Decision No. 61/2013/QD-TTg of October 25, 2013, on provision of information and coordination in the performance of national credit rating work

THE PRIME MINISTER

Decision No. 61/2013/QD-TTg of October 25, 2013, on provision of information and coordination in the performance of national credit rating work

Pursuant to the December 25, 2001 Law on Organization of the Government;

At the proposal of the Minister of Finance,

The Prime Minister promulgates the Decision on provision of information and coordination in the performance of national credit rating work.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decision prescribes the following:

1. The provision of information and data on the socio-economic situation to serve national credit rating work.

2. The process of coordination among ministries, sectors and agencies involved in the performance of national credit rating work.

Article 2.Subjects of application

This Decision applies to agencies, organizations and individuals involved in national credit rating work.

Article 3.Interpretation

In this Decision, the terms below are construed as follows:

1. National credit rating means an assessment indicator of financial capability and the ability to pay back on time principals and interests of debts of a nation. A lower national credit rating indicates higher risk of default.

National credit rating covers:

- National credit limit;

- Credit rating of debt instruments in foreign and local currencies issued by the Government in the domestic and international capital markets.

Credit ratings are usually denoted in letters, numbers and signs (A, B, C, D, a, 1, 2, 3, +, -).

2. National credit rating service means the analysis and assessment by credit rating agencies of economic, political and social information of a nation in order to assign a credit rating for such nation.

3. Credit rating agency means an independent agency specialized in credit rating, including national credit rating.

4. National credit rating work means that related ministries, sectors and institutions provide data, work and exchange of information with credit rating agencies, helping the latter make assessment reports on national credit rating.

5. Debt instruments means financial products establishing the debt obligations of an issuing institution, including bonds, public debentures, loans and other financial products giving rise to the debt obligations.

Chapter II

PROVISION OF INFORMATION TO SERVE NATIONAL CREDIT RATING WORK

Article 4.Purposes of provision of information

The provision of information and data aims to improve the database system and make overview reports on the socio-economic situation of Vietnam to serve national credit rating work.

Article 5.Principles of provision of information

The provision of information and data to serve credit rating work adheres to the following principles:

1. Accuracy, adequacy and update of information within the prescribed time limit.

2. Consistency of criteria, forms and calculation method, and provided or publicized data.

3. No repetition and overlapping, and satisfaction of analysis and assessment requirements of credit rating agencies.

4. Compliance with current regulations on provision of information.

Article 6.Types of information necessary for national credit rating work

1. General socio-economic information:

a/ Long-term strategies, medium-term plans, and annual socio-economic development plans and solutions;

b/ Statistics on the implementation of strategies, plans and solutions, and socio-economic forecasts: Economic growth, national income, per-capita income, savings rate, investment ratio, inflation rate, population, employment, unemployment rate and other relevant information.

2. Fiscal information:

a/ Fiscal policies and medium-term financial and budgetary plans;

b/ Data on state budget revenues, expenditures and balance;

c/ Reform of state enterprises;

d/ Debts of the Government; reserve debt obligations of the Government, public debts and foreign debts of the nation;

dd/ Other relevant information.

3. Monetary and banking information:

a/ Monetary policies and monetary policy tools (exchange rate, interest rate, compulsory reserve and open market);

b/ Information on operations of the State Bank, credit institutions and reform of the banking system;

c/ The situation of and data on the balance of payments; foreign exchange reserve; bank credit; non-performing loans, non-performing loan provisions and settlement;

d/ Other relevant information.

4. External economic information:

a/ Import, export and trade balance;

b/ FDI attraction;

c/ Receipt of overseas remittances;

d/ Other relevant information.

5. Political information:

a/ Lines and policies of the Government;

b/ Personnel characteristics of the government apparatus;

c/ Relations between Vietnam and foreign governments and international financial institutions;

d/ Administrative reform and control of administrative procedures;

dd/ Other relevant information.

6. Other economic and social information suggested by credit rating agencies and provided in accordance with law and within the capacity of related Vietnamese agencies and institutions.

Article 7.Information provision periods

1. Information and data are provided by related agencies on a periodical (monthly, quarterly or annual) basis to the Ministry of Finance in data sheets specified in the Appendix to this Decision (not translated herein). If no official data are available by the deadline for provision, agencies may provide to the Ministry of Finance the most updated estimated data.

2. The deadline for monthly provision of information is the 15^thof the subsequent month.

3. The deadline for quarterly provision of information is the 30^thof the first month of the subsequent quarter.

4. The deadline for provision of information for a year is February 28 of the subsequent year.

5. Data on plans and forecasts for the subsequent year must be provided on December 15 of the current year at the latest.

Article 8.Modes of information provision

1. Information and data not classified as state secrets may be provided in writing, via facsimile or in electronic data transmitted through the computer network or on information-carrying media.

2. Information classified as state secrets must be provided in accordance with the law on protection of state secrets.

Article 9.Responsibilities of agencies

1. The Ministry of Finance:

a/ To assume the prime responsibility for, and coordinate with related ministries, sectors and institutions in, collecting and analyzing information and making overview reports on the socio-economic situation to serve national credit rating work;

b/ To exploit information and data on the websites of related ministries, sectors and institutions;

c/ To receive information provided by ministries, sectors, institutions and individuals;

d/ To provide information and data at the request of credit rating agencies on the contents specified in Article 6, including but not limited to the data specified in the Appendix to this Decision;

dd/ To use, store, provide and publicize information and reports in accordance with Vietnamese law and agreements on cooperation with credit rating agencies.

2. Related ministries, sectors and agencies shall provide information and data to the Ministry of Finance for provision to credit rating agencies.

a/ The State Bank of Vietnam shall provide data and information on foreign debts of enterprises, monetary and exchange rate policies, operations of the banking system, programs on reform of the banking system, overseas remittances, foreign exchange reserve, balance of payment and other relevant information according to its functions and tasks;

b/ The Ministry of Planning and Investment shall provide data and information on long-term strategies, medium-term plans, socio-economic development orientations and plans, national income, per-capita national income, growth prospect, savings rate, entire society’s investment ratio, foreign direct investment and other relevant information according to its functions and tasks;

c/ The Ministry of Industry and Trade shall provide data and information on import, export, trade balance and other relevant information according to its functions and tasks;

d/ Other agencies shall provide data and information according to their management functions and tasks at the request of the Ministry of Finance and credit rating agencies;

dd/ Ministries and sectors shall periodically provide data to the Ministry of Finance made according to the forms provided in the Appendix to this Decision and information and data at the request of credit rating agencies at each working session with the Ministry of Finance.

Chapter III

COORDINATION IN THE PERFORMANCE OF NATIONAL CREDIT RATING WORK

Article 10.Purposes and requirements

1. National credit rating work is a regular process of exchanging updated information with investors, step by step raising the national prestige on the international arena and better meeting requirements of economic integration in the new period.

2. To enhance the initiative and accountability of related ministries, sectors and institutions in national credit rating work.

3. To ensure consistency, timeliness and accuracy.

4. Provided information and data, overview reports on the socio-economic situation and explanations must fully reflect and be truthful to the actual state of the economy and comply with the provisions of this Decision.

5. To proactively learn experiences of regional countries and countries which have successfully performed national credit rating work. To promote the role of institutions assigned to perform and participate in national credit rating work.

Article 11.Process of national credit rating

The process of national credit rating involves the following steps:

1. Contacting, selecting and signing agreements on provision of national credit rating services with credit rating agencies.

2. Working out plans and reach agreement on work programs with credit rating agencies.

3. Making and presenting overview reports on socio-economic situation to credit rating agencies.

4. Organizing working sessions with credit rating agencies.

5. Providing necessary information and data at the request of credit rating agencies.

6. Giving comments and recommendations on judgments and assessments of credit rating agencies.

7. Credit rating agencies announce the national credit rating.

Article 12.Selection of cooperation partners and signing of agreements on provision of national credit rating services

1. A credit rating agency selected for cooperation and signing of an agreement on provision of national credit rating services must satisfy the following requirements:

a/ Being prestigious on the international market;

b/ Meeting the requirements on participation in the international capital market and issuance of debt instruments of the Government on the international capital market;

c/ Being eligible according to the recommendations of investors and foreign lenders when deciding on investment in Vietnam.

2. An agreement with a national credit rating agency has the following principal terms:

a/ Information on the credit rating agency;

b/ Information on the representatives signing the agreement;

c/ Agreement implementation time limit;

d/ Rights, obligations and responsibilities of the parties.

Terms on provision, monitoring, update, analysis, assessment and confidentiality of information and data, announcement of national credit rating, settlement of disputes and other relevant issues.

3. Charges for national credit rating services include the charge for the initial credit rating service, charge for maintaining annual credit rating, charge for use of credit coefficient for the issuance of governmental debt instruments, and other charges (if any).

4. The agreement on provision of national credit rating services is terminated upon the expiration of its validity duration or under an agreement between the parties on termination of the contract ahead of schedule.

5. When considering it necessary to cancel the current agreement with a credit rating agency and sign a new agreement, the Ministry of Finance shall consult related agencies before submitting its proposal to the Prime Minister for consideration and decision.

6. The Ministry of Finance shall represent the Government in signing an agreement with a credit rating agency or notify the cancellation of an agreement with a credit rating agency.

7. In case a credit rating agency is willing to conduct the national credit rating without requiring the signing of a service provision agreement but requesting the provision of information and proposing to work with related Vietnamese agencies, the Ministry of Finance shall consider and make specific decisions. In case of necessity, the Ministry of Finance shall assume the prime responsibility and notify related agencies to arrange working sessions with the credit rating agency.

Article 13.Plans on working sessions with credit rating agencies

1. The Ministry of Finance shall act as the focal contact with credit rating agencies for reaching agreement on annual plans on working sessions between these credit rating agencies and agencies, institutions and individuals in Vietnam.

2. At the request of credit rating agencies, the Ministry of Finance shall notify working plans and contents to the State Bank, the Ministry of Planning and Investment, the Ministry of Industry and Trade and other related agencies and institutions for preparing for and organizing working sessions directly with credit rating agencies.

Article 14.Preparation of information and data and making overview reports on socio-economic situation to be provided to credit rating agencies

1. The provision of information and data for the national credit rating complies with the provisions of Chapter II of this Decision.

2. The Ministry of Finance shall assume the prime responsibility for, and coordinate with related agencies and national credit rating consultancy institutions in, making overview reports on the socio-economic situation of Vietnam based on data and information provided by related agencies.

3. Draft reports must be sent by the Ministry of Finance to related agencies for their opinions before being provided to credit rating agencies.

4. An overview report on the socio-economic situation must be sent to the credit rating agency at least one week before the credit rating agency comes to work directly in Vietnam.

Article 15.Organization of working sessions with credit rating agencies

1. The Ministry of Finance shall assume the prime responsibility for organizing annual or extraordinary working sessions and discussions with credit rating agencies. An extraordinary working session or discussion is organized when a considerable change occurs in the socio-economic situation.

2. The State Bank of Vietnam, the Ministry of Planning and Investment, the Ministry of Industry and Trade and other related agencies shall:

a/ Appoint their officials to work with national credit rating agencies who are consonant with to-be-discussed contents as requested by credit rating agencies;

b/ Appoint units to act as focal contacts for exchanging information with credit rating agencies and the Ministry of Finance;

c/ Give answers and explanations to credit rating agencies about questions arising after working sessions or at the latter’s request;

d/ Send additional explanatory information and data to credit rating agencies through the Ministry of Finance at the request of these agencies;

dd/ Take the initiative in contacting credit rating agencies and provide them with information in case of necessity, and at the same time notify such to the Ministry of Finance for coordinated monitoring.

3. Annually, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Government Office and the Ministry of Planning and Investment, the Ministry of Foreign Affairs, the Ministry of Industry and Trade, the National Financial Supervisory Commission and the State Bank of Vietnam in, organizing promotion work, meetings and exchange of information on the socio-economic situation of Vietnam with investors, international financial institutions, export credit institutions being OECD members and credit rating agencies, creating favorable conditions for the raising of capital on the international market and improvement of the national credit rating.

Article 16.Comments and recommendations on conclusions and assessments of credit rating agencies

1. The Ministry of Finance shall coordinate with related ministries, sectors and agencies in providing additional information, data and evidence to credit rating agencies for explanation and assessments which are not close or true to the socio-economic situation of Vietnam.

2. The Ministry of Finance shall assume the prime responsibility for, and coordinate with ministries, sectors and agencies in, proposing and requesting credit rating agencies to reconsider the national credit rating in conformity with the socio-economic situation of Vietnam.

Article 17.Notification of credit rating results and reporting regime

1. The Ministry of Finance shall:

a/ Notify related ministries, sectors and agencies of information on national credit rating results announced by credit rating agencies;

b/ Report to the Prime Minister on annual national credit rating results announced by credit rating agencies.

2. Related ministries, sectors and agencies shall coordinate with the Ministry of Finance in reporting to the Prime Minister on annual national credit rating results and propose solutions to improve the national credit rating.

Article 18.Funds

Funds for activities involved in national credit rating work are incorporated in annual state budget estimates assigned by competent agencies to the related ministries and units.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 19.Effect

This Decision takes effect on December 15, 2013.

Article 20.Organization of implementation

1. The Minister of Finance shall organize the implementation of this Decision.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related individuals shall implement this Decision.-

Prime Minister
NGUYEN TAN DUNG