Quyết định 85/2000/QD-NHNN14

DECISION

PROMULGATING THE REGULATION ON OPEN-MARKET OPERATIONS

THE STATE BANK GOVERNOR

Pursuant to December 12, 1997 Law No.01/1997/QH10 on the Vietnam State Bank and December 12, 1997 Law No.02/1997/QH10 on Credit Institutions;
Pursuant to the Government’s Decree No.15/CP of March 2, 1993 on the tasks, powers and State management responsibilities of the ministries and the ministerial-level agencies;
At the proposal of the Director of the Credit Department,

DECIDES:

Article 1.- To promulgate together with this Decree the Regulation on open-market operations.

Article 2.- This Decision takes effect 15 days after its signing.

Article 3.- The Director of the Office, the Director of the Monetary Policy Department, the Director of the State Bank’s Transaction Bureau, the Director of the Credit Department, the heads of the relevant units under the State Bank, the directors of the State Bank’s branches in the provinces and centrally-run cities, the chairmen of the managing boards and the general directors (directors) of the credit institutions participating in open-market operations shall have to implement this Decision.

REGULATION

ON OPEN-MARKET OPERATIONS
(Promulgated together with the State Bank Governor’s Decision No.85/2000/QD-NHNN14 of March 9, 2000)

Chapter I

GENERAL PROVISIONS

Article 1.- Regulation scope and application objects

This Regulation specifies the purchase and sale of treasury bills, deposit certificates, State Bank credit bills and other short-term valuable papers (hereinafter referred collectively to as valuable papers) between the State Bank and credit institutions on the monetary market, in order to realize the national monetary policy.

Article 2.- Interpretation of terms and expressions

1. Remaining term is the remaining payment term of short-term valuable papers, counting from the date such valuable papers are purchased or sold through open-market operations till the due payment date.

2. Sale and redemption commitment (called forward transaction for short) are undertakings whereby the seller (the State Bank or a credit institution) sells and transfers the ownership right over valuable papers to the buyer (a credit institution or the State Bank), and at the same time commits to buy back such valuable papers and receive back the ownership right thereover after a definite duration.

3. Definitive purchase or sale is the purchase, sale and transfer of ownership right over valuable papers from the seller to the purchaser, not accompanied by a commitment to buy back or resell such valuable papers.

4. Volume bidding is the determination of bid-winning volume of credit institutions participating in open-market operations on the basis of tendering volume of such credit institutions, volume of purchased or sold valuable papers, and interest rate(s) notified by the State Bank.

5. Interest rate bidding is the determination of bid-winning interest rate of credit institutions participating in open-market operations on the basis of tendering interest rates offered by such credit institutions, and volume of purchased or sold valuable papers notified by the State Bank.

6. Notification date is the date when the State Bank sends notices on the purchase or sale of valuable papers.

7. Bidding date is the date when credit institutions submit their tender applications, and the State Bank organizes the bid evaluation and announces the bidding results.

8. Payment date is the date when bid-winning credit institutions carry out the delivery, reception of and payment for valuable papers with the State Bank, 2 days after the bidding date.

Article 3.- The Board for Management of Open-Market Operations

The Board for Management of Open-Market Operations shall be set up by the State Bank and composed of a Deputy State Bank Governor as its chairman and representatives of the concerned units attached to the State Bank as its members. The Board for Management of Open-Market Operations shall be organized and operate under the State Bank Governor’s regulations.

Article 4.- Members participating in open-market operations

Members participating in open-market operations are credit institutions established and operating under the Law on Credit Institutions and fully meeting the conditions prescribed in Article 5 of this Regulation.

Article 5.- The conditions for participating in open markets

Credit institutions shall be recognized as members participating in open-market operations when they fully meet the following conditions:

1. Having deposit accounts at the State Bank (the State Bank’s Transaction Bureau or its provincial/municipal branches);

2. Having adequate facilities necessary for participation in the open-market operations, including computer networks hooked up with the State Bank’s, facsimiles and telephones for transactions with the State Bank;

3. Having registered to participate in the open-market operations.

Article 6.- Recognition of members to participate in open-market operations

Credit institutions that fully meet the conditions prescribed in Article 5 of this Regulation shall be recognized in writing by the State Bank as the market’s members.

Article 7.- Authorized participation in transactions

General directors (directors) of credit institutions shall decide and sign papers related to the open-market operation transactions. General directors (directors) may authorize deputy general directors (deputy directors) or directors of transaction offices or directors of branches of credit institutions to implement their decisions and sign documents for open-market operation transactions, and shall be responsible for such authorization.

Article 8.- Valuable papers which can be transacted through open markets include:

1. Treasury bills.

2. The State Bank’s credit bills.

3. Other kinds of short-term valuable papers specified by the State Bank Governor in each period.

Article 9.- Modes of purchasing or selling valuable papers

The Board for Management of Open-Market Operations shall decide upon each trading session that either of the following modes shall apply:

- Sale and redemption commitment (forward transactions)

- Definitive purchase or sale.

Article 10.- Granting of transaction codes to credit institutions

Credit institutions recognized by the State Bank as members participating in open-market operations shall be granted codes and passwords for conducting transactions via computers and/or facsimiles, as well as codes of signatures of representatives authorized by such credit institutions to participate in transactions, in order to observe the confidentiality regime for open-market operation transactions.

Article 11.- Transaction days and regular organization of performance of open-market operations

1. Days for open-market operation transactions shall be counted according to working days, excluding weekends, public holidays and new year holidays.

2. Fixed time and date for organizing the performance of open-market operations shall be specified by the Board for Management of Open-Market Operations in each period.

Chapter II

SPECIFIC PROVISIONS

Article 12.- Conditions for valuable papers to be transacted through open markets

Valuable papers specified in Article 8 of this Regulation shall be transacted through open-market operations when they fully meet the following conditions:

1. Being transactable;

2. Being issued in Vietnam dong;

3. Being registered at the State Bank according to the State Bank’s regulations on registration of short-term valuable papers;

4. Having a maximum remaining term of 90 days, for valuable papers to be definitively purchased or sold.

Article 13.- Bidding modes

The purchase or sale of valuable papers of all kinds between the State Bank and credit institutions shall be effected by mode of volume bidding or interest rate bidding.

1. Volume bidding:

a/ The State Bank shall notify credit institutions of the interest rates and the volumes of assorted valuable papers that need to be purchased or sold.

b/ Credit institutions shall make their tenders on the volume of assorted valuable papers that need to be purchased or sold at the interest rate notified by the State Bank.

c/ In cases where the total volume tendered by credit institutions is equal to or lower than the volume that the State Bank needs to purchase or sell, the bid-winning volume of each credit institution shall be its tendering volume.

d/ In cases where the total volume tendered by credit institutions exceeds the volume that the State Bank needs to purchase or sell, the bid-winning valuable paper volume shall be distributed in proportion to the volumes tendered by such credit institutions, and rounded up to 10 million dong.

2. Interest rate bidding:

a/ The State Bank shall announce the volume of valuable papers of various kinds that need to be purchased or sold.

b/ Credit institutions shall make their tenders upon different interest rates and volumes of valuable papers that need to be purchased or sold respectively subject to such interest rates. Tendering interest rates shall be calculated in percentage per year (%/year) and shall be rounded up to decimals with 2 numerals following the decimal point.

c/ Credit institutions’ tender applications shall be put in order of tendering interest rates from higher to lower ones for cases where the State Bank purchases valuable papers, or from lower to higher ones for cases where the State Bank sells valuable papers.

d/ Bid-winning interest rate shall be the lowest tendering interest rate (in cases where the State Bank purchases valuable papers) or the highest tendering interest rate (in cases where the State Bank sells valuable papers), provided that at such interest rate, the volume of valuable papers that the State Bank need to purchase or sell can be obtained.

e/ The bid-winning volume of credit institutions is the total of tendering volumes with interest rates equal to or higher than the bid-winning interest rate (in cases where the State Bank purchases valuable papers) or with tendering interest rates equal to or lower than the bid-winning interest rate (in cases where the State Bank sells valuable papers).

f/ In each period, the Board for Management of Open-Market Operations shall announce the application of the bid evaluation mode according to the uniform interest rate or particular interest rates.

- Unified interest rate: The whole bid-winning volume shall be determined according to the bid-winning interest rate.

- Separate interest rates: Each bid-winning volume shall be determined corresponding to each tendering interest rate.

g/ In cases where the total tendering volume of credit institutions, at the bid-winning interest rate, exceeds the volume of valuable papers that the State Bank needs to purchase or sell, the bid-winning valuable paper volume of credit institutions at the bid-winning interest rate shall be calculated in proportion to the volume tendered by such credit institutions at such bid-winning interest rate and rounded up to 10 million dong. In cases where there are various kinds of valuable papers that need to be purchased or sold at the bid-winning interest rate of a credit institution, the State Bank, when evaluating bids, shall put such valuable papers in the following priority order:

- Valuable papers registered for sale or for purchase in larger volumes.

- Valuable papers with shorter selling or purchasing terms (in case of definitive purchase or sale).

- Valuable papers with shorter remaining terms.

Article 14.- Determination of volumes and terms of valuable papers that need to be purchased or sold

1. From 08.00 hrs to 10.00 hrs on the notification date, the Head of the Board for Management of Open-Market Operations or Deputy-Head authorized by the Head shall meet with the Board’s members to determine the following principal contents:

a/ Volume of assorted valuable papers that need to be purchased or sold;

b/ Bidding mode;

c/ Bid evaluation mode (in case of interest rate bidding);

d/ Terms of forward purchase or sale transactions;

e/ Purchasing or selling interest rates (in case of volume bidding)

2. The determination of the above-said contents must be based on the following grounds:

a/ Objectives of the monetary policy;

b/ Predicted liquidity capital amount;

c/ Bid-winning volumes and interest rates of assorted short-term valuable papers already purchased or sold by the State Bank through open-market operations at the latest bidding session;

d/ Reference to current interest rates on the market;

e/ Situation on the State Bank’s activities of reallocating capital to credit institutions.

3. At 11.30 hrs on the notification date at the latest, the Board for Management of Open-Market Operations shall notify the State Bank’s Transaction Bureau (the section for open-market operations) of the contents specified in Clause 1 of this Article.

Article 15.- Notices on purchase or sale of valuable papers

From 13.00 hrs to 14.30 hrs on the notification date, the State Bank’s Transaction Bureau shall send notices on purchase or sale of valuable papers to credit institutions and the State Bank’s branches via computer networks with the following principal contents:

1. Bidding date;

2. Payment date;

3. Kinds of valuable papers that need to be purchased or sold;

4. Terms of valuable papers;

5. Forms of valuable papers that need to be purchased or sold (certificates or book entries);

6. Volume to be purchased or sold (calculated according to the value of valuable papers when they are due for payment);

7. Due payment date of each kind of short-term valuable papers (in cases where the State Bank sells them);

8. Terms of forward transactions;

9. Bidding mode;

10. Bid evaluation mode (in case of interest rate bidding);

11. Purchase or sale modes;

12. Interest rates applied by the State Bank in purchases or sales (in case of volume bidding).

At each purchase or sale transaction session, the State Bank shall apply only one uniform purchase or sale term to different kinds of valuable papers and apply either mode of interest rate bidding or volume bidding.

Article 16.- Submission of tender applications

From 08.00 hrs to 10.00 hrs on the bidding date (immediately after the notification date), credit institutions shall base themselves on the State Bank’s notices on purchase or sale of valuable papers to submit tender applications for purchase or sale registration with the State Bank’s Transaction Bureau (the section for open-market operations) via the computer networks with the following contents:

1. Kinds of valuable papers that need to be purchased or sold;

2. Terms of valuable papers;

3. Forms of valuable papers that need to be purchased or sold (certificates or book entries);

4. Volume to be purchased or sold (calculated according to the value of valuable papers when they are due for payment);

5. Tendering interest rate of each kind of valuable papers that need to be purchased or sold (in case of interest rate bidding);

6. Due payment date of each kind;

7. Purchase or sale mode;

8. Purchase or sale term of each kind (number of days);

9. Codes of signatures of transaction participants (table makers), controllers and competent persons.

Within the time limit for submission of tender applications, credit institutions may change contents of their tender applications to new ones or cancel their tender applications via computer networks. Changes to contents of credit institutions’ tender applications shall be effective only after the previous tender applications are revoked.

The total volume of valuable papers registered for purchase or sale by a credit institution in a tender application must be at least 100 million dong.

Article 17.- Invalid tender applications

A credit institution’s tender application shall be considered invalid in the following cases:

1. The tender application is not compatible with the prescribed code;

2. The code of the signature of the credit institution’s representative in the tender application does not match the signature code granted by the State Bank;

3. The tendering interest rate has not yet been rounded up to decimals with two numerals after the decimal point;

4. The tender application clearly states the request for purchase at the lowest price or the request for sale at the highest price;

5. The total volume of valuable papers inscribed in a tender application is lower than 100 million dong;

6. The tender application’s contents are not properly filled in according to provisions of this Regulation;

7. The credit institution sells valuable papers but has no valuable papers registered at the State Bank as prescribed. The remaining term of valuable papers registered for sale is shorter than the term of contracts for sale and redemption.

For invalid tender applications, the State Bank (the Transaction Bureau) shall notify the concerned credit institutions thereof via computer networks or facsimile.

Article 18.- Organization of bid evaluation

1. From 10.00 hrs to 11.30 hrs on the bidding date, the State Bank shall carry out the bid evaluation. The State Bank Governor shall assign the Director of the State Bank’s Transaction Bureau to organize the bid evaluation to the witness of members of the Board for Management of Open-Market Operations to be decided by the Board’s Chairman.

2. The bid evaluation shall be carried out according to the contents notified by the Board for Management of Open-Market Operations and the procedural process for open-market operations prescribed by the State Bank’s Transaction Bureau.

3. In cases where a valuable paper-selling credit institution does not have enough valuable papers registered at the State Bank or the remaining term of valuable papers registered for sale is shorter than the term of the sale and redemption contract, the State Bank shall only accept to carry out bid evaluation for a volume equal to that of valuable papers already registered at the State Bank or a volume of valuable papers with a term longer than that of the sale and redemption contract.

Article 19.- Determination of purchasing price or selling price of valuable papers

1. For case of forward sale with sale and redemption contracts:

a/ The selling price between the State Bank and credit institutions shall be determined according to the following formula:

Gd: Selling price;

GT: Value of valuable papers when they are due for payment;

T: Remaining term of valuable papers (number of days);

L: Unified interest rate or separate interest rate (in case of interest rate bidding) or interest rate announced by the State Bank (in case of volume bidding) at the bidding session, calculated in percentage per year (%/year);

365: Conventional number of days of a year.

b/ The re-purchase price between the State Bank and credit institutions shall be determined according to the following formula:

Gv: Re-purchase price;

Gd: Selling price;

L: Unified interest rate or separate interest rate (in case of interest rate bidding) or interest rate announced by the State Bank (in case of volume bidding) at the bidding session, calculated in percentage per year (%/year);

Tb: Sale term (number of days);

365: Conventional number of days of a year.

2. For case of definitive purchase or sale of valuable papers between the State Bank and credit institutions:

Definitive purchase or sale prices of valuable papers shall be determined according to the formula prescribed in Clause 1, Paragraph a of this Article.

Article 20.- Notification of bidding results

1. At 14.00 hrs on the bidding date at the latest, the State Bank shall notify the bidding results to credit institutions participating in the bidding and the State Bank’s provincial/municipal branches via the computer network. A bidding result notice shall include the following principal contents:

a/ Bidding date;

b/ Bid-winning volume;

c/ Bid-failing volume;

d/ Bid-winning interest rate;

e/ Payment amount;

f/ Payment date.

2. Bidding result notices shall serve as basis for effecting the delivery and reception of and payment for valuable papers in case of definitive purchase or sale of valuable papers, and at the same time basis for making sale and redemption contract in case of forward purchase or sale.

Article 21.- Making, hand-over and reception of sale and redemption contracts

1. Contracts for sale and redemption of valuable papers shall be made by the sellers.

2. Upon receiving notices on the bidding results sent by the State Bank, credit institutions that sell valuable papers shall make sale and redemption contracts and send them to the State Bank via computer networks and facsimile.

3. The State Bank (the Transaction Bureau) shall make sale and redemption contracts in cases where the State Bank sells valuable papers to credit institutions. Sale and redemption contracts made by the State Bank shall be sent to the bid-winning credit institutions via computer networks and facsimile.

4. Sale and redemption contracts must be made and sent not later than 15.00 hrs on the bidding date.

5. Upon receiving sale and redemption contracts, the competent persons of the bid-winning credit institutions or the State Bank’s Transaction Bureau shall put their signatures and affix seals on the facsimiled contracts, then send them to the sellers via computer networks and facsimile not later than 15.30 hrs on the bidding date.

6. The section for open-market operations (the State Bank’s Transaction Bureau) shall send such sale and redemption contracts via facsimile to the concerned sections of the Transaction Bureau and the State Bank’s branches before 16.30 hrs on the same day.

7. Sale and redemption contracts shall serve as basis for effecting the payment, delivery and reception of valuable papers between the State Bank and credit institutions in case of forward transactions.

Article 22.- Payment for and transfer of ownership right over valuable papers

1. Upon receiving the bidding result notices or sale and redemption contracts already signed by the parties, the seller shall have to transfer the ownership right over valuable papers to the purchaser, while the latter shall have to pay the money for purchasing valuable papers to the former. The payment for and transfer of ownership right over valuable papers shall be effected on the payment date.

2. In cases where a bid-winning credit institution that purchases valuable papers has not enough money to pay, the State Bank (the Transaction Bureau) shall make deduction from such bid-winning credit institution’s account at the State Bank to fully cover the payment for the bid-wining volume. If such deduction is still not enough to fully cover the payable amount, the State Bank shall cancel the unpaid bid-winning part.

3. On the date when the sale and redemption contract expires, the purchaser and seller shall effect the transfer of ownership right over valuable papers and make payment according to the parties’ commitments in such sale and redemption contract.

4. When the payment term is due, and the credit institution that has sold and committed to buy back valuable papers fails to make payment or fails to pay in full the payable amount, the State Bank (the Transaction Bureau) shall make deduction from such credit institution’s account at the State Bank to make up for the deficit. If after the above-said measure is applied, the payable amount is still not fully covered, the State Bank shall temporarily withhold the unpaid volume of valuable papers in a separate account. If 10 days after the payment term is due, the credit institution still fails to pay in full the payable amount, the State Bank shall sell the withheld volume of valuable papers to recover their capital. The payment shall be effected via the credit institution’s deposit account at the State Bank.

Article 23.- Handling of violations

Credit institutions participating in the bidding that commit for 3 consecutive times one of the following breaches shall be temporarily suspended by the State Bank from participating in the purchase and sale for a period of 3 months from the date the notice on the 3rd breach is sent:

1. Failing to adequately register a volume of valuable papers corresponding to that already registered for bidding (for cases where credit institutions sell valuable papers);

2. Having not enough money to pay for the bid-winning volume notified by the State Bank;

3. Failing to pay or failing to pay in full the payable amount when the payment term is due for cases where credit institutions sell and commit to buy back.

Article 24.- Reporting on the performance of open-market operations

After each transaction session, the State Bank’s Transaction Bureau shall make and send reports on the bidding result of such transaction session to the State Bank Governor, the Board for Management of Open-Market Operations, the Monetary Policy Department and the Credit Department.

Monthly, quarterly and annually, State Bank’s Transaction Bureau shall review and report on the performance of open-market operations in the period to the State Bank Governor, the Board for Management of Open-Market Operations and the concerned units.

Chapter III

IMPLEMENTATION PROVISIONS

Article 25.- Responsibilities of the units attached to the State Bank

1. The Credit Department:

a/ To provide information on the capital reallocation activities to the Board for Management of Open-Market Operations and the section for management of liquidity capital.

b/ To coordinate with the State Bank’s Transaction Bureau in determining the structure of valuable papers to be transacted through open-market operations.

2. The Monetary Policy Department:

a/ To manage, monitor and provide the results of forecast on liquidity capital of credit institutions regularly to the Board for Management of Open-Market Operations according to the Regulation on management of liquidity capital.

b/ To propose to the Board for Management of Open-Market Operations the volume of short-term valuable papers that need to be purchased or sold, the purchase or sale terms, and to project interest rates to be applied to the purchase or sale of valuable papers.

c/ To coordinate with the Credit Department and the State Bank’s Transaction Bureau in proposing the State Bank Governor to add new kinds of valuable papers to serve as instruments for open-market operations, or cancel certain existing ones.

3. The State Bank’s Transaction Bureau:

a/ To consider and recognize credit institutions as members to participate in open-market operations; to coordinate with the Banking Information Technology Department in providing for codes and passwords for conducting transactions via computer networks, facsimiles and codes of signatures of persons participating in transactions of open-market operations.

b/ To conduct transactions of purchasing or selling valuable papers with credit institutions.

c/ To carry out the registration, management and monitoring of valuable papers.

d/ To make payments for valuable papers.

e/ To promulgate and guide the procedures for the performance of open-market operations.

f/ To coordinate with the Credit Department and the Monetary Policy Department in providing advice to the Board for Management of Open-Market Operations on determining the structure, purchase or sale terms of valuable papers.

g/ To effect the delivery, reception and custody of valuable papers and to conduct the accounting and book-keeping activities according to regulations.

h/ To summarize, monitor and report information on open-market operations to the Board for Management of Open-Market Operations, the Credit Department and the Monetary Policy Department.

4. The Accountancy and Finance Department:

To guide the accounting and book-keeping procedures related to the open-market operations.

5. The Banking Information Technology Department:

To design software programs for open-market operations and organize the loading of such programs in computers, in order to ensure the safety and confidentiality of operations.

6. The State Bank’s branches:

a/ To effect the delivery, reception and custody of valuable papers, and to conduct the payment, accounting and book-keeping according to regulations.

b/ To notify the State Bank’s Transaction Bureau of the balance of custody accounts of valuable papers of credit institutions.

Article 26.- Amendments and supplements

The amendments and supplements to this Regulation shall be decided by the State Bank Governor.

APPENDIX NO. 01/TTM

REGISTRATION FOR PARTICIPATING TO THE OPEN MARKET OPERATION

To: The State Bank of Vietnam (The Credit Department)

Name of the Bank: ------------------------------------------------------------------------------

Address: ------------------------------------------------------------------------------------------

Telephone: ---------------------------------------------------------------------------------------

Telex:----------------------------------------------------------------------------------------------

VND deposit account: --------------------------- at -------------------------------------------

hereby registers the participation to the open market operation at the State Bank and undertakes to comply fully with provisions of the Regulation on open market operation.

We introduce the signatures and apply for the signature codes for following persons to participate to open market transactions:

Position :  Signature 1        Signature  2.

Competent persons:

1. Person:

2. Person:

Controller

1. Controller:

2. Controller:

Dealer:

1. Dealer:

2. Dealer:

APPENDIX NO. 02/TTM

NOTICE OF PURCHASE OF SHORT-TERM VALUABLE PAPER

Date:---------------------------------

To:-----------------------------------

Based on the Notice dated ------------ by the Executive Board of the open market operation, the Banking Operation Department of the State Bank gives hereby the Notice of purchase of short-term valuable paper with following main contents:

- Auction date:

- Mode of auction:

- Form of tender appraisal:

- Payment date:

The Director of the Banking Operation Department

(1) Interest rate announced by the State Bank in the event of auction by volume.

APPENDIX NO. 03/TTM

NOTICE OF SALE OF SHORT-TERM VALUABLE PAPER

Date:---------------------------------.

To:-----------------------------------

Based on the Notice dated ------------ by the Executive Board of the open market operation, the Banking Operation Department of the State Bank gives here by the Notice of sale of short-term valuable paper with following main contents:

- Auction date:

- Mode of auction:

- Form of tender appraisal:

- Payment date:

The Director of the Banking Operation Department

(1) Interest rate announced by the State Bank in the event of auction by volume.

APPENDIX NO. 04/TTM

REGISTRATION FOR THE PURCHASE OF SHORT-TERM VALUABLE PAPER

Date:---------------------------------

To: Banking Operation Department

Based on the Notice of sale of short-term valuable paper No. ----------dated-------------of the Banking Operation Department, ------------(name of the credit institution) gives hereby the Registration for the purchase of short-term valuable paper as follows:

(1) Auction for interest rate.

(2) Auction by volume

APPENDIX NO. 05/TTM

REGISTRATION FOR THE SALE OF SHORT-TERM VALUABLE PAPER

Date:---------------------------------

To: Banking Operation Department

Based on the Notice of purchase of short-term valuable paper No. ----------dated-------------of the Banking Operation Department, ------------(name of the credit institution) gives hereby the Registration for the sale of short-term valuable paper as follows:

 (1) Auction for interest rate.

(2) Auction by volume

APPENDIX 06/TTM
(prepared by the selling party)

THE SALE AND REPURCHASE AGREEMENT FOR SHORT-TERM VALUABLE PAPER

Date:---------------------------------

Based on the Decision No. 85/2000/QD-NHNN14 of the Governor of the State Bank on the issuance of the Regulation on the open market operation and the announcement of the winning results of the auction by the Banking Operation Department dated 9 March 2000.

The selling party:------------------------------------(hereinafter referred to as party A)

Address: -------------------------------------------------------------------------------------------

Tel:------------------------------------------------------Fax:--------------------------------------

Account No. ---------------------------------------------------------------------------------------

The purchasing party:------------------------------------(hereinafter referred to as party B)

Address: -------------------------------------------------------------------------------------------

Tel:------------------------------------------------------Fax:-------------------------------------

Account No. --------------------------------------------------------------------------------------

The parties hereto agree on the contents of the Agreement as follows (Form attached):

1. Party A agrees to sell short-term valuable to party B at the price of -----------(amount) for a period of-------. Party A shall be responsible for the delivery of short-term valuable paper to Party B and Party B shall be responsible to make full payment of the short-term valuable paper to Party A on-------------(date of payment).

2. Party A commits to repurchase above-mentioned short-term valuable paper at the repurchase price of --------------(amount) at the expiration of the Agreement. Party B shall be responsible to deliver above-mentioned short-term valuable paper to Party A and Party A shall be responsible to make full payment of the repurchase of the short-term valuable paper at----------------(the expiry date of the Agreement)

3. This Agreement shall be effective from ----------------. The two parties commit to comply with the agreed contents of this Agreements and provisions of the Regulation on open market operation issued in conjunction with the Decision No. 85/2000/QD-NHNN14 dated 9 March 2000 of the Governor of the State Bank.

Form attached to the Appendix No. 06/TTM

Note: Seal on the Fax copy