The Government has just issued Decree No. 83/2023/ND-CP amending and supplementing a number of articles of Decree No. 95/2018/ND-CP dated June 30, 2018 on issuance, registration, depository, listing and trading of Government debt instruments on the securities market. This Decree takes effect from January 15, 2024.
According to Decree No. 83, when issuing private government bonds, the State Treasury can choose commercial banks and foreign bank branches as agents, instead of selling directly and paying buyers as before.
Banks are about to be appointed as agents selling government bonds. (Photo: Government)
Banks wishing to become agents selling government bonds must meet the conditions of being commercial banks or foreign bank branches legally established and operating in Vietnam.
In addition, banks must have the function of providing bond issuance agency services according to the provisions of the Law on Credit Institutions and instructions of the State Bank of Vietnam.
At the same time, banks must have an operating network to meet the distribution and payment of government bonds; the plan for organizing the distribution and payment of bonds must meet the requirements of the issuing organization for each issuance.
This year, the State Treasury aims to mobilize VND400 trillion through government bonds, including the amount issued for Vietnam Social Security. This figure is equal to the initial issuance plan last year and nearly double after adjusting the target.
According to data from the Hanoi Stock Exchange (HNX), by the end of October, the State Treasury had mobilized more than VND264,359 billion, reaching 66% of the annual plan. The average issuance term was 12.33 years; the average maturity was 9.19 years and the interest rate was 3.44% per year. In the fourth quarter, the State Treasury will auction an additional VND130,000 billion worth of bonds.
The Ministry of Finance said that this agency will closely monitor the collection and disbursement of public investment capital and the principal repayment plan of the central budget, to mobilize government bond capital with an appropriate volume.
Cong Hieu
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