Khanh Hoa issues 500 billion VND in government bonds

On November 27, information from the People's Committee of Khanh Hoa province said that it had just announced information on issuing local government bonds of Khanh Hoa province in 2023.

Accordingly, local government bonds issued by the People's Committee of Khanh Hoa province aim to ensure the balance of development investment capital to implement programs and projects under the public investment plan approved by the Provincial People's Council in accordance with the provisions of the Law on Public Debt Management and the State Budget Law. Bonds are issued to offset local budget deficits. The source of bond repayment is guaranteed from the provincial budget. The use of capital is guaranteed according to the provisions of the State Budget Law on the principles of proper purpose, thrift and efficiency.

According to the announcement, the maximum bond issuance volume is 500 billion VND, with a term of 10 years and a bond face value of 100,000 VND. The principal and interest payment method is as follows: Pay the principal once upon maturity for each issuance; pay interest periodically once a year.

Khanh Hoa Provincial People's Committee can buy back bonds before maturity to reduce debt obligations or to restructure debt. In addition, the Provincial People's Committee can also exchange bonds to restructure debt. The process of buying back and exchanging bonds is carried out according to the guidance of the Ministry of Finance .

Finance - Banking - Khanh Hoa issues 500 billion VND in government bonds — Khanh Hoa Provincial People's Committee will issue VND500 billion worth of local bonds with a term of 10 months in early December 2023. Photo: TN

According to the announcement, the expected bond issuance date is December 4, conducted by auction at the organization conducting government debt auctions.

The source of capital for payment of principal and interest of bonds is guaranteed from the budget of Khanh Hoa province. Khanh Hoa Provincial People's Committee commits to arrange the budget to pay principal, interest and bonds fully and on time.

Previously, in December 2022, the 7th term People's Council of Khanh Hoa province held the 8th session to review, discuss and pass a number of important resolutions to develop the socio-economy in the province. At the session, delegates passed a Resolution approving the Preliminary Project on issuing local government bonds in Khanh Hoa province in 2023. Accordingly, a maximum of 1,000 billion VND in local government bonds will be issued, with a bond face value of 100,000 VND/bond.

Chau Tuong

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