ADB financial expert calls for improvement of credit guarantee system

Vietnam should adopt measures to increase the efficiency of government credit guarantees and agree upon the minimum use levels of infrastructure in an effort to accelerate its securitisation process, according to a leading financial expert.

The Asian Development Bank (ADB)’s chief consultant, Jim Turnbull, made this suggestion at a securitisation seminar, which was jointly organised by the State Bank of Vietnam (SBV) and the ADB in Hanoi on Feb. 26.

A well performing capital market and a firm legal foundation are considered some of the other factors necessary for the development of the nation’s securities market, Mr. Turnbull added.

According to the ADB expert, the process of securitisation will require closer monitoring and higher asset guarantee ceilings in the years to come.

Meanwhile, the Vietnamese Deputy Minister of Justice, Nguyen Thuy Hien, emphasised the need to improve the legal framework governing securities transactions and the registration for securities transactions in Vietnam in order to create an important basis for securitisation.

Participants in the seminar focused their discussion on the stable interest rates for property projects and the potential of the housing market as advantages enjoyed by Vietnam in developing its securitisation procedures.

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