VGP – International bonds are issued only to raise money for national-level key works and effective projects, according to a new decree of the Government.
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International bonds help to raise fund for national key projects |
The Government just issued Decree 53/2009/N?-CP regulating such activities as taking loans and paying debts to foreign partners through issuing governmental or corporate bonds on international financial markets.
The decree, which will come into effect on July 30, stipulates that governmental and corporate bonds are categorized as international bonds (IBs).
Governmental bonds are issued to mobilize investment capital for national-level key works and effective projects which need foreign currencies.
Besides, the capital from these bonds will be used to restructure government-managed debts.
The Ministry of Finance will work out the plan on IB issuance and submit the plan to the PM for approval. The value of each issuance must be at least US $500 million.
Corporate bonds are issued on international markets as bonds with or without governmental guarantee.
An enterprise which wants to issue IBs must have its own issuance plan approved by competent agencies.
A State-run enterprise, if issuing IBs without governmental guarantee, must have the credit ratings equal to or higher than the national ones.
By Hoang Phuong
(www.vietnam.gov.vn)
