VietnameseDecree No. 23/CP dated March 22, 1995 of the Government on the issue of international bonds
ATTRIBUTE
Decree No. 23/CP dated March 22, 1995 of the Government on the issue of international bonds
| Issuing body: | Government | Effective date: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Official number: | 23/CP | Signer: | Phan Van Khai |
| Type: | Decree | Expiry date: | Updating |
| Issuing date: | 22/03/1995 | Effect status: | Known Please log in to a subscriber account to use this function. Don’t have an account? Register here |
| Fields: | Finance - Banking |
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THE GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom – Happiness -------- |
No: 23-CP | Hanoi, March 22, 1995 |
DECREE
ON THE ISSUE OF INTERNATIONAL BONDS
THE GOVERNMENT
Pursuant to the Law on Organization of the Government on the 30th of September 1992;
At the proposal of the Minister of Finance and the Heads of the branches concerned,
DECREES:
Article 1.- International bonds are certificates of debt which have denominations and terms of payment and bear interest, issued to borrow capital from the international capital market to meet the requirements for investment in the economic development of Vietnam.
Article 2.- There are 3 types of international bonds :
- Government bonds.
- Bonds of the State Commercial Banks (hereunder referred to as Bank bonds).
- Bonds of State-owned businesses.
Article 3.- Government bonds are issued by the Ministry of Finance to borrow foreign capital to invest in economic development.
Article 4.- Bank bonds are issued by the State Commercial Banks to borrow foreign capital to broaden the banks' investment credits.
Article 5.- Bonds of State-owned businesses are issued by State-owned businesses to borrow foreign capital for investment projects to expand production and business, and for renewal of production equipment and technology of businesses.
Article 6.- Those State-owned businesses and State Commercial Banks, which wish to issue international bonds, must ensure the following conditions :
1/ They have been granted a certificate of business registration as stipulated by the law on the establishment of State-owned businesses.
2/ They have had 3 consecutive profitable years in production and business before applying to issue bonds, and are certified by an independent audit company that they are in a sound financial state, have a good prospect for development, and are free from any law-breaking acts and from financial discipline.
3/ They must have an efficient investment project ratified by the authorized level.
4/ Their plan of issuing international bonds has been approved by the Government.
Article 7.- International bonds are issued by series by decision of the Government. The issue and payment of bonds are conducted in accordance with international practice.
Article 8.- The bond-issuing organization must repay the full value of the bonds, both principal and interest, when they are due, and defray all costs concerning the issue and payment of bonds.
Article 9.- The source of capital borrowed through the issue of Government bonds shall be used as development investment in accordance with the State Budget plan already ratified, or shall be re-lent to State-owned businesses to invest in ratified projects on a refund basis.
The source of capital for payment of Government bonds (including both principal and interest) shall be guaranteed by the State Budget and the capital retrieved by businesses.
Article 10.- The source of capital borrowed through the issue of Bank bonds shall be used to broaden the medium- and long-term investment credits by the Banks.
The source of capital for payment of Bank bonds (including both principal and interest) shall be guaranteed by the State Commercial Banks.
Article 11.- The source of capital borrowed through the issue of bonds of State-owned businesses shall be used only to invest in the already ratified projects of the businesses.
The source of capital for payment of bonds of State-owned businesses (including both principal and interest) shall be guaranteed by State-owned businesses themselves with the revenues of the projects concerned after payment of taxes to the State as stipulated by law, and with other legal sources of capital.
Article 12.- The Ministry of Finance has the following tasks :
- Making plans and schedules for the issue of Government bonds to the international capital market, and submitting them to the Government for decision.
- Selecting the foreign partners concerned, and signing contracts with them on the issue of Government bonds after getting the Government's approval.
- Organizing the issue and payment of Government bonds in accordance with international practice and with Vietnam's law.
-Drawing up, together with the State Planning Committee, a plan on how to use the source of capital of Government bonds and submit it to the Government for decision.
Ensuring that the capital borrowed through Government bonds is used for the right purpose and with efficiency. Planning and organizing the payment of the loans, both principal and interest, when they are due, together with all costs involving the issue and payment of Government bonds.
- Examining and checking the schedule on the issue of bonds of State-owned business, and submitting it to the Government for decision; together with the State Bank, examining and checking the schedule on the issue of bonds of the State Commercial Banks before the State Bank submits it to the Government for decision.
- Guiding, checking and supervising the State-owned businesses in determining the coefficient of credibility, in organizing the issue of bonds and the use of loans for the right purpose and with efficiency, and the retrieval of capital for payment of bonds.
Article 13.- The State managing agency directly controlling the bond-issuing State-owned business has the following tasks :
- Examining and deciding the project of investment in production and business of the business concerned, or submitting it to the authorized level for decision.
- Giving its opinion on the bond-issuing schedule of the State-owned business concerned, and sending it to the Ministry of Finance to examine and to submit it to the Government for decision.
Checking and supervising the issue of bonds and the use of capital for the right purpose and with efficiency, and the retrieval of capital for payment of bonds when they are due.
Article 14.-The State Bank has the following tasks :
- Examining and deciding the projects of State Commercial Banks for expansion of their business activities.
- Examining the bond-issuing schedules of State Commercial Banks, and submitting them to the Government for decision.
- Guiding, checking and supervising the Commercial Banks in organizing the issue of bonds and the use of loans for the right purpose and with efficiency, and the retrieval of capital for payment of bonds.
Article 15.- The Ministry of Finance, the State Planning Committee, the State Banks, the State agencies directly managing the State-owned businesses, in furtherance of their powers and responsibilities, shall have to manage the issue of the above-mentioned bonds and ensure that they are used efficiently.
Article 16.- This Decree takes effect as from the date of its promulgation.
Article 17.- The Ministers, the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, and the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.
ON BEHALF OF THE GOVERNMENT FOR THE PRIME MINISTER DEPUTY PRIME MINISTER Phan Van Khai |
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