Decree No. 93/2018/ND-CP on the management of debt of local authorities

DECREE

Regulations on local government debt management

WHEREAS Pursuant to the Law on Thrift and Combating Wastefulness dated November 26, 2013;

Pursuant to the Law on Local Administration Organization dated June 19, 2015;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Public Debt Management Law dated November 23, 2017;

Pursuant to the Law on Public Investment dated June 18, 2014;

At the proposal of the Minister of Finance;

The Government issues this Decree to regulate local government debt management.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

This Decree regulates local government debt management, including principles of management, forms and conditions for borrowing by local governments; five-year borrowing and repayment plans; three-year debt management programs; annual borrowing and repayment plans; implementation of borrowing and repayment; accounting, auditing, reporting, and disclosure of debt information.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

This Decree applies to People's Councils and People's Committees of provinces and centrally governed cities; the Ministry of Finance and relevant agencies, organizations, and individuals involved in borrowing, managing, using borrowed funds, and repaying debts of local governments.

Article 2. Principles of local government debt management

1. Provincial-level local governments are permitted to borrow to cover provincial budget deficits and to repay principal amounts of local government loans.

2. Borrowing by provincial-level local governments must comply with the provisions of the State Budget Law, the Public Debt Management Law, and the following principles:

b) Annual borrowing shall be within the total amount approved by the National Assembly and assigned by the Prime Minister to each locality;

c) Borrowing to cover budget deficits must only be used for development investment to implement programs and projects in the medium-term public investment plan decided by the provincial People's Council;

d) All borrowings must be implemented and recorded in Vietnamese Dong, except for borrowings from official development assistance (ODA) sources and concessional foreign loans of the Government as stipulated at point b, Clause 1, Article 3 of this Decree;

đ) Local governments may not directly borrow from abroad.

2. Local governments may not guarantee loans or bond issuance for organizations or individuals within or outside the country.

3. Local budgets or other lawful sources must prioritize allocation to fully and timely repay debts as prescribed in Articles 11 and 12 of this Decree.

4. Local government debts must be accounted for accurately, properly, transparently, and publicly in debt management and linked to the responsibility of relevant agencies and individuals in local government debt management.

Article 3. Forms and conditions for local government borrowing

1. Forms of local government borrowing:

a) Issuing local government bonds in the domestic capital market according to this Decree;

b) Re-lending from official development assistance (ODA) sources and concessional foreign loans of the Government as stipulated in Chapter V of the Public Debt Management Law, Government Decrees on re-lending ODA funds and concessional foreign loans, and this Decree;

2. Conditions for local government borrowing are regulated in Article 52 of the Public Debt Management Law and Government Decree No. 163/2016/NĐ-CP.

FIVE-YEAR BORROWING AND REPAYMENT PLAN; THREE-YEAR DEBT MANAGEMENT PROGRAM AND ANNUAL BORROWING AND REPAYMENT PLAN
OF LOCAL GOVERNMENTS
OF LOCAL GOVERNMENTS

Article 4. Five-year borrowing and repayment plan of local authorities

1. The five-year borrowing and repayment plan of local authorities is a component of the five-year provincial financial plan of centrally governed cities and provinces, established under the direction of the Department of Finance, reported to the provincial People's Committee, submitted to the same-level People's Council for comments before being sent to the Ministry of Finance for consolidation.

2. Basis for establishing the five-year borrowing and repayment plan of local authorities:

a) The situation in implementing the five-year socio-economic development plan, the five-year financial plan, the medium-term public investment plan, and the five-year borrowing and repayment plan of the previous period of the locality;

b) Objectives, targets, and orientations for socio-economic development, state finance and budget in the National Strategy, the five-year socio-economic development plan; strategies on finance, public debt, tax system reform; and objectives, targets, and orientations for socio-economic development during the five-year planning period of the locality; the overall socio-economic development master plan that has been approved by the locality;

c) Forecasting economic and social conditions that affect the ability to mobilize and the need to use state finance and budget resources of the locality during the five-year planning period;

d) Legal provisions on state finance and budget, including the mechanism for revenue distribution and expenditure responsibilities between the central budget and local budgets, among different levels of local authorities; directions for amendments, supplements, and new promulgations within the five-year planning period;

đ) Guidelines from the Prime Minister and the provincial People's Committee on developing the five-year socio-economic development plan and the five-year financial plan.

3. Requirements for establishing the five-year borrowing and repayment plan:

a) Consistent with the goals, tasks, and solutions set out in the National Strategy on socio-economic development; strategies on finance, public debt, tax system reform; objectives, targets, and orientations for socio-economic development during the five-year planning period at the national and local levels;

b) Consistent with forecasts of economic and social conditions, the ability to balance state budget revenues, borrowing and repayment, national financial safety limits during the five-year planning period; consistent with principles of balancing, managing, and decentralizing revenue sources and expenditure responsibilities of the state budget, local regulations, principles of managing public debt safely, and permitted local debt balances;

c) Prioritizing state budget allocation and arranging loans to implement programs and projects in specific periods;

d) Transparent, efficient, and open.

4. Content of establishing the five-year borrowing and repayment plan of local authorities:

a) Evaluation of the implementation of the previous five-year borrowing and repayment plan, achievements, limitations, causes, and lessons learned;

b) Basis and requirements for establishing the five-year borrowing and repayment plan of the locality;

c) Indicators for establishing the five-year borrowing and repayment plan of local authorities, including: Borrowing limit, local authority debt balance (debt compared to the borrowing limit); planned borrowing and repayment;

d) Forecasting risks affecting management indicators for local authority debt;

đ) Policy and management measures to ensure the safety and sustainability of local authority debt.

5. Procedures for establishing and deciding on the five-year borrowing and repayment plan are carried out according to the procedures for establishing and deciding on the five-year provincial financial plan as stipulated in Article 9 of Decree No. 45/2017/ND-CP dated April 21, 2017 of the Government detailing the establishment of the five-year financial plan and the three-year financial and state budget plan (hereinafter referred to as Decree No. 45/2017/ND-CP of the Government).gDecree No. 45/2017/ND-CP of the Government.

6. Adjustments to the five-year borrowing and repayment plan of local authorities shall be implemented in accordance with Article 10 and Clause 5 of Article 11 of Decree No. 45/2017/ND-CP of the Government.

1. The three-year debt management program of local authorities is a component of the three-year provincial state financial-budget plan, established under the leadership of the Department of Finance, reported to the provincial People's Committee for comments from the Standing Committee of the Provincial People's Council before submission to the Ministry of Finance for consolidation into the national public debt management program for three years, to be submitted to the Prime Minister for decision.

2. Bases for establishing the three-year debt management program of local authorities:

a) The situation in implementing the socio-economic development plan, the state budget estimate, and borrowing and repayment situations of the locality in the current year;

b) The national strategy on socio-economic development; strategies on finance, public debt, tax system reform; five-year national and local plans on socio-economic development, medium-term public investment plans (in case the three-year planning period falls within the five-year plan), or five-year socio-economic development goals, medium-term public investment plans of the locality during the subsequent phase (in case the three-year planning period includes a year between two five-year periods);

c) Projections of key socio-economic indicators of centrally-administered cities and provinces during the three-year planning period; projected expenditures in areas determined in the previously established three-year state financial-budget plan of the locality;

d) Current regulations and directions for amending, supplementing, and promulgating new laws on state financial-budget management issued by central and local authorities during the three-year planning period;

đ) Directives of the Prime Minister, guidelines of the Ministry of Finance and the Ministry of Planning and Investment, and directives of the provincial People's Committee on establishing the three-year state financial-budget plan;

3. Requirements for establishing the three-year debt management program of local authorities:

a) Consistent with the actual implementation of five-year and annual socio-economic development goals and financial forecasts during the three-year planning period;

b) Ensuring principles of balance, management, budget decentralization, and public debt management as stipulated in the State Budget Law and the Public Debt Management Law;

c) Established in a rolling manner for the three-year period, with the first year serving as a reference for preparing, submitting, and deciding on the annual state budget estimate, borrowing, and repayment;

4. Content of the three-year debt management program of local authorities:

a) Evaluation of the situation in managing debt by local authorities in the current year;

b) Basis and requirements for establishing the annual borrowing and repayment plan of the locality;

c) Projected borrowing limit and outstanding debt of local authorities; projected borrowing, repayment, and detailed specifics for the next two years during the planning year;

d) Projected borrowing schemes, financing costs; repayment obligations and projected sources of repayment; risks that may arise during the planning year and detailed specifics for each of the next two years;

đ) Main solutions to ensure safe and sustainable debt management by local authorities;

5. The procedure for establishing the three-year debt management program shall be carried out according to the procedure for establishing the three-year state financial-budget plan as prescribed in Articles 16 and 17 of Decree No. 45/2017/NĐ-CP of the Government.

Article 6. Annual Borrowing and Repayment Plan

1. Annually, along with the time for preparing the state budget estimate, the Department of Finance shall take the lead in formulating the borrowing and repayment plan of the local government, report to the provincial People's Committee, submit to the same-level People's Council for comments before sending to the Ministry of Finance for consolidation. In cases where the reporting period for the five-year borrowing and repayment plan of the local government to the Ministry of Finance does not coincide with the session of the provincial People's Council, the provincial People's Committee shall report to the Standing Body of the same-level People's Council for comments before sending to the Ministry of Finance for consolidation, and report to the People's Council at the nearest session.

2. Basis for Formulating the Annual Borrowing and Repayment Plan:

a) Tasks for economic and social development and ensuring national defense and security at the local level;

b) The division of revenue sources, expenditure tasks of the state budget, and the percentage (%) of distribution for shared revenues and the supplementary balance adjustment amount from the upper-level budget to the lower-level budget, the remaining debt, the maximum allowable borrowing limit, and the obligation to repay debts according to commitments;

c) Legal documents of various levels and competent state agencies guiding the formulation of plans for economic and social development and the state budget estimate, borrowing and repayment for the following year;

d) The implementation situation of the state budget, borrowing and repayment in the previous year.

3. Requirements for Formulating the Annual Borrowing and Repayment Plan:

a) The borrowing and repayment plan must be compiled according to each loan item and repayment item in accordance with the prescribed format and deadlines by the competent state agency;

b) The borrowing and repayment plan is based on ensuring that loans have been contracted and commitments to repay debts due in the budget estimate year have been made;

c) The borrowing estimate to offset the local budget deficit must be based on the local budget balance, the ability of each borrowing source, the ability to repay debt, and within the debt limits specified for each locality, and within the safe public debt limit as decided by the National Assembly.

4. Content of Formulating the Annual Borrowing and Repayment Plan of the Local Government:

a) Evaluation of the situation in managing debt by the local government in the current year;

b) Forecast of outstanding debt and remaining allowable borrowing limit of the local government in the budget estimate year;

c) Forecast of borrowing needs, sources of borrowing, borrowing schemes, financing costs; borrowing to offset the budget deficit, borrowing to repay principal; obligations to repay debt and forecast of repayment sources; potential risks that may arise in the planning year;

d) Main solutions to implement the program to ensure the safety and sustainability of local government debt.

6. In cases where the annual borrowing and repayment plan includes borrowing from issuing local government bonds, the provincial People's Committee shall draft a preliminary project for issuing local government bonds to be submitted to the provincial People's Council for approval together with the approval of the annual borrowing and repayment plan and the local budget estimate. The preliminary project for issuing local government bonds includes the maximum amount to be raised, the purpose of issuance, forecasted repayment sources, and forecasted issuance timing.

7. The provincial People's Council shall examine and approve the annual borrowing and repayment plan together with the annual local budget estimate, including: The total borrowing amount of the local budget, which is divided into borrowing to offset the deficit and borrowing to repay principal; forms of borrowing, clearly stating the policy of issuing local government bonds according to the project drafted by the provincial People's Committee (if applicable); the plan for repaying principal, interest, and fees in the year for the local budget.

Chapter III

IMPLEMENTATION OF BORROWING AND REPAYMENT BY LOCAL GOVERNMENTS

Section 1

IMPLEMENTATION OF BORROWING BY LOCAL GOVERNMENTS

Article 7. Implementation of annual borrowing and repayment plans

1. Based on the local budget estimate, the total annual borrowing amount and the policy for issuing local government bonds decided by the Provincial People's Council, the Department of Finance shall take the lead and coordinate with relevant agencies to develop the local government's borrowing plan, including: the amount borrowed, the time and point of borrowing, sources of borrowing, borrowing methods, and report to the provincial People's Committee for consideration and decision.

For the borrowing plan involving loans refinanced from ODA funds and concessional foreign loans of the Government, the development of the borrowing plan must be consistent with the total amount assigned by the Prime Minister, the Provincial People's Council's decision, and the disbursement capacity of programs and projects according to signed loan agreements.

2. Based on the local budget estimate for principal repayments and sources of principal repayments; interest, fees, and costs of borrowings decided by the Provincial People's Council, the Department of Finance shall take the lead and coordinate with relevant agencies to develop the local government's repayment plan for principal, interest, fees, and borrowing costs, including: the amount of principal repayment and sources of principal repayment, interest, fees, and borrowing costs of the local government; the repayment time, and report to the provincial People's Committee for consideration and decision.

Article 8. Organization of Borrowing through Issuance of Local Government Bonds

c) Anticipated conditions and terms of local government bonds, including:

- Issuance volume;

- Bond term ensuring one year or more;

- Face value of the bond being one hundred thousand (100,000) VND or multiples thereof;

- Currency of issuance being Vietnamese Dong;

d) Anticipated time and method of issuing local government bonds;

đ) The situation of borrowing and repaying principal and interest from all sources of the provincial budget in the three consecutive fiscal years prior to the year of planned bond issuance;

e) The borrowing limit for the year of the local budget, the situation of repaying principal and interest of borrowings in the year, outstanding debt at the time of developing the Plan, and anticipated post-borrowing debt after issuing bonds;

g) Arrangement plan for sources to pay off principal and interest of bonds when due;

h) Anticipated information to be provided to investors before the bond issuance period;

i) Commitment of the issuer to the bondholders;

a) The issuance plan for local government bonds as stipulated in Clause 1 of this Article;

b) Resolution of the People's Council deciding the local budget estimate and the borrowing and repayment plan for the year of planned issuance; the medium-term public investment plan of the locality;

c) Annual borrowing and repayment plans of the local government decided by the provincial People's Committee as stipulated in Article 7 of this Decree;

d) Other relevant documents.

4. Organization of Issuing Local Government Bonds:

a) At least five working days before the date of organizing the bond auction or at least ten working days before the date of issuing bonds under the guaranteed issuance method, the provincial People's Committee has the responsibility to publish basic information about the bond issuance period on the website of the provincial People's Committee or of the organization authorized to carry out bond issuance operations or of the organization conducting the bond auction. The content of the published information is regulated in Section 1 of Appendix I issued together with this Decree;

b) Issuance methods:

- Auction issuance method: Local government bonds are issued through an auction at the organization implementing the government securities auction. The principles of organizing the auction, the form of the auction, the participants in the auction, the procedures and processes of organizing the auction, the method of determining the auction results, and the payment method for purchasing bonds are applied according to the regulations on issuing government securities through auctions;

- Guaranteed issuance method: The provincial People's Committee or the organization authorized to negotiate directly with the guarantor organization to finalize the volume, conditions, and terms of the bonds (term, issuance interest rate, issuance date, payment date, bond selling price), guarantee fees, and other related matters. The process of issuing local government bonds under the guaranteed issuance method follows the process of guaranteeing the issuance of government securities.

c) Issuance interest rate:

- Not later than ten working days before the date of organizing the issuance of local government bonds, the provincial People's Committee shall send a request to the Ministry of Finance to announce the interest rate range for bond issuance, including the expected issuance time; the expected volume, term, form, and method of issuance; the expected demand from investors regarding the volume, term, and interest rate of bonds.

- Not later than seven working days from the date of receiving the announcement of the bond issuance plan, the Ministry of Finance shall announce the interest rate range for bond issuance for the provincial People's Committee to organize the issuance of bonds.

- Based on the interest rate range announced by the Ministry of Finance and the market conditions at the time of issuance, the provincial People's Committee shall determine the interest rate for bond issuance.

d) Not later than seven working days after the end of the bond issuance period, the provincial People's Committee shall be responsible for disclosing information about the issuance results, including the volume, term, and interest rate of issued bonds, on the website of the provincial People's Committee or of the organization authorized to carry out the bond issuance business, or of the organization conducting the auction.

5. Registration, custody, listing, and trading: Local government bonds shall be registered and custodied at the Vietnam Securities Depository and listed and traded at the Stock Exchange. The process of registration, custody, listing, and trading of local government bonds shall follow the procedures for registering, custodying, listing, and trading of government debt instruments.

6. Repurchasing bonds:

a) The provincial People's Committee may repurchase bonds ahead of schedule to reduce debt obligations or to restructure debt according to a plan reviewed and approved by the Provincial People's Council.

b) The repurchase of bonds must ensure market principles, transparency, and fairness.

c) The plan for repurchasing local government bonds shall include the following basic contents: Purpose of repurchase; conditions and terms of the bonds to be repurchased; proposed repurchase methods; expected timing for organizing the repurchase period; list of bondholders expected to be repurchased; anticipated borrowing limit of the provincial budget after implementing the repurchase.

d) The source for repurchasing and the costs of organizing the repurchase of local government bonds shall be borne by the local budget in accordance with the State Budget Law, the Public Debt Management Law, and guiding documents.

đ) The process of organizing the repurchase of local government bonds shall be carried out in accordance with the guidelines of the Minister of Finance.

e) Repurchase interest rate:

- Not later than ten working days before the date of organizing the repurchase, the provincial People's Committee shall send a request to the Ministry of Finance to announce the repurchase interest rate range, including the expected repurchase time, expected volume, term, and repurchase method of bonds.

- Not later than seven working days from the date of receiving the announcement of the repurchase plan, the Ministry of Finance shall announce the repurchase interest rate range for the provincial People's Committee to organize the repurchase of bonds.

- Based on the repurchase interest rate range announced by the Ministry of Finance and the market conditions at the time of repurchase, the provincial People's Committee shall determine the repurchase interest rate for bonds.

g) Not later than seven working days after the end of the repurchase period, the provincial People's Committee shall disclose information about the repurchase period, including the code, volume of bonds repurchased, and repurchase interest rate on the website of the provincial People's Committee or at the organization conducting the auction for repurchasing bonds.

7. Bond swap:

a) The provincial People's Committee may swap bonds to restructure debt according to a swap plan reviewed and approved by the Provincial People's Council.

b) The swap must ensure market principles, transparency, and fairness. The volume of newly issued bonds for swapping existing circulating bonds must be within the annual borrowing limit of the local government.

c) The plan for swapping local government bonds shall include the following basic contents: Purpose of swap; conditions and terms of the bonds being swapped out and swapped in (specific expectations regarding the issuance of new bonds or additional issuance); swap method; list of bondholders whose bonds are being swapped out at the time of developing the plan; expected timing for organizing the bond swap period; anticipated borrowing limit of the provincial budget after implementing the bond swap.

đ) The costs of organizing the swap of local government bonds shall be borne by the local budget in accordance with the State Budget Law, the Public Debt Management Law, and guiding documents.

e) The process of organizing the swap of local government bonds shall be carried out in accordance with the guidelines of the Minister of Finance.

g) Discount rate of bonds:

- Not later than ten working days before the date of organizing the bond swap, the provincial People's Committee shall send a request to the Ministry of Finance to announce the discount rate range to determine the price of bonds being swapped out and the price of bonds being swapped in during each bond swap period. The request of the provincial People's Committee shall include the expected swap time, expected volume, and term of bonds being swapped out and swapped in.

- Not later than seven working days from the date of receiving the announcement of the bond swap plan, the Ministry of Finance shall announce the discount rate range for the provincial People's Committee to organize the bond swap.

- Based on the discount rate range announced by the Ministry of Finance and the market conditions at the time of swap, the provincial People's Committee shall determine the discount rate for bonds to determine the price of bonds being swapped out and the price of bonds being swapped in.

h) Not later than seven working days after the completion of the bond swap period, the provincial People's Committee shall publish information on the results of the bond swap, including the code, quantity, swapped bonds, and the swap interest rate on the provincial People's Committee's website.

Article 9. Borrowing from ODA sources and concessional foreign loans

Based on the loan agreement between the Ministry of Finance and the provincial People's Committee for each program or project; the amount of borrowing assigned by the Prime Minister in the annual local budget estimate; the form of withdrawing funds and implementing disbursement of ODA and concessional foreign loans within the allocated budget estimate.

Article 10. Borrowing from other domestic sources

1. Borrowing from the state treasury:

a) The provincial People's Committee may borrow from the state treasury to cover budget deficits and repay principal as stipulated by the State Budget Law and must pay the cost of using the state treasury;

b) Based on the local budget estimate, the total annual borrowing limit decided by the National Assembly and the Provincial People's Council, the provincial People's Committee shall submit a document along with relevant files to the Ministry of Finance for consideration and decision;

c) The term of borrowing from the state treasury shall be implemented in accordance with the provisions of Government Decree No. 24/2016/NĐ-CP dated April 5, 2016 on the management regulations of the state treasury;

d) The Ministry of Finance shall specify the details of borrowing from the state treasury by local authorities.

a) Only localities that have been prescribed special fiscal and budgetary mechanisms by the Government, which allow borrowing from the provincial financial reserve fund, are permitted to borrow from this source;

b) Based on point a, Clause 2 of this Article, the local budget estimate, the total annual borrowing limit decided by the Provincial People's Council, the provincial People's Committee decides to borrow, specifying the borrowing amount and term;

The borrowing amount from the provincial financial reserve fund must be within the total borrowing limit allowed. This borrowing does not require payment of interest but must be repaid within the specified term.

3. Borrowing from domestic financial organizations and credit institutions:

a) Based on the local budget estimate, the total annual borrowing limit decided by the Provincial People's Council, the Department of Finance reports to the provincial People's Committee the plan to borrow funds from financial organizations and credit institutions in accordance with the regulations;

b) The conditions of the loan shall be agreed upon by the provincial People's Committee or the authorized agency or unit and the lending organization, but the loan must be in Vietnamese Dong, the loan interest rate and other related costs must be consistent with the general market interest rate at the time of borrowing, and the loan term must be at least three years;

c) The provincial People's Committee or the authorized agency or unit shall negotiate the procedures, documentation, and signing of the loan agreement with the lending organization.

Section 2

LOCAL AUTHORITY DEBT REPAYMENT

Article 11. Payment of interest, fees, and other costs related to local authority loans

2. In cases where there is a need or occurrence of prepayment of interest, fees, and other costs related to local authority loans exceeding the decided budget estimate, the Department of Finance shall compile and propose a handling solution, report to the provincial People's Committee for decision within its authority or submit to the Standing Committee of the Provincial People's Council or the Provincial People's Council for adjustment of the local budget estimate in accordance with the State Budget Law.

Article 12. Repayment of principal of local government loans

a) The amount borrowed to repay the principal, decided annually by the National Assembly and the Provincial People's Council;

b) Surplus of the provincial state budget;

c) The surplus of the provincial state budget as prescribed in Clause 1, Article 72 of the State Budget Law;

d) Increased revenue and reduced expenditure compared to the budget estimate during the process of implementing the state budget as prescribed in Clause 2, Article 59 of the State Budget Law.

3. In cases where there is a need or occurrence of prepayment of the principal of local government loans exceeding the anticipated sources, the Department of Finance shall compile and propose solutions, report to the provincial People's Committee for consideration and decision within its authority, or submit to the Standing Committee of the Provincial People's Council or the Provincial People's Council at the same level to adjust the local state budget estimate in accordance with the State Budget Law.

4. For expenditures to repay the principal from borrowed funds, it may be implemented through the method of exchanging all or part of the development investment capital of the local state budget as follows:

a) Before allocating the development investment budget estimate, the corresponding amount expected to be borrowed to repay the principal must be deducted;

Chapter IV

ACCOUNTING, AUDITING, REPORTING AND PUBLIC DISCLOSURE OF DEBT
OF LOCAL GOVERNMENTS

Article 13. Accounting of Local Governments

1. All borrowings, repayments, and outstanding debts of local governments must be accounted for in accordance with the Accounting Law and the State Budget Law.

Article 14. Audit of Local Government Debt

The audit of loan reports, repayments, and outstanding debts of local governments is part of the audit of the final settlement report of the local state budget conducted by the State Audit Agency before submitting to the Provincial People's Council for approval.

Article 15. Reporting of Local Government Debt

1. Monthly, the Department of Finance shall report to the provincial People's Committee and relevant agencies on the implementation of the annual borrowing and repayment plan of the local government along with the report on the implementation of the local state budget estimate.

3. Within seven working days from the end of the bond issuance period, the provincial People's Committee shall report to the Ministry of Finance in detail about the results of the issuance according to the form specified in Section 2 of Appendix I of this Decree. Within thirty working days after the end of the fiscal year, the provincial People's Committee shall report to the Ministry of Finance on the situation of debt issuance, interest repayment, and principal repayment of local government bonds according to the form prescribed in Section 3 of Appendix I of this Decree.

4. Within seven working days after the end of the bond buyback or exchange period, the provincial People's Committee shall report to the Ministry of Finance on the implementation results according to the form prescribed in Section 4 of Appendix I of this Decree.

5. The provincial People's Committee shall regularly report every six months to the Ministry of Finance on the implementation of the annual borrowing and repayment plan of the local government according to Appendices II and III issued together with this Decree.

Article 16. Disclosure of Information on Local Government Debt

1. Annually, the Chairman of the Provincial People's Committee shall disclose information on local government debt.

2. Indicators for borrowing and repayment of local government debt to be disclosed include:

a) Year-end debt balance (detailed by each source of borrowing);

b) Borrowing during the year (detailed borrowing for principal repayment and to cover budget deficits);

c) Repayment during the year (payment of interest, fees, and other costs related to local government borrowings; payment of principal);

d) Year-end projected debt balance (detailed by each source of borrowing).

3. The content of the disclosure includes: data and explanations of the basis of the data according to the borrowing and repayment indicators prescribed in Clause 2 of this Article.

4. Time of disclosure of information:

a) For the plan for borrowing and repayment of local government debt, it shall be disclosed together with the provincial budget estimate approved by the Provincial People's Council, no later than 30 days from the date of issuance of the document;

b) For the results of implementing the plan for borrowing and repayment of local government debt, it shall be disclosed together with the final settlement of the provincial budget approved by the Provincial People's Council, no later than 30 days from the date of issuance of the document.

5. Form of disclosure: Posting on the electronic information website of the Provincial People's Committee or the Department of Finance.

Chapter V

TASKS, POWERS AND RESPONSIBILITIES OF PROVINCIAL AUTHORITIES IN MANAGING LOCAL GOVERNMENT DEBT
PROVINCIAL MANAGEMENT OF DEBT OF LOCAL GOVERNMENTS

Article 17. Tasks, powers of the Provincial People's Council and the Provincial People's Committee, centrally governed cities

1. The tasks and powers of the Provincial People's Council shall be implemented in accordance with the provisions of Article 16 of the Law on Public Debt Management;

2. The tasks and powers of the Provincial People's Committee shall be implemented in accordance with the provisions of Article 17 of the Law on Public Debt Management.

Article 18. Tasks and powers of specialized agencies under the Provincial People's Committee

1. The Department of Finance is the lead agency assisting the Provincial People's Committee in uniformly managing local government debt and has the following tasks:

a) Drafting the five-year and annual borrowing and repayment plans of the local government to report to the Provincial People's Committee for submission to the Provincial People's Council for consideration and decision;

c) Drafting the bond issuance plan and other domestic borrowings of the local government to report to the Provincial People's Committee for submission to the competent authority for consideration and decision;

d) Based on the provincial budget expenditure estimate and local financial resources decided by the competent authority, implement the payment of principal, interest, fees, and other costs related to local government borrowings;

2. Other specialized agencies under the Provincial People's Committee, based on their assigned functions and tasks, shall cooperate with the Department of Finance to perform the task of managing local government debt from the stage of proposing borrowings, implementing borrowings, managing and using borrowings in accordance with this Decree and relevant laws.

Chapter VI

IMPLEMENTING PROVISIONS

Article 19. Effective Date

This Decree takes effect from July 1, 2018.

Article 20. Transitional Provisions;

Loans concluded before this Decree takes effect shall be implemented in accordance with the laws in force at the time of loan conclusion.

Article 21. Responsibility for Implementation

The Minister, Heads of ministerial-level agencies, Heads of government agencies under central administration, other central agencies, and Chairpersons of provincial People's Committees directly under the Central Government are responsible for implementing this Decree./.

MODEL OF ANNOUNCEMENT OF THE RESULTS OF BOND ISSUANCE, (Attached on 30

DECISION ON THE RESULTS OF BOND ISSUANCE, LOCAL ADMINISTRATION 05 Decision No. 93/2018/NĐ-CP

of 2018 by the Government)

Section 1. Content of Information Announced Before Bond Issuance

1. Issuer of Bonds.

2. Purpose of Bond Issuance.

3. Conditions and Terms of Bonds (including: Volume; Term; Face Value; Principal and Interest Payment Methods; Buyback and Exchange Terms if applicable).

4. Time and Method of Bond Issuance.

5. Expected Sources to Repay Principal and Interest of Bonds Upon Maturity.

6. List of Projects in Environmental Protection Sector Expected to Utilize Issued Bond Proceeds in Case of Green Local Government Bond Issuance.

7. Situation of Capital Raising and Principal and Interest Repayment of Provincial Budget in the Three Consecutive Fiscal Years Prior to the Issuance Year from All Sources, Including Capital Raising Through Local Government Bond Issuance (if any); Provincial Budget Debt from All Sources at the Time of Expected Bond Issuance.

8. Data on Total Revenue and Expenditure of Provincial Budget Already Finalized or Estimated Implementation of Provincial Budget Revenue and Expenditure (if not yet finalized and approved by the competent authority) of the Three Consecutive Fiscal Years Prior to the Issuance Year, including Total Balanced Budget Revenue of Provincial Budget, Total Balanced Budget Expenditure of Provincial Budget (including total regular expenditure and total basic construction investment expenditure).

9. Basic Data on Local Government Budget Revenue and Expenditure Plan Already Approved by the Provincial People's Council for the Expected Issuance Year, including Total Balanced Budget Revenue of Local Government, Total Balanced Budget Expenditure of Local Government, Total Borrowing Amount for the Year (including borrowing to offset local government budget deficit and borrowing to repay local government budget principal).

Section 2. Model Report on Results of Each Series of Local Government Bond Issuance

PROVINCE PEOPLE'S COMMITTEE/ ^{SOCIALIST REPUBLIC OF VIETNAM}?^INDEPENDENCE FREEDOM

Number:...

HAPPINESS
Regarding Reporting on Bond Issuance Results

local government bonds

date. month. year

To: Ministry of Finance.

Based on the regulations, the provincial people's committee reports on the results of bond issuance as follows:

1. Plan and Results of Bond Issuance

ON BEHALF OF THE PROVINCE PEOPLE'S COMMITTEE/
CITY PEOPLE'S COMMITTEE
(Signature, Full Name, and Stamp)

Place of Receipt: As above - To be filed:...

Section 3. Quarterly Report on the Situation of Issuance and Repayment of Principal and Interest of Local Government Bonds

PROVINCE PEOPLE'S COMMITTEE/ SOCIALIST REPUBLIC OF VIET NAM

INDEPENDENCE - FREEDOM - HAPPINESS

, ^{CLASS MONOCOTYLEDON}$^:No. 7’ „ X Date Month Year

Subject: Quarterly Report on the Situation of Issuance and Repayment of Principal and Interest of Local Government Bonds

date. month. year

Pursuant to the regulations, the provincial/municipal people's committee reports on the situation of issuance and repayment of principal and interest of local government bonds as follows:

The opening balance of local government bonds at the beginning of the period was ... billion VND.

1. The amount of local government bonds issued during the year was ...

2. Term 2 years, volume ... billion VND.

• Term 3 years, volume ... billion VND.

• Term 5 years, volume ... billion VND.

• Repayment situation during the period:

1. Repayment of principal: ... billion VND (repayment date).

• Repayment of interest: ... billion VND (repayment date).

• The closing balance of local government bonds at the end of the period was ... billion VND.

1. - As above - To be filed: ...

Place of Receipt: Section 4. Report on Results of Purchasing and Swapping Local Government Bonds

PROVINCE PEOPLE'S COMMITTEE/ SOCIALIST REPUBLIC OF VIET NAM

CITY INDEPENDENCE - FREEDOM - HAPPINESS

No.

Date Month Year Subject:

Report on Results of Purchasing and Swapping Local Government Bonds Pursuant to the regulations, the provincial/municipal people's committee reports on the results of purchasing and swapping local government bonds as follows:
Plan for purchasing and swapping bonds

date. month. year

Conditions and terms of the bonds to be purchased or swapped.

Estimated borrowing limit of the provincial budget after implementing bond purchases or swaps.

1. Results of purchasing and swapping bonds

• Code and quantity of bonds purchased or code and quantity of bonds swapped; code and quantity of bonds swapped.

• Price of bonds purchased or price of bonds swapped, corresponding to each bond code.

1. Interest rate for bond purchases or swaps, corresponding to each bond code.

• Balance of local government bonds after implementing bond purchases or swaps.

• Borrowing limit of the provincial budget after implementing bond purchases or swaps.

• - As above - To be filed: ...

• (Annexed to Decree No.

• 30 June 2018 of the Government)

Place of Receipt:

PROVINCE PEOPLE'S COMMITTEE, CITY ...

Opening debt (January 1)

Borrowings during the period

Debt repayments during the year

Note:

LOCAL GOVERNMENT DEBT REPORT FOR THE FIRST SIX MONTHS OF THE YEAR

(Template for provincial/municipal people's committees under central authority to report to the Ministry of Finance before the 15th day of each month)

Unit: Million VND

(Annexed to Decree No.

30 June 2018 of the Government) 7 PROVINCE PEOPLE'S COMMITTEE, CITY ... LOCAL GOVERNMENT DEBT REPORT FOR THE YEAR

Opening debt at the beginning of the year (January 1)

Borrowings during the year

Closing debt at the end of the year (December 31)

Project A

Including re-lending of foreign loans entrusted through the Vietnam Development Bank.

Unit: Million VND

Noted by:

1. Excluding loans relending foreign loans entrusted through the Vietnam Development Bank.

2. Details according to lending organizations.

3. Including loans relending foreign loans entrusted through the Vietnam Development Bank.