funds.

Debit Balance: additional amount made up according to the preferential ratio not yet transferred to higher levels.

2. Accounting and control work at municipal, district, and county savings funds (QTK-TT).

- Based on the conversion calculation documents and lists (two copies) submitted by the basic savings funds, the auditor and the head accountant of the central savings fund must reconcile with each savings record slip and stub according to the balances at various points and reconcile the aggregated figures on the accounting books at the central savings fund, rechecking each conversion calculation according to each point, summing up the converted amounts, if confirmed correct, sign off as having reconciled. Then, based on the reconciled conversion calculation documents, recalculate and sum up the list. These lists must be controlled, signed off, and confirmed by the auditor, head accountant, and Director of the municipal, district, and county savings funds, and confirmed by the Audit Committee through an audit report.

Use the attached list and conversion calculation documents as accounting vouchers for the additional amount made up according to the preferential ratio:

Debit: 166 - make up the conversion ratio of savings deposits.

Credit: various savings deposit accounts (according to the terms of savings deposits such as 020, 022, 023, 025, 026).

One copy of the list is returned to the basic savings fund.

- Simultaneously with the accounting entry on the account, record the converted amount according to the preferential ratio on the savings record slips and stubs, clearly noting "conversion" before the amount and following the method of entry as stated in point 3 of the basic savings fund, and must be signed off and stamped by the head accountant, ensuring that the turnover and balance on the savings record slips and stubs after entering the converted amount, summed up, match the turnover and balance on the savings deposit account at the central savings fund. For non-fixed-term savings with interest and bonus, at the central savings fund, there are no stubs but only tracking sheets, using the 1qđ document as a savings record slip.

3. Work at provincial, city, and special zone savings funds:

- The Director and Head Accountant of the provincial, city, and special zone savings funds must organize the verification of the conversion calculation of savings deposits according to the preferential ratio of the basic savings funds and districts, counties, municipalities.

- After verifying the conversion calculation documents and matching them correctly with the list (2-qđ) and matching correctly with the debit balance of account 166 "Make up the conversion ratio of savings deposits," decide to settle the debit balance of account 166 of the district, county, and municipal savings funds and transfer it to the provincial, city, and special zone savings funds for accounting no later than December 10, 1985. At the provincial, city, and special zone savings funds, open account 166 to aggregate the debit balance of account 166 of the district, county, and municipal savings funds transferred up. By no later than December 20, 1985, the provincial, city, and special zone savings funds transfer the debit balance of account 166 to the central savings fund for aggregation and transfer to the Accounting Department and State Budget Fund for payment of the currency exchange before the 1985 settlement period.

IV. IMPLEMENTATION

1. Under the guidance of the Party committee and People's Committee at all levels and in close coordination with relevant sectors and mass organizations, the Director of the State Bank and the savings fund must organize extensive propaganda among the people regarding preferential policies for savings deposits to encourage the people to enthusiastically deposit money into the savings fund; guide depositors on how to calculate exchange rates, aiming for uniform implementation and supervision to ensure the accuracy of exchange rate calculations by grassroots savings funds; mobilize depositors to remain calm while waiting for the preferential exchange rate calculation (do not withdraw their accounts before the converted amount is credited) and continue to deposit money, spending only what is necessary.

2. It is necessary to strengthen inspection and supervision work at each level of the savings fund and by higher-level savings funds as mentioned in Section III. It is required to gather bank accounting officers and savings fund accounting and auditing staff for a period of two months to reinforce the forces responsible for calculating exchange rates and inspecting the calculation of savings deposits at district, county, and town grassroots savings funds; it is essential to identify and strictly punish any cases of embezzlement, abuse of power, or negligence leading to numerous errors in exchange rate calculations; it is necessary to closely monitor savings deposits after exchange rate conversion, particularly those of individuals who have been absent for long periods without transactions, preventing internal abuse; personnel changes between grassroots savings funds must be carried out according to established regulations to enhance oversight.

3. The deadline for completing the calculation of savings deposits according to preferential exchange rates and entering them into deposit books and certificates shall be no later than December 20, 1985. All levels of banks and savings funds must allocate staff directly to assist and participate in the calculation and supervision processes at grassroots savings funds and credit cooperatives.

4. Directors of the State Bank and savings funds at all levels must implement strict measures to guide this work, while ensuring that savings deposit transactions are convenient for the people, and must not obstruct such transactions due to being busy with preferential exchange rate calculations.

The Central Savings Fund Director, the Accounting Department Head and the National Budget Implementation Department Head, Branch Bank Directors, Provincial, City, Special Zone, District, County, and Town Savings Fund Directors are responsible for organizing the implementation of this Circular.