Decision No. 839/TC-QĐ/KBNN stipulates the issuance of two-year treasury bonds with an annual interest rate of 12%, applicable in 24 provinces and cities. The bonds shall only be sold to Vietnamese citizens and foreigners legally working in Vietnam.
Scope of application
Vietnamese citizens residing in Vietnam; Foreigners legally working and living in Vietnam
Key points
- Two-year treasury bonds with an annual interest rate of 12% will be issued from September 10, 1996.
- The minimum denomination of a bond is 100,000 VND (one hundred thousand dong), with no maximum limit.
- Bondholders who wish to redeem their bonds early, if the purchase period is less than 12 months, shall not receive interest; if the purchase period is between 12 and 24 months, they shall receive interest for one year at an annual rate of 11%.
- Treasury bonds may be freely bought, sold, transferred, inherited, and used as collateral or pledge in credit relationships.
- Proceeds from the sale of bonds shall be recorded in the central government budget; funds for bond repayment and related issuance and payment expenses shall be guaranteed by the central government budget.
🌐 Social impact of this document
- Positive impact: Creating new investment channels for the public, increasing capital for the State Treasury.
- Negative impact: Limiting the eligible buyers of bonds, which may cause difficulties for businesses and organizations that are not permitted to purchase them.
❓ Frequently asked questions
What is the interest rate on treasury bonds?
The interest rate on two-year treasury bonds is 12% per annum.
Who is eligible to buy treasury bonds?
Treasury bonds shall only be sold to Vietnamese citizens residing in Vietnam and foreigners legally working and living in Vietnam.
What is the minimum denomination of a bond?
The minimum denomination of a bond is 100,000 VND (one hundred thousand dong).
Will early redemption of bonds entitle the holder to interest?
If the purchase period is less than 12 months, no interest shall be paid; if the purchase period is between 12 and 24 months, interest for one year at an annual rate of 11% shall be paid.
What can treasury bonds be used for?
Treasury bonds may be freely bought, sold, transferred, inherited, and used as collateral or pledge in credit relationships.
Full text
Pursuant to …;
Regarding the issuance of two-year Treasury bonds
___________________________
THE MINISTER OF FINANCE
Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the tasks, powers, and organizational structure of the Ministry of Finance;
Pursuant to Decree No. 25/CP dated April 5, 1995 of the Government on the tasks, powers, and organizational structure of the State Treasury under the Ministry of Finance;
Pursuant to Decree No. 72/CP dated July 26, 1994 of the Government on the issuance regulations for government bonds;
At the proposal of the Director General of the State Treasury,
Pursuant to …;
Article 1. Issuing two-year Treasury bonds with an annual interest rate of 12% from September 10, 1996 in 24 provinces and cities listed in the attached schedule.
Article 2. The Treasury bonds will be sold to the following entities: Vietnamese citizens residing within Vietnam. Foreign individuals working and living legally in Vietnam.
Enterprises, agencies, and mass organizations shall not purchase these Treasury bonds.
Article 3. Treasury bonds will be recorded and settled in Vietnamese Dong (VND). The minimum amount of one bond is 100,000 VND (one hundred thousand VND), with no maximum limit. The principal and interest of the bonds will be paid once at maturity (after 24 months).
In cases where the holder of the bond requests early redemption, if the time since purchasing the bond is less than 12 months, no interest will be payable; if the time since purchasing the bond is 12 months or more but less than 24 months, the holder will receive interest for one year at an annual interest rate of 11%.
Article 4. Treasury bonds will bear the name and address of the purchaser; they may be freely bought, sold, transferred, and inherited among the eligible purchasers as stipulated in Article 2 of this Decision; they can be used as collateral in credit relationships. Treasury bonds shall not be used to replace currency in circulation or to pay taxes to the state budget.
Article 5. Proceeds from the sale of Treasury bonds will be recorded in the central budget; funds for settling Treasury bonds and expenses related to their issuance and settlement will be guaranteed by the central budget.
Article 6. The General Director of the State Treasury, heads of units under the Ministry of Finance, and Directors of Provincial State Treasuries responsible for issuing Treasury bonds shall be responsible for implementing this Decision.
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MINISTRY OF FINANCE Hồ Tế (Signed) |
LIST
PROVINCES AND CITIES ISSUING TWO-YEAR TREASURY BONDS WITH AN ANNUAL INTEREST RATE OF 12% (Attached to Decision No. 839 TC-QĐ/KBNN dated August 29, 1996 of the Minister of Finance)
1. Hanoi 13. Thanh Hoa
2. Haiphong 14. Nghe An
3. Quang Ninh 15. Ha Tinh
4. Lang Son 16. Thua Thien-Hue
5. Tuyen Quang 17. Quang Nam-Da Nang
6. Lai Chau 18. Binh Dinh
7. Yen Bai 19. Khanh Hoa
8. Ha Tay 20. Dong Nai
9. Hai Hung 21. Can Tho
10. Nam Ha 22. Tra Vinh
11. Thai Binh 23. Ba Ria-Vung Tau
12. Ninh Binh 24. Ho Chi Minh City
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