Can Tho approves project to issue 2,000 billion VND in local government bonds

Can Tho issues 2,000 billion VND in local government bonds to carry out many key projects, including renovating 5 traffic intersections that are causing serious traffic jams.

Can Tho City People's Council delegates passed many resolutions at the closing session, including a resolution on issuing VND2,000 billion in local government bonds - Photo: TRUNG PHAM

At the closing session of the Can Tho City People's Council meeting on December 12, delegates voted to pass a resolution approving the project to issue local government bonds in Can Tho City.

The maximum volume of bonds issued is VND 2,000 billion, expected to be issued in 2025 (after receiving consensus from the Ministry of Finance).

The face value of the bond is 100,000 VND, with two terms of 10 years and 15 years. The issuance interest rate is decided by the City People's Committee based on the interest rate framework announced by the Ministry of Finance and the market situation at the time of issuance.

The source of capital for payment of principal, interest, fees and other costs related to local government bonds is guaranteed from the city budget. The People's Committee of Can Tho City commits to arrange the budget to pay the principal and interest of bonds in full and on time.

According to the resolution, the purpose of issuing the above bonds is to ensure the balance of development investment capital, including repayment of principal of ODA loan projects with outstanding debt and implementation of key projects of the city.

These key projects include: the western beltway of Can Tho city, the project to upgrade 5 key traffic intersections in the city, the Can Tho City Library, the road connecting the access road to Vam Cong bridge to Vinh Thanh Industrial Park and serving the construction of a number of resettlement areas.

Source: https://tuoitre.vn/can-tho-thong-qua-de-an-phat-hanh-2-000-ti-dong-trai-phieu-chinh-quyen-dia-phuong-20241212142314844.htm