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Vietnam temporarily stops issuing int’l bonds
Finance Minister Vu Van Ninh said that Vietnam will temporarily stop issuing international bonds until favourable conditions come along.
In addition, the Government also decided to reduce bonds-funded investment by 25 percent, the minister added.
In the first issuance of bonds on the international market at the end of 2005, the Vietnamese Government bonds attracted 255 investors with buying orders amounting to 4.5 billion USD against the total issued value of 750 million USD.
At the June 19 online forum with international investors, Minister Ninh said the issuance of bonds on the international market in addition to mobilizing more resources for national development, aims to help Vietnamese businesses get access to new capital source.
Therefore, in June 2007, the Ministry of Finance asked the Government to approve a resolution to issue international bonds worth 1 billion USD with the maturities of 15-20 years to finance projects by the Vietnam Oil and Gas Group, the Vietnam National Shipping Lines, the Song Da Construction Corporation and the Vietnam Machinery Erection Corporation.
However, the current situation is not suitable for the issuance.
The minister said that the interest rate of Government bonds will be reviewed in the context of rising banking interest rates in order to be more attractive to investors.
VNA
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