Has warned many times about corporate bond risks

At the meeting of the National Assembly Standing Committee on April 25, explaining and clarifying some of the issues raised by the delegates, Finance Minister Ho Duc Phuc said that regarding institutions, the Government has made three breakthroughs. The Ministry of Finance in 2021 advises the Government to issue 43 decrees and 126 circulars.

Finance Minister Ho Duc Phuc

“Today we promulgate this decree, but a few years later it is inadequate with reality and has to be corrected. We are currently amending the Decree on issue of private bonds. We have the Law on Securities and Decree 153, issued with access to issuing conditions and all conditions of the world.

However, after the re-issue showed the vulnerability, there were violations in practice, so it was necessary to tighten it. We have recognized this loophole. When I returned to the position of Finance Minister, I observed that this matter was flawed. I requested a warning in the mass media, issued 5 press releases and had 4 discussions on VTV, at the same time, there were press forums and newspapers reporting about risks to human health. issue private bond market of enterprises”, the Finance Minister expressed.

According to Mr. Phuc, the Ministry of Finance has had 3 documents to correct and request inspection. “Recently, we have taken serious action. We see this as an issue that needs to be dealt with in order to clean up the market and get it in order, but at the same time it has to correct the provisions of the law,” said Phuc.

Previously, the verifying agency said that in 2021, the real estate market information is incomplete, lacks transparency, and real estate prices increase abnormally in some places. The corporate bond market developed strongly but showed signs of being “hot”; There are many potential risks, there are enterprises “circumventing the law” to issue bonds in contravention of regulations.

Also at the session, National Assembly Chairwoman Vuong Dinh Hue cited press information reflecting that in 2021, corporate bond mobilization amounted to more than VND 700,000 billion, of which 44% were related to the real estate sector. In the past, businesses took bonds or borrowed money to pay off debt. But so far, borrowing has been tightened, along with the impact of the epidemic, leading to businesses not having cash flow to repay loans.

“When the debt is due, the enterprise must sell the whole project to pay the debt. But the project does not have enough legal basis to sell. If there is not enough legality, will anyone buy the project when the business is in trouble. If you can’t pay your debts, you’ll just default,” the National Assembly Chairman said.

According to Luan Dung