REVIEW
of
FINANCE -
Feb. 2018
33
system, the Ministry of Finance will concentrate
on synchronously implementing the solutions
and tasks assigned to it in the Bond Market
Development Roadmap for the 2017-2020
period, vision to 2030. Specifically:
Firstly,
on the policy framework:
It will continue to improve the policy
framework to develop a stable and sustainable
bond market in line with international trends
and practices, creating a link between the capital
market and the monetary and credit markets.
At the same time, to increase the public and
transparency in the market, to create favorable
conditions for the Government to raise capital;
to support the market development according to
international practices; It focuses on developing
a system of market makers with full obligations
and rights to increase liquidity in the market.
Diversifying the term issue of government
bonds, continuing to restructure investors to
develop the market and improve the ability to
mobilize capital for the state budget. Some main
solutions include:
- Building and submitting to the Government
for issuance of a Decree regulating the issuance,
registration, depository, listing, transaction of
the government’s debt instrument to improve the
government’s mobilization mechanism in both
the primary and secondary markets; Establish
a system of market makers in the bond market
with full obligations and powers in accordance
with international practices.
- Developing a circular guiding on issuance
and exchange of Government bonds on the
basis of the Government’s Decree on issuance,
registration, depository, listing and transaction
including the stock market and the money
market- bank credit in line with the guidelines
of the Party, the National Assembly and the
Government.
Secondly,
developing the bond market in both
breadth and depth, ensuring system security,
accessing international practices and standards,
making the market become an important
medium and long-term capital mobilization
channel for the economy.
Thirdly,
trying hard to increase the size and
volume of capital mobilization through the
market to meet the requirements for raising
funds for the state budget in 2018 and the
following years; expanding the system of
investors, especially institutional investors,
creating sustainable demand for the market.
On the basis of evaluating limitations and
shortcomings in the operation of the bond
market; difficulties and challenges in 2018, to
complete the plan to mobilize capital for the
state budget; As well as to develop the bond
market into the standard market of the financial
FIGURE 2: GOVERNMENT BONDS INTEREST RATES 2017 (%)
Source: Banking and Finance Department (Ministry of Finance)
Table 1: BIDDING FOR GOVERNMENT BONDS IN THE PRESIDENTIAL MARKET
Bond
term
Number
of auction
sessions
Value
Registered value
Winning bid
Bid interest
rate
(%/year)
Winning
yield
(%/year)
5 years
62
73.650.000.000.000 222.125.000.000.000 44.044.000.000.000
4,2-6,2
4,48-5,5
7 years
38
46.350.000.000.000 117.211.000.000.000 34.664.000.000.000
4,75-6,1
4,8-5,55
10 years
51
45.938.000.000.000 104.977.000.000.000 35.454.000.000.000
5,1-7,02
5,28-6,8
15 years
42
40.873.000.000.000 98.911.800.000.000 33.416.300.000.000
5,5-8,0
5,75-7,7
20 years
20
22.850.000.000.000 61.618.264.000.000 18.899.000.000.000
5,8-8,2
5,82-7,7
30 years
27
35.200.000.000.000 92.147.877.300.000 27.838.359.300.000
6,1-8,4
6,1-7,98
Total
240
264.861.000.000.000 696.990.941.300.000 194.315.659.3.000
Source: HNX
