Circular No. 107/2011/TT-BTC dated July 20, 2011 of the Ministry of Finance amending Point c, Clause 2, Article 1 of the Finance Ministry’s Circular No. 40/2011/TT-BTC of March 22, 2011, amending and supplementing a number of provisions of the Finance Ministry’s Circular No. 108/2007/TT-BTC of September 7, 2007, guiding the financial management mechanism applicable to official development assistance (ODA) programs and projects

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Issuing body:	Ministry of Finance	Effective date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Official number:	107/2011/TT-BTC	Signer:	Truong Chi Trung
Type:	Circular	Expiry date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Issuing date:	20/07/2011	Effect status:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Fields:	Finance - Banking , Investment

SUMMARY

THE AGENCY PRESIDING OVER ODA NEGOTIATION HAS RIGHT TO CHOOSE SERVING BANK

On July 20, 2011, the Ministry of Finance issued the Circular No. 107/2011/TT-BTC amending sub-clause (c), clause 2, Article 1 of the Circular No. 40/2011/TT-BTC dated March 22, 2011 of the Ministry of Finance amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 108/2007/TT-BTC of September 7, 2007, guiding the financial management mechanism applicable to official development assistance (ODA) programs and projects.

Accordingly, the rights on approving and choosing banks for serving in ODA projects are transferred to the agency presiding over the specific international treatment on ODA , instead of belonging to the Ministry of Finance as before.

In particular, on the basis of the list of banks qualified for acting as service banks announced by the State Bank of Vietnam and the Ministry of Finance and the written requests of commercial banks, the agency presiding over the specific international treatment on ODA will consider the approval and choice of banks for ODA projects, and inform the negotiation partners for knowing and implementing.

In case more than one qualified commercial bank request to serve a single ODA project, priority shall be given to the following: banks experienced in serving ODA projects; state-owned commercial banks; and joint-stock commercial banks in which the State holds dominant shares.

It is known that serving bank is a commercial bank which is chosen in the list of commercial banks with full conditions to implement the foreign transactions, payments and supply banking services for ODA projects.

To be defined as a serving bank, that bank has to satisfy following conditions: having financial security percentage applied to all credit institutions in accordance with regulations of the State Bank of Vietnam; having operation area suitable with operation area of ODA projects and committing to comply with regulations of the Government, the Ministry of Finance and regulations of the sponsors on ODA capital management.

These amends and supplements take effect on September 01, 2011.

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Effect status: Known

THE MINISTRY OF FINANCE

Circular No. 107/2011/TT-BTC of July 20, 2011, amending Point c, Clause 2, Article 1 of the Finance Ministry’s Circular No. 40/2011/TT-BTC of March 22, 2011, amending and supplementing a number of provisions of the Finance Ministry’s Circular No. 108/2007/TT-BTC of September 7, 2007, guiding the financial management mechanism applicable to official development assistance (ODA) programs and projects

Pursuant to the Public Dept Management Law;

Pursuant to the Government’s Decree No. 79/2010/ND-CP of July 14, 2010, on public dept management operations;

Pursuant to the Government’s Decree No. 131/2006/ND-CP of November 9, 2006, promulgating the Regulation on management and use of official development assistance (ODA) sources;

Pursuant to the Government’s Decree No. 60/2003/ND-CP of June 6, 2003, detailing and guiding the implementation of the State Budget Law;

Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

In furtherance of the Prime Minister’s opinions in the Government Office’s Official Letter No. 3497/VPCP-QHQT of May 30, 2011, amending contents of the Finance Minister’s Circular No. 40/2011/TT-BTC, guiding the financial management mechanism applicable to official development assistance (ODA) programs and projects;

The Ministry of Finance amends Point c, Clause 2, Article 1 of the Finance Ministry’s Circular No. 40/2011/TT-BTC of March 22, 2011, amending and supplementing a number of provisions of the Finance Ministry’s Circular No. 108/2007/TT-BTC of September 7, 2007, guiding the financial management mechanism applicable to official development assistance (ODA) programs and projects, as follows:

Article 1. To amend Point c, Clause 2, Article 1 of Circular No. 40/2011/TT-BTC as follows:

“c/ Selection of service banks:

- On the basis of the list of banks qualified for acting as service banks announced by the State Bank of Vietnam in coordination with the Ministry of Finance and the written requests of commercial banks, agencies assuming the prime responsibility for negotiation of ODA-related international treaties shall consider and approve the selection of service banks for ODA projects, and inform to partners for comprehension and implementation.

- In case more than one qualified commercial bank request to serve a single ODA project, priority shall be given to the following: banks experienced in serving ODA projects; state-owned commercial banks; and joint-stock commercial banks in which the State holds dominant shares.”

Article 2. Effect

1. This Circular takes effect on September 1, 2011.

2. Any problems arising in the course of implementation should be promptly reported to the Ministry of Finance for guidance and coordinated settlement.-

For the Minister of Finance
Deputy Minister
TRUONG CHI TRUNG

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