Latest News about government bond
The Government plans to borrow over VND1.7 quadrillion ($73.2 billion) in 2021-2023 to meet the capital demand for socio-economic development, according to the public debt management plan for the next three years approved last week.
The size of the local Government bond (G-bond) market by the end of last month was equal to 25.1% of the country’s gross domestic product in 2019, marking a 12-fold increase over 2009.
The Government has proposed borrowing VND459.5 trillion (US$19.9 billion) next year to make up for the State budget deficit, increasing regular expenditures and social insurance debts.
Commercial banks are rushing to issue bonds to balance short-term and long-term capital, and ensure their capital adequacy ratio.
Since issuing corporate bonds has become easy thanks to open regulations, it is necessary to tighten control over bond issuance.
The State Bank of Vietnam (SBV) will hold its benchmark refinancing and discount rates at 6.25% and 4.25%, respectively, in addition to maintaining its 14% credit growth target for the remainder of 2019, experts forecast.