MoF working towards reaching bond target for 2015.
Twenty-year government bonds with a total value of VND3.45 trillion ($154 million) were issued in July, according to an announcement by the Ministry of Finance (MoF) on August 20.
As at August 14 the total value of bonds in the market was VND140.938 trillion ($6.29 billion). Government bonds totaled VND123.479 trillion ($5.5 billion), equal to 49 per cent of the target for 2015. Bonds guaranteed by the government totaled VND17.459 trillion ($779 million), representing 36 per cent of the 2015 target. Enterprise bonds totaled VND11.148 trillion ($487.86 million).
Regarding government bonds, MoF said it is researching two new types. Besides traditional bonds, where holders are paid interest periodically, the ministry aims to issue bonds in which holders are not paid interest periodically and another in which the interest rate is adjusted by the market.
Deputy Head of the Department of Banking and Financial Institutions at MoF, Ms. Phan Thi Thu Hien, said that from January to August mobilizing capital from bonds faced a number of difficulties. Over the remainder of the year, however, MoF will attempt to reach its targets.
She added that 80 per cent of bonds are held by commercial banks and the rest by insurance companies, securities companies, and investment funds.