Circular No. 11/2003/TT-NHNN of December 11, 2003, providing guidance on foreign exchange activity for the purchase of Government bonds in foreign currency by organizations, individuals in accordance with the Decision No. 182/2003/QD-TTg dated 5 September

THE STATE BANK OF VIETNAM
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SOCIALIST REPUBLIC OF VIETNAM
Independence-Freedom-Happiness
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No. 11/2003/TT-NHNN

Hanoi, December 11, 2003

 

CIRCULAR

PROVIDING GUIDANCE ON FOREIGN EXCHANGE ACTIVITY FOR THE PURCHASE OF GOVERNMENT BONDS IN FOREIGN CURRENCY BY ORGANIZATIONS, INDIVIDUALS IN ACCORDANCE WITH THE DECISION NO. 182/2003/QD-TTG DATED 5 SEPTEMBER, 2003 OF THE PRIME MINISTER

Pursuant to the Decision No. 182/2003/QD-TTg dated 5 September, 2003 of the Prime Minister on the issuance of the Government Bonds for investing in several national important communication and irrigation works, the State Bank of Vietnam provides guidance on the implementation of foreign exchange activity for the purchase of the Government Bonds in foreign currency by organizations and individuals as follows:

1. Subjects:

Subjects participating in the purchase of Government Bonds shall include:

a. Vietnamese citizen living inside and outside the country;

b. Vietnamese people permanently residing in foreign countries;

c. Foreigners who are working, residing in Vietnam;

d. Administrative, non-productive agencies;

e. Political organizations, socio-political organizations, vocational-socio-political organizations; social organizations and socio- vocational organizations;

f. Organizations of every economic sector;

g. Foreign organizations that are operating in Vietnamese territory

2. Governing Scope:

This Circular shall govern foreign exchange activity concerning the purchase of Government Bonds in foreign currency by organizations and individuals in accordance with the Decision No. 182/2003/QD-TTg dated 5 September, 2003 of the Prime Minister.

3. The opening and use of foreign currency account for the purchase of Government Bonds by foreign currency:

3.1. Subjects that purchase Government Bonds in foreign currency shall be entitled to open and use their account “foreign currency deposit” to buy Government Bonds in foreign currency. The opening and use of the account “foreign currency deposit” at Commercial Banks permitted to engage in foreign exchange activity in Vietnam shall comply with the Circular No. 01/1999/TT-NHNN7 dated 16 April, 1999 of the State Bank guiding the implementation of the Decree No. 63/1998/ND-CP dated 17 August, 1998 of the Government on foreign exchange control.

3.2. The content of receipt and payment on the account “foreign currency deposit” of organizations, individuals as provided for at Section I and II of Chapter I, Section I and III of Chapter II, Part II in the Circular No. 01/1999/TT-NHNN7 dated 16 April, 1999 of the State Bank is supplemented as follows:

Receipt:

Foreign currency receipt from the transfer or receipt of interest, payment of the principal of Government Bonds in foreign currency upon the maturity.

Payment:

Foreign currency payment for the purchase of Government Bonds in foreign currency.

4. Provision on the use of foreign currency for purchasing Government Bonds:

4.1. Bond purchasers being organizations shall be entitled to use foreign currency on the account “foreign currency deposit” at banks permitted to engage in foreign exchange business for their purchase of Government Bonds in foreign currency.

4.2. Bond purchasers being Vietnamese citizen shall be entitled to use foreign currency on the account “foreign currency deposit” and cash in foreign currency for their purchase of Government Bonds in foreign currency at the State Treasury.

4.3. Bonds purchasers being Vietnamese people, who permanently reside in a foreign country, and foreigners, who work and reside in Vietnam, shall be entitled to use foreign currency on the account “foreign currency deposit” for their purchase of Government Bonds in foreign currency at the State Treasury.

5. Implementing provisions

5.1. This Circular shall be effective after 15 days from the date of its publication in the Official Gazette.

5.2. Organizations, individuals purchasing Government Bonds in foreign currency in accordance with the Decision No. 182/2003/QD-TTg dated 5 September, 2003 of the Government on the issuance of Government Bonds for investing in several national important traffic and irrigational works shall be responsible for the implementation of this Circular.

5.3. Director of the Administrative Department, Director of Foreign Exchange Control Department, Heads of units of the State Bank of Vietnam, General Managers (Managers) of Commercial Banks that are permitted to engage in foreign exchange business shall be responsible for organization and deployment of this Circular

 

 

FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR

Phung Khac Ke

 

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