Joint Circular No. 92/2016/TTLT-BTC-NHNN guiding the issuance of Treasury bills through the State Bank of Vietnam,

JOINT CIRCULAR

GUIDELINES ON THE ISSUE OF TREASURY BILLS THROUGH THE STATE BANK OF VIETNAM

Pursuant to the Government Decree No. 91/2018/NĐ-CP dated June 26, 2018 on the issuance and management of government debt guarantees;Pursuant to Decree No. 24/2018/NĐ-CP dated February 27, 2018 of the Government on handling complaints and reports in the fields of labor, vocational education, dispatching Vietnamese workers abroad under contracts, employment, occupational safety and health;01/2002/QH11 dated December 16, 2002;

based on the Public Debt Management LawNo. 29/2009/QH12 dated June 17, 2009;

Pursuant to the Law on the State Bank of Vietnam No.No. 46/2010/QH12 days 1June 6, 2010;

Decree No. dated January 5, 2011, of the Government on the issuance of government bonds, government-guaranteed bonds, and local government bonds; January 5, 2011 of the Government on the issuance of government bonds, bonds guaranteed by the Government, and local government bonds;policiesbonds,policiesbonds guaranteed by the Government, and local government bonds;"b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation."5/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

/NĐ-CP of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;1156/2013/NĐ-CPonState Property.

Decree No. November 11, 3 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam; 11 Pursuant to Decree No. 32/2019/NĐ-CP dated April 10, 2019 of the Government on assigning tasks, procurement or tendering for the supply of products and services using state budget from regular operating expenses;1The Minister of Finance and Governor of the State Bank of Vietnam issue this Circular to guide the issuance of treasury bills through the State Bank of Vietnam.onThis Circular provides detailed guidance on the issuance of treasury bills in accordance with Clause 1, Article 11 of Decree No. 01/2011/NĐ-CP dated January 5, 2011 of the Government on the issuance of government bonds, bonds guaranteed by the Government, and local government bonds (hereinafter referred to as Decree No. 01/2011/NĐ-CP), including:

1. Issuance of treasury bills through auction via the State Bank of Vietnam Trading Center (hereinafter referred to as the State Bank of Vietnam Trading Center).No.2. Direct issuance of treasury bills to the State Bank of Vietnam (hereinafter referred to as the State Bank of Vietnam) pursuant to the decision of the Prime Minister.policiesThis Circular applies to the Ministry of Finance, the State Bank of Vietnam, the National Treasury, the State Bank of Vietnam Trading Center, the Vietnam Securities Depository Center, the Stock Exchange, and other organizations and individuals related to the issuance of treasury bills through the State Bank of Vietnam.

Chapter 1 GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 3. Definitions

In addition to the terms defined in Decree No. 01/2011/NĐ-CP, the terms in this Circular shall be understood as follows:

1. "Treasury bill" (hereinafter referred to as "bill") is a type of government bond with a term not exceeding 52 weeks and denominated in Vietnamese Dong.

Article 2. Applicability

2. "Bill issued through auction" is a bill issued by the National Treasury through auction via the State Bank of Vietnam Trading Center.

3. Amend Clause 3 Article 2 as follows:3. "Bill issued directly to the State Bank" is a bill issued directly to the State Bank by the National Treasury pursuant to the decision of the Prime Minister.

4. "First-time issued bill" is a new bill issued for the first time on the primary market.

5. "Supplementary issued bill" is a bill issued to supplement an existing bill code and has the same maturity date as the existing bill.

6. "Competitive interest rate bidding" is the process where participants in the bidding for bills offer their bid interest rates for the issuer to select the winning bid interest rate.

7. "Non-competitive interest rate bidding" is the process where participants in the bidding do not offer bid interest rates but register to purchase bills at the winning bid interest rate determined by competitive interest rate bidding.

8. "Single-price bidding" is a method of determining the bidding result whereby the issue interest rate of the bill is the highest winning bid interest rate and is applied uniformly to all winning bidders.

9. "Multiple-price bidding" is a method of determining the bidding result whereby the issue interest rate of the bill for each winning bidder is exactly equal to the bid interest rate of that bidder.

10. "Date of organizing the issuance of bills" is the date of organizing the auction for bills issued through auction via the State Bank of Vietnam Trading Center.

11. "Date of issuing bills" is the payment date for purchasing bills.

12. "Payment date for purchasing bills" is the date when the purchaser pays for the purchased bills to the issuer.

13. "Final registration date for bills" is the date when the Vietnam Securities Depository Center determines the list of bill owners for payment.

14. "Remaining term of bills" is the actual remaining time from the supplementary issuance date of the bills to the maturity date of the bills.

11. "Issue date" is the payment date for purchasing the bill.

12. "Payment date for purchasing the bill" is the date on which the bill buyer pays the purchase price to the issuer.

13. "Final registration date of the bill" is the date on which the Vietnam Securities Depository determines the list of bill owners for bill settlement.

14. "Remaining term of the bill" is the actual remaining time from the supplementary issue date of the bill to its maturity date.

Article 4. Issuing Subject

1. The issuing subject of Treasury Bills is the Ministry of Finance.

2. The Ministry of Finance authorizes the State Treasury to organize the issuance of Treasury Bills in accordance with the provisions of this Circular.

Article 5. Terms and Conditions of Treasury Bills

The terms and conditions of Treasury Bills shall be implemented in accordance with the provisions of Article 6 of Decree No. 01/2011/ND-CP and the following regulations:

1. Tenor of Treasury Bills

a) Treasury Bills have standard tenors of thirteen weeks, twenty-six weeks, and fifty-two weeks;

b) The Ministry of Finance shall stipulate the issuance of other standard tenors of Treasury Bills when necessary but not exceeding fifty-two weeks;

c) Based on the provisions of points a and b of this Clause and the objectives of treasury management, the State Treasury shall specify the specific tenors of Treasury Bills for each issuance period.

2. Face Value of Treasury Bills

Treasury Bills have a face value of one hundred thousand (100,000) VND. Other face values are multiples of one hundred thousand (100,000) VND.

3. Methods of Issuing Treasury Bills

a) Auction through the State Bank of Vietnam Trading Center;

b) Direct issuance to the State Bank of Vietnam pursuant to the decision of the Prime Minister.

4. Form of Treasury Bills

a) Treasury Bills are issued in the form of book-entry or electronic data;

b) The State Treasury shall notify specifically about the form of issuing Treasury Bills in the auction announcement.

5. Issuance and Payment of Treasury Bills

Treasury Bills are issued at a discount and are paid once at face value on the maturity date.

6. Supplementary Issuance of Treasury Bills

The State Treasury decides on supplementary issuance of Treasury Bills to ensure liquidity in the market.

Article 6. Interest Rate on Issuance of Treasury Bills

1. For Treasury Bills issued through the auction method via the State Bank of Vietnam Trading Center, the Ministry of Finance shall stipulate the interest rate range for issuing Treasury Bills during each period or each issuance session. Based on the interest rate range stipulated by the Ministry of Finance, the State Treasury shall select and decide on the interest rate for issuing Treasury Bills for each auction session.

2. For Treasury Bills directly issued to the State Bank of Vietnam, the interest rate on issuing Treasury Bills is the agreed interest rate between the Ministry of Finance and the State Bank of Vietnam as stipulated in Article 16 of this Circular.

Chapter 2 ORGANIZATION OF TREASURY BILL ISSUANCE

Section 1. ISSUANCE OF TREASURY BILLS THROUGH AUCTION AT THE STATE BANK OF VIETNAM TRADING CENTER

Article 7. Schedule for Issuance of Treasury Bills

1. The day of organizing the issuance of Treasury Bills is Monday. In some cases, to ensure the development of the bond market and treasury management needs, the State Treasury may decide on a different day for organizing the issuance of Treasury Bills from Monday.

2. Day of payment for purchasing Treasury Bills:

The day of payment for purchasing Treasury Bills is the next working day immediately following the day of organizing the issuance of Treasury Bills.

3. Based on the provisions of Clause 1 and 2 of this Article, the State Treasury shall announce the anticipated schedule for issuing Treasury Bills through auction in the following year (if applicable) on its electronic news website and notify the State Bank of Vietnam Trading Center and the Securities Trading Center before December 31 of each year.

Article 8. Participants in the Auction of Treasury Bills

The participants eligible to participate in the auction of Treasury Bills (hereinafter referred to as tenderers of Treasury Bills) are the tenderers of Government Bonds selected and announced by the Ministry of Finance in accordance with Circular No. 111/2015/TT-BTC dated July 28, 2015 of the Ministry of Finance guiding the issuance of Government Bonds in the domestic market (hereinafter referred to as Circular No. 111/2015/TT-BTC) and any amendments, supplements, or replacements (if any).

Article 9. Forms and methods for determining the results of bidding

1. Issuance of treasury bills through bidding shall be carried out in one (01) of two (02) forms, including:

a) Competitive bidding based on interest rate;

b) Combined bidding with competitive interest rates and non-competitive interest rates.

2. The results of bidding for treasury bills shall be determined in one (01) of two (02) methods, including:

a) Single-price bidding;

b) Multiple-price bidding.

Based on the development of the market, the State Treasury shall report to the Ministry of Finance for approval of the policy before applying the multi-price bidding method. The content of the approval from the Ministry of Finance includes: the time to organize the bidding and the term of treasury bills expected to be issued under the multi-price bidding method.

3. The State Treasury shall notify in detail the form of bidding and the method for determining the results of bidding in the bidding announcement.

Article 10. Principles for organizing bidding

1. Maintain confidentiality of all bidding information of bidding members and information related to the interest rate range of the Ministry of Finance.

2. Implement transparency and equality in rights and obligations among bidding members in accordance with the provisions of the law.

3. In cases where the bidding session is organized in the form of combined competitive interest rates and non-competitive interest rates as stipulated in point b Clause 1 Article 9 of this Circular, it must ensure that the total volume of treasury bills issued to non-competitive bidding members does not exceed thirty percent (30%) of the total volume of treasury bills called for bidding in the bidding session.

Article 11. Procedures and formalities for organizing bidding

1. At least three (03) working days before the date of organizing the issuance of treasury bills, the State Treasury sends the issuance announcement of treasury bills to the State Bank Trading Department and the Securities Trading Department. The contents of the announcement include:

a) The treasury bill code expected to be issued by the Vietnam Securities Depository Center;

b) The term of the treasury bill, the amount called for bidding, the form of the treasury bill for each expected treasury bill code, specifying whether the treasury bill is being issued for the first time or as a supplementary issue. For the case of supplementary issuance of treasury bills, the announcement must specify the conditions and terms of the currently circulating treasury bills;

c) The issuance date, the issue date, the payment date for purchasing treasury bills, and the maturity date for each treasury bill code;

d) The method of paying matured treasury bills;

đ) The form of bidding;

e) The method for determining the results of bidding;

g) The account for receiving funds for purchasing treasury bills of the State Treasury.

2. At least two (02) working days before the date of organizing the treasury bill bidding session, based on the request of the State Treasury, the State Bank Trading Department sends the treasury bill issuance announcement to all bidding members as stipulated in Article 8 of this Circular and publishes the information on the electronic news website of the State Bank Trading Department.

3. By no later than ten thirty (10:30) on the issuance date, bidding members send the bidding information to the State Bank Trading Department according to the procedures and bidding registration forms prescribed by the State Bank Trading Department. In the case of competitive interest rate bidding, each bidding member and each customer of the bidding member is allowed to bid up to five (05) bid levels on one treasury bill code called for bidding, each bid level including the bid interest rate (to two decimal places) and the corresponding bid volume. For the case of purchasing treasury bills for customers, the bidding member must provide full customer names, bid interest rates, and corresponding bid volumes for each customer.

4. By no later than fifteen (15) minutes after the last bidding registration deadline specified in Clause 3 of this Article, the State Bank Trading Department opens the bids, compiles the bidding information, and sends it to the State Treasury.

5. Based on the compiled bidding information received from the State Bank Trading Department, the State Treasury determines the issuance interest rate for each treasury bill code called for bidding and notifies the State Bank Trading Department by no later than eleven thirty (11:30) on the issuance date so that the State Bank Trading Department can determine the results of the treasury bill bidding as stipulated in Article 12 of this Circular.

6. After the end of the treasury bill bidding session, the State Bank Trading Department announces the bidding results to the bidding members via the electronic treasury bill bidding system.

7. After the end of the treasury bill bidding session, the State Bank Trading Department provides detailed issuance results, including the bidding results as stipulated in Clause 5 of this Article and additional treasury bill issuance results immediately after the bidding session as stipulated in Article 13 of this Circular (if applicable), to the State Treasury, the Vietnam Securities Depository Center, and the Securities Trading Department according to the format prescribed in Appendix 1 of this Circular. At the same time, the units implement the publication of information as stipulated in Article 25 of this Circular.

Article 12. Determination of Auction Results

1. Basis for determining the issuance interest rate, winning bid volume, and bill sale price:

a) Bid interest rate and quantity of bills offered;

b) Quantity of bills called for bidding;

c) Issuance interest rate range for bills as prescribed in Clause 1, Article 6 of this Circular.

2. Method for determining the winning bid interest rate:

a) For single-price bidding method:

The winning bid interest rate is the highest bid interest rate applicable to all bidders (both competitive and non-competitive interest rate bidders), selected in ascending order of bid interest rates, satisfying simultaneously the following two conditions:

- Within the issuance interest rate range for bills as prescribed by the Ministry of Finance;

- The cumulative issuance quantity of bills up to the winning bid interest rate does not exceed the quantity of bills called for bidding.

b) For multi-price bidding method:

The winning bid interest rate applied to each competitive bidder is their bid interest rate, selected in ascending order of bid interest rates, satisfying simultaneously the following two conditions:

- The weighted average of winning bid interest rates does not exceed the issuance interest rate range for bills as prescribed by the Ministry of Finance;

- The cumulative issuance quantity of bills up to the highest winning bid interest rate does not exceed the quantity of bills called for bidding;

- The winning bid interest rate applied to non-competitive bidders is the weighted average of winning bid interest rates, rounded down to two decimal places.

3. Method for determining the winning bid quantity of bills for each bidder:

a) For bills bid on through competitive interest rate bidding:

The issuance quantity of bills for each competitive bidder is equivalent to their bid quantity. In case at the highest winning bid interest rate, the cumulative bid quantity up to the highest winning bid interest rate exceeds the quantity of bills called for bidding, after deducting the bid quantities at lower interest rates, the remaining quantity of bills called for bidding is allocated to bidders at the highest winning bid interest rate in proportion to their bid quantities, rounded down to ten thousand units.

b) For bills bid on through combined competitive and non-competitive interest rate bidding:

- The issuance quantity of bills for each competitive bidder is equivalent to their bid quantity. In case at the highest winning bid interest rate, the cumulative bid quantity up to the highest winning bid interest rate exceeds the quantity of bills called for bidding, after deducting the bid quantities at lower interest rates and the issuance quantities for non-competitive bidders, the remaining quantity is allocated to bidders at the highest winning bid interest rate in proportion to their bid quantities, rounded down to ten thousand units.

- The issuance quantity of bills for each non-competitive bidder is equivalent to their bid quantity. If the total bid quantity exceeds the limit specified in Clause 3, Article 10 of this Circular, the issuance quantity for each non-competitive bidder is allocated in proportion to their bid quantity, rounded down to ten thousand units.

- In case all competitive bidders do not win the bid, bills will not be issued to non-competitive bidders.

4. Illustrative examples of determining the winning bid interest rate and allocation of winning bid quantities are provided in Appendix 2 of this Circular.

5. In case the winning bid quantity is less than the quantity of bills called for bidding, the State Bank has the right to purchase the difference between the winning bid quantity and the quantity of bills called for bidding. The State Bank purchases bills at the issuance interest rate of the auction session in the case of single-price bidding and at the weighted average of issuance interest rates in the case of multi-price bidding. In the absence of a winning bid interest rate, the State Bank has the right to purchase bills at the agreed interest rate between the Ministry of Finance and the State Bank according to the principles stipulated in Clause 3, Article 16 of this Circular. The number of bills purchased by the State Bank in the issuance session is included in the results of the auction session.

6. Determination of the bill sale price:

a. The sale price of one (01) bill, both for initial issuance and supplementary issuance, is determined by the following formula:

Where:

G = Sale price of one (01) bill (rounded to the nearest unit of currency);

MG = Face value of the bill;

L_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.} = Issuance interest rate for the bill owner (%/365 days);

n = Actual number of days from the payment date to the maturity date of the bill.

b. The amount of bill sales is determined by the following formula:

GG = G x N |||

Where:

GG = Amount of bill sales;

G = Sale price of one (01) bill;

N = Quantity of bills issued to the winning bidder.

Article 13. Issuing Additional Treasury Bills Immediately After Auction Session

1. Based on the auction results stipulated in Article 12 of this Circular, the State Treasury shall decide on issuing additional treasury bills immediately after the auction session and notify the State Bank Trading Department in accordance with Clause 2 of this Article.

2. Procedures for issuing additional treasury bills immediately after the auction session

a) Principles for issuing additional treasury bills immediately after the auction session

- Only applicable to treasury bill codes that have won bids at the auction session held at 10:30 am as specified in Clause 6 of Article 11 of this Circular.

- The volume of additional issuance shall be decided by the State Treasury but shall not exceed thirty percent (30%) of the amount tendered for each treasury bill code as announced in Clause 1 of Article 11 of this Circular.

- The interest rate for issuing additional treasury bills for each tendered bill code shall be determined by the winning bid interest rate in the case of single-price bidding or by the weighted average of the winning bid interest rates in the case of multiple-price bidding, rounded down to two (02) decimal places.

b) The State Treasury shall notify the State Bank Trading Department about the decision to issue additional treasury bills immediately after the auction session. The notification content includes: the additional treasury bill code, the additional issuance volume, the additional issuance interest rate, and the time for registering to purchase additional bills. The time for the State Treasury to notify the State Bank Trading Department about the additional issuance of treasury bills immediately after the auction session shall be carried out concurrently with the time for the State Treasury to notify the State Bank Trading Department about the treasury bill issuance interest rate as stipulated in Clause 5 of Article 11 of this Circular.

c) The State Bank Trading Department shall notify the additional issuance of treasury bills immediately after the auction session to the bidding members.

d) Conditions for participating in registering to purchase additional treasury bills immediately after the auction session:

- Being a treasury bill bidding member;

- Winning a bid for any treasury bill code at the auction session as specified in Clause 6 of Article 11 of this Circular.

đ) Bidding members meeting the conditions stipulated in point d of this Clause may choose to implement or not implement the registration to purchase additional treasury bills immediately after the auction session. Bidding members can register to purchase additional treasury bills for themselves or their customers.

e) The quantity registered to purchase additional treasury bills by each bidding member (including for themselves or their customers) for each treasury bill code shall not exceed the additional issuance volume immediately after the auction session as announced by the State Treasury as stipulated in points b and c of this Clause.

g) Information for registering to purchase additional treasury bills includes:

- The additional treasury bill code being registered to purchase;

- The corresponding quantity registered to purchase additional for each treasury bill code;

- Customer name.

h) Principles for determining the additional issuance volume for bidding members:

- In the case where the quantity registered to purchase additional is less than or equal to the additional issuance volume immediately after the auction session as announced by the State Treasury as stipulated in point b of this Clause, the additional issuance volume for each bidding member shall be equal to the quantity registered to purchase additional of that bidding member.

- In the case where the quantity registered to purchase additional exceeds the additional issuance volume immediately after the auction session as announced by the State Treasury as stipulated in point b of this Clause, the allocation ratio of treasury bills for each bidding member shall be calculated based on the ratio of the quantity registered to purchase additional of each bidding member over the total quantity registered to purchase additional for each treasury bill code and rounded down to ten thousand (10,000) units of treasury bills.

i) Based on the information registered to purchase additional, the announcement of additional treasury bill issuance by the State Treasury, and the principles for determining the additional issuance volume, the State Bank Trading Department shall determine the additional issuance volume for each bidding member and notify the State Treasury.

k) At the end of the treasury bill issuance session, the State Bank Trading Department shall notify the results of additional treasury bill issuance to the bidding members who have registered to purchase additional treasury bills immediately after the auction session.

Article 14. Payment for Purchasing Treasury Bills

1. By no later than 14:00 on the payment date for purchasing treasury bills announced by the State Treasury, successful bidders must ensure that the full amount for purchasing treasury bills (including the amount purchased by their clients) has been paid and credited to the account designated by the State Treasury. In cases where clients fail to make the payment for purchasing treasury bills, the successful bidder shall be responsible for making the full payment. The successful bidder must ensure that all required information is fully recorded on the transfer order as requested by the State Treasury.

2. Clients purchasing treasury bills through bidding members may pay the purchase price through the bidding member or directly transfer it to the account designated by the State Treasury, but they must ensure compliance with the time limit specified in Clause 1 of this Article. If clients transfer the purchase price for treasury bills through the bidding member to the account designated by the State Treasury, the bidding member must record complete information about the bill code, bill owner, quantity of bills, and total purchase amount of the bill owner.

3. Based on the results of the transfer made by the successful bidder or the client of the successful bidder, the State Treasury sends a confirmation list of completed payments for purchasing treasury bills to the Vietnam Securities Depository Center to process registration and custody of treasury bills for the bill owners.

Article 15. Late Payment Interest for Purchasing Treasury Bills

1. The State Treasury is entitled to collect late payment interest for purchasing treasury bills if an organization purchasing treasury bills delays transferring funds by one (01) day or more from the payment date according to the announcement of the State Treasury as stipulated in Article 14 of this Circular. The amount of late payment interest payable is calculated using the following formula:

P = G × N × L × n/365xNxL₀b) Circular No. 04/2017/TT-BKHCN dated May 22, 2017 of the Minister of Science and Technology on amending National Technical Regulation No. 1:2015/BKHCN on Gasoline, Diesel Fuel and Biofuel. 150% P = Late payment penalty interest;

Where:

N = Quantity of issued treasury bills that have not been paid on time;

L = Overnight interest rate announced by the State Bank on the first day of delay (% per annum);

G = Sale price of one (01) bill;

L₀n = Actual number of days delayed from the payment date.

n = The actual number of days late in payment counted from the payment date.

2. The State Treasury notifies organizations that have delayed payment for purchasing treasury bills in writing, specifying the amount of late payment interest, the payment deadline, and the account for depositing the late payment interest.

3. Organizations that have delayed payment for purchasing treasury bills must pay the late payment interest into the state budget according to the notification of the State Treasury. Late payment interest for purchasing treasury bills is recorded as revenue in the state budget in accordance with the Law on State Budget and guiding documents.

4. Five (05) working days after the payment date for purchasing treasury bills, if the successful bidder does not make payment or makes an insufficient payment for the purchase amount of treasury bills, the State Treasury will cancel the issuance result for the unpaid quantity of treasury bills and issue a written notice to the successful bidder, the State Bank Trading Department, the Securities Trading Department, and the Vietnam Securities Depository Center.

Section 2. ISSUANCE OF TREASURY BILLS DIRECTLY TO THE STATE BANK OF VIETNAM

Article 16. Issuance of Treasury Bills Directly to the State Bank of Vietnam

1. The Ministry of Finance shall take the lead in coordinating and reaching consensus with the State Bank of Vietnam to develop the issuance plan for treasury bills directly to the State Bank for each issuance period to be submitted to the Prime Minister for decision. The issuance plan shall include the following main contents:

a) Purpose of issuance;

b) Volume, term, form of treasury bills;

c) Face value of treasury bills;

d) Expected issuance interest rate;

đ) Currency of issuance;

e) Anticipated issuance date;

g) Method and source of payment for treasury bills upon maturity;

h) Registration, custody, and listing of treasury bill transactions.

2. Based on the Prime Minister's decision, the Ministry of Finance shall discuss and reach consensus with the State Bank of Vietnam regarding the volume, interest rate, term, and issuance plan for treasury bills directly to the State Bank, ensuring that the issuance date and maturity date of the treasury bills fall within the same fiscal year.

3. The interest rate for treasury bills issued directly to the State Bank is the agreed interest rate between the Ministry of Finance and the State Bank, based on reference to the interest rate for treasury bills issued by the State Treasury or the interest rate for State Bank treasury bills or the interest rate for government bond transactions with remaining terms equivalent to the term of treasury bills issued directly to the State Bank at the nearest time point.

4. Based on the volume, interest rate, term, and date reached through the provisions of Clause 2 of this Article, the State Treasury shall sign a Contract for the direct sale of treasury bills to the State Bank according to the model in Appendix 3 of this Circular, which includes the conditions and terms of the issuance period, including: volume, term, issuance interest rate, issuance date, selling price of treasury bills, payment date for purchasing treasury bills, maturity date of treasury bills, account for receiving purchase payments, and registration and custody of treasury bills (if applicable).

5. Based on the treasury bill purchase and sale contract, the State Treasury shall monitor the transfer of funds for purchasing treasury bills by the State Bank, record accounting entries, and settle treasury bills upon maturity.

Chapter 3 REGISTRATION, CUSTODY, AND LISTING AND TRANSACTION OF TREASURY BILLS

Article 17. Registration and Custody of Treasury Bills

1. Treasury bills issued through auction at the State Bank Trading Center shall be centrally registered and custodied at the Vietnam Securities Depository.

Treasury bills issued directly to the State Bank shall be centrally registered and custodied at the Vietnam Securities Depository upon request of the State Bank.

2. Based on the notification from the State Treasury regarding the issuance of treasury bills and the notification from the State Bank Trading Center regarding the auction results, the Vietnam Securities Depository shall register treasury bills on the payment date for purchasing treasury bills.

3. The Vietnam Securities Depository shall custody treasury bills into the account of the owner after receiving the confirmation document from the State Treasury indicating the completion of the purchase payment.

4. The Vietnam Securities Depository shall send a notification of treasury bill registration to the Stock Exchange Trading Center to list the treasury bills.

5. Cancellation of registration of treasury bills not settled shall be carried out by the Vietnam Securities Depository based on the notification of cancellation of issuance results from the State Treasury.

Article 18. Listing and Trading of Treasury Bills

1. Treasury bills issued through auction at the State Bank of Vietnam Trading Center shall be listed and traded centrally at the Securities Trading Center. Treasury bills directly issued to the State Bank of Vietnam shall be listed at the Securities Trading Center upon request of the State Bank of Vietnam and the National Treasury.

2. The Securities Trading Center shall list treasury bills based on the notification from the Vietnam Securities Depository regarding the registration of treasury bills. Treasury bills shall be listed no later than the payment date for purchasing treasury bills.

3. After being listed, treasury bills shall be traded no later than the second working day following the payment date for purchasing treasury bills.

4. The Securities Trading Center shall cancel the listing of treasury bills that have not been paid for based on the notification of the National Treasury regarding the cancellation of the issuance results and the notification of the Vietnam Securities Depository regarding the cancellation of the registration of treasury bills that have not been paid for.

Chapter 4 TREASURY BILL PAYMENT AND ISSUE FEESAND TREASURY BILL PAYMENT

Article 19. Payment of Treasury Bills Upon Maturity

1. The Central Government ensures the source of payment when treasury bills mature.

2. The process of paying treasury bills issued through auction at the State Bank of Vietnam Trading Center:

a) By the 25th of each month, the Vietnam Securities Depository shall notify the National Treasury of the amount of treasury bill payments for the following month and the payment date (if applicable).

b) No later than 11:30 on the payment date of the treasury bill, the National Treasury shall ensure that the full amount of the treasury bill payment for the payment date is transferred and credited to the account notified by the Vietnam Securities Depository.

c) On the payment date of the treasury bill, the Vietnam Securities Depository shall, through depositary members, transfer the treasury bill payment to the owner of the treasury bill determined on the final registration date.

d) In case the National Treasury transfers the treasury bill payment into the account notified by the Vietnam Securities Depository later than the time specified in point b of this Clause, the National Treasury will bear the late payment interest as notified by the Vietnam Securities Depository. Late payment interest will be allocated by the Vietnam Securities Depository to transfer into the account of the treasury bill owner according to the proportion of treasury bills owned. Late payment interest is determined according to the principle stipulated in Article 15 of this Circular.

đ) In case the National Treasury transfers the treasury bill payment into the account notified by the Vietnam Securities Depository within the time specified in point b of this Clause but the Vietnam Securities Depository transfers the treasury bill payment into the account of the treasury bill owner after the payment date of the treasury bill, the Vietnam Securities Depository will have to pay late payment interest to the treasury bill owner. Late payment interest is determined according to the principle stipulated in Article 15 of this Circular.

3. The process of paying treasury bills directly issued to the State Bank of Vietnam:

a) For treasury bills registered and centrally deposited at the Vietnam Securities Depository, follow the provisions of Clause 2 of this Article.

b) For treasury bills not registered and centrally deposited at the Vietnam Securities Depository:

- Five (5) working days before the payment date of the treasury bill, the State Bank of Vietnam shall notify the National Treasury of the amount of treasury bills to be paid, the payment date of the treasury bill, and the designated payment account of the State Bank of Vietnam.

- On the payment date of the treasury bill, the National Treasury shall transfer the treasury bill payment into the designated account of the State Bank of Vietnam.

- In case the National Treasury transfers the treasury bill payment into the designated payment account of the State Bank of Vietnam later than the specified time, the National Treasury will bear the late payment interest for the State Bank of Vietnam. Late payment interest is determined according to the principle stipulated in Article 15 of this Circular and transferred into the designated payment account of the State Bank of Vietnam.

Article 20. Fees for organizing the issuance and payment of Treasury bills

1. The Central Government Budget shall ensure the source to pay the fees for organizing the issuance and payment of Treasury bills. Within the first ten (10) working days of each month, based on the volume of issuance and payment of Treasury bills in the preceding month, the State Treasury shall proactively issue orders to deduct funds from the State Budget account to pay the expenses to the beneficiary units.

a) 0.01% of the nominal value of Treasury bills issued through auction shall be paid to the State Treasury;

b) 0.01% of the nominal value of Treasury bills issued through auction shall be paid to the State Bank Trading Department;

c) 0.01% of the actual value of Treasury bills paid shall be paid to the Vietnam Securities Depository Center.

4. Use of the issuance and payment fees for Treasury bills

a) The State Bank may use the fees for organizing the issuance of Treasury bills for the following purposes:

- Expenses for purchasing fixed assets and equipment for the auction of Treasury bills;

- Expenses for regular maintenance and emergency repairs of machinery and equipment;

- Expenses for designing and constructing software programs for the auction of Treasury bills as stipulated in Clause 1 of Article 27 of this Circular;

- Expenses for advertising information about the auction of Treasury bills on mass media;

- Direct expenses for each auction session;

- Expenses for seminars, surveys, and learning experiences related to the auction of Treasury bills;

- Annual conference expenses, interim and final reviews of the organization of auctions;

- Expenditures for special and periodic rewards for members of the Auction Committee, staff serving the auction work, and other relevant agencies. These expenditures shall not exceed 10% of the total issuance and payment fees for Treasury bills received;

- Expenses for meetings of the Treasury bill auction committee, periodic reviews of the auction situation, and discussions on work directions;

- Expenses for office supplies and other expenses serving the auction of Treasury bills.

Chapter 5 ACCOUNTING RECORDS, REPORTS, AND INFORMATION DISCLOSURE

Article 21. Accounting Records

The State Treasury, the State Bank Trading Department, the Vietnam Securities Depository Center, and related organizations shall be responsible for organizing accounting records of income from the issuance and payment of Treasury bills as prescribed in this Circular in accordance with the Law on State Budget, the Law on Accounting, the Law on the State Bank, and related guiding documents.

Article 22. Report on the Results of Issuance

1. For treasury bills issued through auction via the State Bank Trading Center, the Government Treasury shall report to the Ministry of Finance on the results of issuance, including:

a) The volume and conditions, terms of the issued treasury bills;

b) Bidding information of participating members: number of participants, volume, bid interest rates of each member;

c) Issuance results: winning bidder, issuance volume, issuance interest rate, bill selling price.

2. For treasury bills directly issued to the State Bank, the Government Treasury shall report to the Ministry of Finance on the results of the treasury bill issuance within ten (10) working days from the end of the issuance period. The report shall include:

a) The volume and conditions, terms of the treasury bills issued to the State Bank;

b) Issuance results: volume, issuance interest rate of the treasury bills.

3. The form of the report is electronic mail or written document as required by the Ministry of Finance at each period.

Article 23. Report on the Situation of Issuance and Payment of Treasury Bills

1. By the tenth day of each month, the Government Treasury shall report to the Ministry of Finance on the situation of treasury bill issuance and payment of the previous month. In case the tenth day of the month falls on a public holiday, the deadline for submitting the monthly report is the next working day following the holiday. The report shall include:

a) Total volume of treasury bills issued in the month, classified by term and issuance method;

b) Total volume of treasury bills paid in the reporting month;

c) Total volume of treasury bills expected to be paid in the following month.

2. Quarterly, the Vietnam Securities Depository shall report to the Ministry of Finance, and simultaneously send to the Government Treasury on the ownership situation of treasury bills by domestic and foreign investors, the holding situation of treasury bills on the trading account of the State Bank Trading Center according to the model prescribed in Clause 2, Article 43 of Circular No. 111/2015/TT-BTC and any amendments, supplements, or replacements (if any), and the situation of investors using treasury bills to participate in collateral activities in the money market.

3. The form of the report is electronic mail or written document as required by the Ministry of Finance at each period.

Article 24. Reports of Auction Participants

Auction participants shall report to the Ministry of Finance on their participation in the market as stipulated in Article 44 of Circular No. 111/2015/TT-BTC and any amendments, supplements, or replacements (if any).

Article 25. Disclosure of Information

1. The State Bank Trading Center, Government Treasury, and Securities Trading Center shall disclose information about the results of treasury bill auctions conducted via the State Bank Trading Center on the websites of the State Bank, Ministry of Finance, Government Treasury, and Securities Trading Center on the same day of issuance. The disclosed information includes:

a) Bill code;

b) Term;

c) Issue date, maturity date, payment date of the bill;

d) Tendered volume, bid volume, awarded volume, amount of tendered bill payment;

đ) Lowest bid interest rate, highest bid interest rate, issuance interest rate;

e) Number of participants, total number of bidding applications.

2. The State Bank Trading Center, Government Treasury, and Securities Trading Center shall disclose information about additional treasury bill issuance results immediately after the auction session (if any) on the websites of the State Bank, Ministry of Finance, Government Treasury, and Securities Trading Center on the same day of issuance. The disclosed information includes:

a) Bill code;

b) Term;

c) Issue date, maturity date, payment date of the bill;

d) Volume of additional purchase applications, additional issuance volume, amount of additional bill purchase payment;

đ) Issuance interest rate;

e) Number of participants in additional purchase applications.

3. For treasury bills registered with the Vietnam Securities Depository, by December 31st of each year, the Vietnam Securities Depository shall cooperate with the Securities Trading Center to disclose information about the payment date of treasury bills in the following year on the websites of the Securities Trading Center and Vietnam Securities Depository. The disclosed information includes:

a) Code of treasury bills to be paid in the year;

b) Payment date of each treasury bill code;

c) Final registration date of each treasury bill code in the year.

Chapter 6 RESPONSIBILITIES OF RELATED UNITS

Article 26. Responsibilities of the Ministry of Finance

1\. Prescribing the framework for interest rates on treasury bills during each period or each issuance round.

2\. Working with the State Bank to assess market conditions and develop plans for market development in the subsequent period.

3\. Leading the coordination with the State Bank to develop a plan for direct issuance of treasury bills to the State Bank for submission to the Prime Minister for consideration and decision.

Article 27. Responsibilities of the State Bank

1\. Building software, transmission lines, and databases for tendering treasury bills, ensuring synchronization with the electronic bond auction system at the Stock Exchange.

2\. Coordinating with the Ministry of Finance to unify the plan for directly purchasing treasury bills before submitting it to the Prime Minister as stipulated in Article 16 of this Circular.

3\. Directly purchasing treasury bills as stipulated in Article 16 of this Circular.

4\. Coordinating with the Ministry of Finance to assess market conditions and develop plans for market development in the subsequent period.

Article 28. Responsibilities of the National Treasury

1\. Organizing the issuance, payment of treasury bills, and the issuance and payment fees for treasury bills according to this Circular.

2\. Fully implementing reporting and accounting procedures related to the issuance of treasury bills as stipulated in this Circular and relevant laws.

3\. Coordinating with the Vietnam Securities Depository Center, the State Bank Trading Department, and the Stock Exchange to publish information as stipulated in Article 25 of this Circular.

4\. Working with the State Bank Trading Department to assess market conditions and develop plans for market development on a quarterly basis or at any time if necessary.

Article 29. Responsibilities of the State Bank Trading Department

1\. Coordinating with the National Treasury to organize and implement treasury bill auctions, inspecting and supervising the organization of treasury bill issuance auctions, ensuring compliance with the provisions of this Circular.

2\. Guiding the procedures for conducting treasury bill auctions at the State Bank.

3\. Providing information on the results of each treasury bill auction session to the Vietnam Securities Depository Center and the Stock Exchange.

4\. Providing bidding information and auction results for treasury bill issuance to the Ministry of Finance, the National Treasury, as stipulated in this Circular or upon request from the Ministry of Finance and the State Bank.

5\. Retaining relevant documents from each treasury bill issuance auction session for state management purposes as prescribed by law.

6\. Coordinating with the National Treasury, the Vietnam Securities Depository Center, and the Stock Exchange to publish information as stipulated in Article 25 of this Circular.

Article 30. Responsibilities of the Vietnam Securities Depository Center

1\. Implementing registration, custody, and cancellation of registration and custody of treasury bills as stipulated in this Circular.

2\. Ensuring the timely settlement of treasury bills as prescribed in this Circular.

3\. Providing the National Treasury with expected treasury bill codes for initial issuance to inform bidders and announce on the State Bank Trading Department's website as stipulated in this Circular.

4\. Providing necessary data and documents related to regulatory areas as stipulated in this Circular or as requested by the Ministry of Finance (if applicable).

5\. Coordinating with the National Treasury, the State Bank Trading Department, and the Stock Exchange to publish information as stipulated in Article 25 of this Circular.

Article 31. Responsibilities of the Securities Trading Department

1. Implement the listing and delisting of Treasury bills in accordance with the provisions of this Circular.

2. Provide necessary data and documents related to the listing and trading activities of Treasury bills on a weekly basis or upon request from the Ministry of Finance.

3. Cooperate with the State Treasury, the Vietnam Securities Depository Center, and the State Bank of Vietnam's Trading Department to publish information in accordance with Article 25 of this Circular.

Article 32. Responsibilities of the Treasury Bill Auction Committee

1. The Treasury Bill Auction Committee shall be established by the Minister of Finance, including: two representatives from the State Bank of Vietnam's Trading Department, two representatives from the Monetary Policy Department of the State Bank of Vietnam, two representatives from the State Treasury, and two representatives from the Financial Institutions Department of the Ministry of Finance, one secretary being the head of the relevant Business Operations Division of the State Bank of Vietnam's Trading Department.

2. The responsibilities of the Treasury Bill Auction Committee include:

a) Assist the Ministry of Finance and the State Bank of Vietnam in organizing Treasury bill auctions in accordance with this Circular;

b) Monitor the organization of auctions through reporting mechanisms or spot checks;

c) Resolve disputes and complaints arising during Treasury bill auctions through the State Bank of Vietnam;

d) Monitor auction market trends to advise the Ministry of Finance and the State Bank of Vietnam on measures to manage market operations.

Chapter 7 EFFECTIVE DATE

Article 33. Effective Date

1. This Circular takes effect from August 15, 2016.

2. This Circular replaces Circular No. 106/2012/TTLT-BTC-NHNN dated June 28, 2012, issued by the Ministry of Finance and the State Bank of Vietnam, guiding the issuance of Treasury bills through the State Bank of Vietnam.

Article 34. Implementation Organization

The Director of the State Treasury, the Director of the State Bank of Vietnam's Trading Department, and the heads of relevant units, organizations, and individuals are responsible for implementing this Circular.