Vietnam govt to resume less-than-5-year bond issuance next month

Minh Tam

08:58 10/10/2015

BizLIVE - The Vietnamese government will ask for the National Assembly’s permission to resume issuing dong-denominated bonds having terms shorter than five years starting next month amid struggling budget revenue.

Vietnam govt to resume less-than-5-year bond issuance next month

A sample of Vietnamese government bond. (Source: Internet)

The State Treasury of Vietnam will restart to sell less-than-five-year securities as a parliamentary decision dated November 2014 requiring the government to issue bonds of five years and longer only has dampened appetite for government debt.
The treasury has raised a total of 98.77 trillion dong from dong-denominated bond sales in the year to date, versus a plan to issue 250 trillion dong in debt this year.
Banks, which now hold 80%-plus of outstanding government bonds, have reduced purchase of Vietnamese government debt for fear of liquidity risk and focus on lending to the economy. 

MINH TAM