Supervising International Bond Capital Sources

This is one of the major contents of statutes on management and supervision over the use of the capital source from the global government bond, which has recently been issued by the Minister of Finance.

 

Under the new ruling, Vinashin is responsible for setting an overall plan to distribute its endowed capital from international government bond for its projects. Its capital use will be supervised by the Ministry of Finance and service banks.

 

According to the Ministry of Finance’s regulation, the capital withdrawal for advance and payment from the international government bond is only done after its investment projects have been ratified or after the relevant governing bodies approved.

After receiving the capital, the Ministry of Finance will transfer funds into Vinashin’s account. Principal and interest of bonds as well as additional costs will be directly returned in USD banknotes by Vinashin. In case of insufficient USD, Vinashin can refund in VND but under the consent of the Ministry of Finance. Three days before the maturity of the interest payment, Vinashin will transfer this money into its account at the Bank for Investment and Development of Vietnam (BIDV).

 

In case of failing to pay due debts, Vinashin must send its request to the Ministry of Finance to ask for advance to resettle its debts. If Vinashin refuses to do its duties, the Ministry of Finance has rights to select indemnity modes, even requiring banks to freeze Vinashin’s accounts. 

 

The Ministry of Finance will periodically check the use of capital source from the global government bond as well as the solvency of Vinashin.

 

(Source: Ministry of Finance)