Decree No. 97-656 of May 7, 1997 Fixing the Subscription Conditions for Treasury Bills by Auction

Decree No. 97-656 of May 7, 1997 fixing the subscription conditions for Treasury bills by auction The Prime Minister, Head of Government, Having regard to the Constitution, Having regard to Law No. 63-015 of July 15, 1963 on general provisions regarding public finances and its amending texts, Having regard to Law No. 95-030 of February 22, 1996 on the activity and supervision of credit institutions, Having regard to Decree No. 68-080 of February 13, 1968 on the general regulation of public accounting and its amending text, Having regard to Decree No. 93-218 of April 21, 1993 fixing the subscription conditions for Treasury bills by auction, In Council of Ministers, Decrees:
Article 1.- The Vice-Prime Minister in charge of Finance and the Economy is authorized, under the conditions set by this Decree, to issue short-term and medium-term Treasury bills in national currency subscribed through current accounts.
Art. 2.- The market for new issuances, known as the primary market, is reserved for approved market intermediaries and eligible subscribers to this market. Market intermediaries are institutions selected to ensure the placement and trading of Treasury bills with the public. An agreement will be established to define the reciprocal obligations between the intermediary and the Treasury. The status of intermediary is granted by the Ministry of Finance, which publishes the list of intermediaries by order. Other subscribers wishing to act on their own behalf may be eligible for the primary market. The eligibility conditions for these other subscribers in the primary market are set by order of the Vice-Prime Minister in charge of Finance and the Economy. Art. 3.- The market where already issued bills are traded, or the secondary market, is open to all economic agents. Art. 4.- A centralizing body is responsible for:

• managing securities on the primary market;
• settling operations in accordance with the delivery/payment principle;
• centralizing all operations;
• publishing market rates.
  This role is performed by the Central Bank.
  Art. 5.- Treasury bills carry a pre-deducted interest represented by the difference between the offered purchase price and the corresponding nominal value. Offers are fulfilled in ascending order of the proposed rates. The subscriber offering the lowest rate will be served first at the offered price, up to the amount requested by the Treasury. The allocation of the marginal tranche will be made pro rata to the offers. Accepted bids are served at the requested price. Art. 6.- The Treasury publishes in advance a quarterly issuance schedule with announcements of maturities and amounts to be collected. Art. 7.- Treasury bills subject to this Decree are subject to the same tax provisions as similar investments. Art. 8.- The practical implementation details of this Decree will be set by order of the Vice-Prime Minister in charge of Finance and the Economy. Art. 9.- All provisions contained in Decree No. 93-218 of April 21, 1993 fixing the subscription conditions for Treasury bills by auction are hereby repealed. Art. 10.- The Vice-Prime Minister in charge of Finance and the Economy is responsible for the execution of this Decree, which will be published in the Official Journal of the Republic. Done at Antananarivo, on May 7, 1997. By the Prime Minister, Head of Government:
  Pascal RAKOTOMAVO
  The Vice-Prime Minister in charge of Finance and the Economy, Tantely ANDRIANARIVO Top of Page