Circular No. 83/2013/TT-BTC guiding the implementation of the Decision No. 64/QD-TTg dated January 07, 2013 of the Prime Minister on the charge rate that equitized credit institutions shall be enjoyed when collecting the off balance sheet debt items retained

THE MINISTRY OF FINANCE

Circular No.83/2013/TT-BTCguiding the implementation of the Decision No. 64/QD-TTg dated January 07, 2013 of the Prime Minister on the charge rate that equitized credit institutions shall be enjoyed when collecting the off balance sheet debt items retained

Pursuant to the Law No. 47/2010/QH12 dated June 29, 2010 of the National Assembly on Credit Institutions;

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

Pursuant to the Decision No. 59/2011/ND-CP dated July 18, 2011 of the Government on transformation of enterprises with 100% State capital into joint stock companies;

Pursuant to the Decision No. 64/QD-TTg dated January 07, 2013 of the Prime Minister on the charge rate that equitized credit institutions shall be enjoyed when revoking the off balance sheet debt items retained;

At the proposal of Director of Banking and Financial Institutions Department;

The Minister of Finance promulgates the Circular guiding the implementation of the Decision No. 64/QD-TTg dated January 07, 2013 of the Prime Minister on the charge rate that equitized credit institutions shall be enjoyed when collecting the off balance sheet debt items retained as follows:

Article 1. Subject of application

Subject of application under this Circular includes: Joint stock commercial Bank for Foreign Trade of Vietnam, Vietnam Joint Stock Commercial Bank for Industry and Trade, Joint Stock Commercial Bank for Investment and Development of Vietnam, Mekong Housing Bank (under this Circular, it is referred as the equitized state-owned commercial banks) and other related organizations.

Article 2. Management of off balance sheet debt items

1. The off balance sheet debt items retained are off balance sheet debt items that are not included in the value of enterprise when equitizing the state commercial banks and being allowed by the Prime Minister that the equitized State-Owned Commercial Banks shall continue the management and debt collection for the state budget.

2. The equitized state-owned commercial banks shall have the responsibility to determine and report the State Bank of Vietnam on the balance due of off balance sheet debt items thatare not included in the value of enterprise when equitizing; record, keep track of and manage tightly and propose the measures to collect the off balance sheet debt items that are not included in the value of enterprise when equitizing for the state budget.

3. The state commercial bank shall reconsider and report the balance due of off balance sheet debt items shall be retained that are not included in the value of enterprise when equitizing of each state commercial bank at the time of determining the enterprise valuation to the Ministry of Finance; Examine and monitor the equitized commercial bank to continue the management, keep track of and collect for the state budget and ensure not draining the state asset.

Article 3. Management of collected money from off balance sheet debt items retained

1. The money collected from off balance sheet debt items retained according to Clause 2 Article 2 of this Circular is the real money collected by the State commercial bank from off balance sheet debt items. The equitized state commercial bank is allowed to keep 20% of the money revoked from off balance sheet debt items shall be retained to record into the income.

2. Arising expenses related to off balance sheet debt items retained include all expenses related to the handling of off balance sheet debt items (expense to put on sale of the assets, expense to manage the assured assets, auction expenses...), the equitized state commercial banks shall record the expenses according to the law and financial regulations applied for credit institutions. All mentioned expenses must have the valid bill, documents as stipulated by the law.

3. Writing method

a) The detail of money revoked from off balance sheet debt items retained in the quarter, the equitized commercial bank shall record into the account that keeps track of the liability.

b) At the end of the quarter, the equitized commercial bank shall write as follows:

- For 20% over the money collected from off balance sheet retained, the equitized state commercial bank shall record into miscellaneous income items.

- For 80% over the money collected from off balance sheet debt items retained, the equitized state commercial bank shall submit to the state budget.

Article 4. Collecting agency and time to remit the State budget for revoked money from off balance sheet debt items that must be submitted to the State Budget

1. Within 15 days since the day end of the quarter, the Equitized State-Owned Commercial Banks shall submit all collected amount of off balance sheet debt money that must be submitted to the State Budget arising in the quarter into the State Budget at the State Treasure as stipulated under the Decree No. 128/2008/TT-BTC dated December 24, 2008 on guiding the collection and management of the State Budget revenues through State Treasuries.

2. All collected money from off balance sheet debt items that must be submitted to the State Budget as stipulated under Clause 1 Article 4 of this Circular shall be submitted to the State Budget according to:

a) Equivalent chapter of the State commercial bank (chapter 139:Joint stock commercial Bank for Foreign Trade of Vietnam; chapter 140: Vietnam Joint Stock Commercial Bank for Industry and Trade; chapter 142: Joint Stock Commercial Bank for Investment and Development of Vietnam; chapter 144: Mekong Housing Bank).

b) Type 340, Clause 341.

c) Section 3650, sub-section 3653 “collection of debt using the state budget capital”.

Article 5. Reporting regime

1. Biannually according to the calendar year, from January 01 to June 30 and from July 01 to December 31 annually, the equitized state-owned commercial banks that have the off balance sheet debt items retained shall have the responsibility to make a report to the Ministry of Finance, the State Bank of Vietnam on off balance sheet debt items retained, collected money from off balance sheet debt items retained, money extracted for the equitized state-owned commercial banks, amount of money that must be submitted to the state budget, amount of money that was submitted to the state budget. The period report till December 31 annually shall include the summary of accumulated money collected from off balance sheet debt items retained for the whole year (details in the attached appendix).

2. Time to send the report:

- The first 6 month report must be sent no later than 20 days since the last day of reporting period;

- The year-end report must be sent no later than 90 days since the end day of financial year.

Article 6. Implementation organization

1. This Circular takes effect on July 22, 2013.

2. In the course of implementation, any arising problems should be reported timely to the Ministry of Finance for consideration and guidance.

For the Minister of Finance

Deputy Minister

Tran Xuan Ha