Enterprises issuing bonds must have the obligation to pay to investors.

The number of businesses that are slow to pay their bonds is growing.

In a recent report by VNDIRECT Securities Joint Stock Company, in June 2023, the value of bonds due to maturity reached its highest "peak" of the year, with a total amount of up to 35,530 billion VND. This figure has doubled compared to May 2023.

A recent report by the Hanoi Stock Exchange (HNX) shows that the number of businesses that are late in paying their debts is increasing. Specifically, by the end of May 2023, there were about 62,000 businesses on the list of businesses that were late in paying interest or principal on corporate bonds.

It is estimated that the total outstanding bond debt of these enterprises is about 157,710 billion VND, accounting for about 14.4% of the outstanding individual corporate bond debt in the whole market. Of which, the group of real estate enterprises with slow payment alone accounts for 11.3% of the outstanding debt of the whole system.

The number of businesses that are slow to pay their bond debt is increasing. (Photo: TM)

This unit also estimates that more than VND45,200 billion of corporate bonds of enterprises on the list will mature in 2023, accounting for about 19.4% of the total maturity value of the entire market for the year.

In the document sent to HNX, enterprises that are slow to pay their debts to bondholders (bond investors) have given various reasons to "justify". For example, some real estate enterprises said that tightening credit and unfavorable developments in the real estate market have led to the delay in paying their debts to bondholders. Many experts believe that enterprises that borrow must pay back, and giving reasons to "justify" the delay in paying their debts is unacceptable.

Regarding this issue, Mr. Nguyen Hoang Duong, Deputy Director of the Department of Finance for Banks and Financial Institutions ( Ministry of Finance ) said that recently, due to difficulties in the domestic and international markets, bond-issuing enterprises have had difficulty in fulfilling their obligations to pay bonds when they are due.

In particular, in recent times, a number of scandals related to the corporate bond market have affected market sentiment, making it difficult for businesses to issue new bonds to continue production and business as well as pay off maturing bonds.

In that context, the Ministry of Finance has submitted to the Government Decree No. 08/2023/ND-CP amending and supplementing a number of provisions of decrees on individual corporate bonds to resolve temporary difficulties and restore confidence in the corporate bond market.

In fact, since Decree 08 was issued, many enterprises have been able to issue bonds and have a legal basis to restructure, pay, and extend bonds.

According to Mr. Nguyen Hoang Duong, the Government, Government agencies and the Ministry of Finance have implemented many solutions such as: Stabilizing market liquidity, solving capital difficulties for the economy, policies to reduce lending interest rates for businesses to access capital sources... to promptly remove difficulties for the market, create conditions for businesses to continue to access the market and increase debt repayment capacity.

Mr. Nguyen Hoang Duong affirmed that the Ministry of Finance pays special attention to the issue of corporate bonds. The Ministry also regularly issues documents urging enterprises with obligations to pay bonds to be responsible to the end. In case of difficulties in payment, it is necessary to balance the source of money to pay the debt and proactively negotiate with bondholders to restructure the debt.

At the same time, the Ministry of Finance has recommended that businesses proactively disclose and make information transparent so that investors can grasp the business situation, thereby having a basis for making investment decisions and restoring confidence in the market.

The Ministry of Finance has also closely coordinated with the Ministry of Information and Communications and the Ministry of Public Security to proactively disseminate policies on bonds, increase investor confidence, and at the same time, handle cases of spreading false information that negatively affect market operations.

"Hopefully, with the solutions that have been implemented and the efforts from businesses, along with a better macroeconomic situation and better access to capital, businesses will gradually restructure their debts and fulfill their obligations to investors," said Mr. Duong.

Enterprises issuing bonds must have the obligation to pay to investors.

Meanwhile, Mr. Nguyen Duc Chi, Deputy Minister of Finance, affirmed: Enterprises issuing bonds must have the obligation to pay investors according to the provisions of law. Therefore, the Ministry of Finance has promptly issued instructions for enterprises to be responsible for what they have committed to bondholders.

Mr. Nguyen Duc Chi, Deputy Minister of Finance, emphasized that enterprises issuing bonds must have the obligation to pay investors according to the provisions of law. (Photo: VV)

"The State's consistent principle is to protect the interests of bondholders, and the legal regulations are also very clear. Therefore, businesses must be responsible to the end in paying their debts," Deputy Minister Nguyen Duc Chi emphasized.

According to the Deputy Minister, at this time, corporate bonds still face some difficulties, one of which comes from within the enterprise itself.

"At the same time, difficulties also come from the economic situation, the production and business situation of the business community also has problems, including businesses issuing bonds. Therefore, to overcome these difficulties, there must be synchronous solutions to stabilize the macro economy, stabilize production, and promote economic growth," said Mr. Chi.

In the past, in such a difficult context, with the Government's drastic solutions, macroeconomic stability was maintained and major balances of the economy were ensured.

"With timely and practical solutions and macroeconomic policies as a solid foundation to continue bringing the economy back to production and business orbit and restoring the market," the Deputy Minister of Finance expected.

Source: https://www.congluan.vn/doanh-nghiep-phat-hanh-trai-phieu-phai-co-nghia-vu-thanh-toan-den-cung-voi-nha-dau-tu-post251953.html