Chapter IV
MANAGEMENT OF LOANS AND REPAYMENT THEREOF
Article 19. Management of loans
1. Issuance of debt instruments in domestic market must ensure:
a) those debt instruments are included in the issuance plan approved by competent authorities;
b) the Ministry of Finance, on behalf of the Government, shall issue Government’s debt instruments or authorize State Treasury to issue those debt instruments or People's Committees of provinces to issue provincial bonds;
c) those debt instruments are issued in accordance with provisions of the Law on Issuance, registration, depository, listing and trading of debt instruments on the stock market.
2. Issuance of Government bonds in international market must:
a) be approved in the project for issuing Government bonds in international market by the Government;
b) conform to law provisions applied to the market where those bonds are issued;
c) ensure that international bonds are issued only to finance central government budget deficit for investment and development in accordance with provisions of the Law on State Budget and restructure Government debts. Government bonds must not be issued in international market to be on-lent.
3. External loans under loan contract or agreements must ensure:
a) those loans are only used for investment and development but not for recurrent expenditures;
b) new loans must be evaluated in terms of grant element, impact on loan limits and indicators of public debt safety in accordance with provisions of the Law on Public Debt Management;
c) those loans are included in the loan project approved by the Prime Minister which specifies operated financial mechanism of programs and projects funded by loans provided or on-lent;
d) negotiation and sign of loan contracts are made for programs or projects funded by external loans approved by competent authorities In case the loan contract is considered international agreement on behalf of the State, the Government shall submit a report on negotiation, sign or ratification of such contract to the President and for loan contract on behalf of the Government, the Prime Minister shall make decision and provide guidelines for negotiation and sign of such contract.
4. Loans from other financial sources must:
a) be ratified by competent authorities in accordance with provisions of the Law on Public debt management;
b) be raised under loan contracts or as ratified by competent authorities;
c) ensure that loan amounts, loan period, loan interests, expenses relating to the loans, repayment methods, repayment period, debt extension, penalties for late repayment (if any), rights and responsibilities of relevant parties and other conditions or provisions regarding the loans are clearly specified.
Article 20. Management of loan use
1. Domestic loans may be used to:
a) finance the deficit of central government budget and local government budget;
b) finance temporary central government budget and ensure liquidity of Government bond market;
c) repay due principals of central and local government budget and restructure Government debts
2. External loans of the Government may be used to:
a) finance central government budget deficit, to be specific:
- Finance investment and development programs and projects subject to obligatory expenditure of central government budget
- Include external loans in cash in state budget for investment and development
b) to be on-lent to People's Committees of provinces, enterprises and public service providers in accordance with regulations in the Government Decree on ODA loans to be on-lent and external concessional loans
3. Estimate making:
a) Ministries and provinces shall make estimates of loan use in conjunction with state budget estimates in compliance with provisions of the Law on State Budget which are then submitted to the Ministry of Finance and Ministry of Planning and Investment to be consolidated;
b) The Ministry of Finance and Ministry of Planning and Investment shall make a consolidated report on the above-mentioned estimates and send it to competent authorities for approval in accordance with provisions of the Law on State Budget.
4. Reciprocal capital raising:
a) Annual financial plans must be made for programs and projects funded by external loans of the Government. Such plan shall contain external loan plans (according to each country or the sponsor) and domestic reciprocal capital plans;
b) For programs and project fully funded by external loans of the Government, reciprocal capitals may be generated from annual state budget estimates made by the governing body according to budget management decentralization and from other financial sources in accordance with the law provisions;
c) For programs and project partially or fully funded by the Government's external loans to be on-lent, reciprocal capital may be generated from equity capital or other legal capital sources of the project owner.
5. The Ministry of Finance shall provide specific guidelines for financial management regime applied to programs and projects funded by external loans of the Government.
Article 21. Organization of repayment
1. With regard to Government debts:
a) The Ministry of Finance shall set aside an amount in central government budget to repay debts;
b) The Ministry of Finance shall fully pay off principals, interests and charges on schedule;
c) For loans to be on-lent, the Ministry of Finance and intermediary borrowers authorized by the Ministry of Finance shall be responsible for recovering all principals, interests, charges and relevant fees.
2. With regard to provincial debts:
a) People’s Committees of provinces shall set aside an amount in local government budget to repay debts;
b) People's Committees of provinces shall fully pay off principals, interests and charges on schedule.
3. With regard to sovereign-guaranteed debts:
a) Sovereign-guaranteed borrowers shall meet debt service as agreed in the loan contracts signed with their creditors and contracts for sovereign guarantee.
b) Guarantees and guaranteed-borrowers must fulfill their repayment obligation in accordance with regulations in the Government Decree on provision and management of sovereign guarantee.
Tìm kiếm
Nghị định 94/2018/NĐ-CP (Bản Pdf)
Nghị định 94/2018/NĐ-CP (Bản Word)
