The Ministry of Finance said that in 2022, the corporate bond market will fluctuate strongly due to violations of the law. In addition, the macro economy and domestic and foreign financial markets will develop complicatedly, interest rates will increase, and at times, the economy's liquidity will be difficult.
Faced with that situation, the Government and the Prime Minister have given very strong directions to stabilize the market, such as synchronously implementing macroeconomic stabilization policies.
Outstanding corporate bonds are about VND1.03 trillion, accounting for 10.8% of GDP. (Photo: VNB)
At the same time, it is necessary to properly manage fiscal policies such as reducing, extending, and deferring taxes, supporting affected subjects, and accelerating the disbursement of public investment. The government also removes difficulties for businesses, including the real estate market.
The Government also stepped up propaganda to stabilize market sentiment and strictly handled cases of incitement and impact on social security; closely monitored the market situation.
In particular, recently, the Government has issued Decree No. 08 and established working groups on banking, securities, corporate bonds and real estate to propose solutions to stabilize and develop the market. Accordingly, the market has gradually stabilized again.
According to the Ministry of Finance's report, from the beginning of the year to July 21, 36 enterprises issued bonds with a volume of VND 61,200 billion, down 78% compared to the same period in 2022.
Of which, real estate enterprises account for 55%, equivalent to 33,000 billion VND. 60.91% of issued bonds have secured assets; the volume of early repurchase is 130,400 billion VND, 1.65 times higher than the same period in 2022.
The Ministry of Finance said that since Decree No. 08 took effect, the volume of corporate bonds issued was VND60,300 billion, accounting for 99% of the volume since the beginning of 2023.
Outstanding corporate debt as of July 21, 2023 is about VND 1,030 trillion, accounting for 10.8% of GDP in 2022, equal to 8.3% of the total outstanding credit of the economy.
Regarding the issue of maturing bonds, the Ministry of Finance is continuing to monitor the information disclosure of enterprises, working directly with enterprises with large maturing bonds and requiring enterprises to be responsible to the end for fully paying bond obligations to investors according to the committed terms and conditions.
In the coming time, the Ministry of Finance will conduct a comprehensive review and study reports to competent authorities to amend relevant legal documents (Securities Law, Enterprise Law, Credit Institutions Law) regarding regulations on conditions for issuing private corporate bonds; issues of related persons, cross-ownership between credit institutions, the stock market and enterprises.
Review, complete and improve the effectiveness of the implementation of legal regulations on corporate bankruptcy so that enterprises have sufficient procedures to carry out bankruptcy in an orderly manner, contributing to ensuring the healthy and sustainable operation of the market.
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