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Vietnam sells 2 bln dong govt bond at auction
Vietnam's State Treasury has for the first time since late February been able to sell a tiny government bond worth VND2 billion ($121,100) at an auction, the Hanoi stock exchange said in a statement.
The July 2010 bond was sold at auction Friday to one bidder at an annual yield of 11 percent.
The State Treasury had sought to raise VND300 billion worth of two-year bonds to finance infrastructure projects.
The government had failed to sell any bonds for the past seven auctions in a row.
Its last successful auction was on Feb. 28 when it raised VND700 billion worth of two-year debt at an annual yield of 7.68 percent.
Banks, frequent buyers of government bonds, have been struggling to raise dong funds as the central bank tightened monetary supply by raising interest rates and ordered banks to buy debt to rein in inflation that hit an annual rate of 26.8 percent in June.
Prime Minister Nguyen Tan Dung said last week Vietnam would further cut money supply to banks to help curb inflation.
The central bank planned to cap Vietnam's credit growth this year at 30 percent after a surge of 54 percent in 2007.
Ratings agencies have downgraded their outlook on Vietnam's sovereign ratings to negative noting that economic imbalances were greater than anticipated and policies had not dealt quickly or strongly enough with inflation.
Thanhnien
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