Banks allowed to buy back corporate bonds from April 24

On April 23, 2023, the State Bank of Vietnam issued Circular No. 03/2023/TT-NHNN stipulating the suspension of the implementation of Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN dated November 10, 2021 regulating the purchase and sale of corporate bonds by credit institutions and foreign bank branches.

The issuance of Circular No. 03/2023/TT-NHNN aims to contribute to increasing liquidity, removing difficulties, and promoting the development of the corporate bond market in the current difficult situation according to the Government's policy and the Prime Minister 's direction.

This Circular takes effect from April 24, 2023.

According to the new Circular issued by the State Bank, credit institutions are allowed to buy back corporate bonds that are not listed on the stock market or not registered for UPCoM trading that the credit institution has sold when meeting certain conditions. Illustrative photo

Clause 11, Article 4 of Circular No. 16/2021/TT-NHNN dated November 10, 2021 stipulates that within 12 months after selling unlisted corporate bonds on the stock market or not registered for trading on the Upcom trading system (hereinafter referred to as unlisted corporate bonds), credit institutions are not allowed to purchase unlisted corporate bonds that the credit institution has sold and/or unlisted corporate bonds issued in the same lot/same issuance period as the unlisted corporate bonds that the credit institution has sold.

After 12 months from the sale of unlisted corporate bonds, credit institutions are only allowed to purchase unlisted corporate bonds that the credit institution has sold and/or unlisted corporate bonds issued in the same lot/same issuance period as the unlisted corporate bonds that the credit institution has sold when:

That means, from April 24, 2023, credit institutions are allowed to buy back corporate bonds that are not listed on the stock market or not registered for UPCoM trading that the credit institution has sold when meeting certain conditions.

Source: https://www.congluan.vn/ngan-hang-duoc-phep-mua-lai-trai-phieu-doanh-nghiep-tu-ngay-24-4-post245026.html