On December 31, 2019, the State Bank issued Circular No. 33/2019 / TT-NHNN, amending and supplementing a number of articles of Circular 34/2013 / TT-NHNN regulating the issuance of domestic promissory notes, treasury bills and bonds by credit institutions and foreign bank branches.
Accordingly, from February 19, 2020, when the Circular takes effect, the registration of the Bond Issuance Plan will be implemented in accordance with the new provisions of Circular No. 33/2019. Specifically:
In case foreign credit institutions wish to issue bonds, they will submit to the Department of Monetary Policy for approval of bond issuance plans. The application for approval must contain sufficient information, including: total face value of the issue, name of the bond, interest rate, time, method of issue, plan of using capital and payment plan , commitment of credit institutions. Within 30 days from the date of receiving the complete and valid dossier, the State Bank will issue a written reply approving or disapproving the bond issuance plan.
Another noteworthy point of this Circular is the regulation on interest rates for valuable papers issued by credit institutions, foreign banks’ branches in addition to complying with current regulations on The interest rate of the State Bank must also comply with the provisions of the Securities Law and Decree 163/2018 / ND-CP.
Thus, with the issuance of Circular 33/2019 / TT-NHNN, the State Bank has taken steps to strengthen the management of capital mobilization activities of credit institutions and foreign bank branches. to ensure the transparency and safety of the financial market, as well as the effectiveness of monetary policy.