“There is only the case that Tan Hoang Minh has not been able to pay the bond debt”
In the question-and-answer session this afternoon (June 8), delegate Truong Trong Nghia (from Ho Chi Minh City’s delegation) asked whether or not there was “looseness” in management in the issuance of corporate bonds?
“Recently, the Ministry of Finance inspected 358 private bond issuers, 57 enterprises suffered losses, 45 enterprises had debt/equity ratio greater than 10. Out of 20 enterprises, In the real estate industry, the most bond issuers in the past year were those that issued tens of times more than equity.
Some businesses issue bonds with interest rates up to 13%. There are enterprises with equity of 153 billion VND but issued 7,200 billion VND. There are companies that issue VND 7,700 billion of bonds while equity is only VND 270 billion,” Nghia said.
From this issue, the Ho Chi Minh City delegation asked a question about managing the number of issued corporate bonds so that there are no negative consequences such as the housing crisis?
Delegate Truong Trong Nghia (Ho Chi Minh City delegation)
Answering the question of delegate Nghia, Minister of Finance Ho Duc Phuc said that with corporate bonds, the question arises whether these corporate bonds can’t be repaid? I would like to report, there is only one case where Tan Hoang Minh could not pay the debt when canceling the transaction, and other businesses were able to pay the debt when it was due. This means that this line of corporate bonds still circulates normally.
“We are the law enforcement agency, we must comply with the law. Based on the Law on Securities and Decree 153, the privately issued bonds are almost unlicensed and unmanaged. When we discuss legislation and when we make it, we empower business. This means that enterprises have the right to freely conduct business and issue bonds. But when it is too much, it is a problem that state agencies need to manage. That is the legal approach,” said Mr. Phuc.
According to Mr. Phuc, in the securities law, there are no conditions for issuance, whether the business needs to be profitable or need collateral, so it is not possible to stipulate the conditions for the issue. Therefore, when complying with the provisions of the law, the enterprise will issue bonds and then pay the bonds but must issue them in accordance with the order and provisions of the law.
“The recent cases we have handled are all cases of issuance not in accordance with the provisions of the law,” said the Minister of Finance.
There is no policy to tighten or limit corporate bonds
Earlier this morning, in the question-and-answer session, delegate Nguyen Huu Thong (Binh Thuan delegation) asked the question, many cases of misconduct on the stock market and corporate bond issuance, according to the Minister, is a The main source of the above is the weakness and inadequacy of the authorities?
“So what solution does the Minister have to make the market healthy instead of tightening regulations in the spirit of “if you can’t manage it, then it’s forbidden” to seriously affect the development of the market?”, delegate Thong question the Minister of Finance.
Minister Phuc emphasized that at present, there is no policy on tightening or restricting corporate bonds.
Responding to delegate Thong, Minister Ho Duc Phuc emphasized that at present, there is no policy on the issue of tightening or restricting corporate bonds. Because, in fact, corporate bonds are also a very effective capital mobilization channel together with commercial banks to mobilize capital for businesses, contributing to production and business of the economy.
However, this mobilization must be in accordance with the law, secondly, this mobilization must be transparent, thirdly, it must not take advantage of this mobilization to use money for wrong purposes, put this money in real estate or other purposes. other purposes without contributing to the economy.
“Currently, the size of corporate bonds is about 1,374 trillion VND, accounting for about 15% of GDP. Compared with the strategic target promulgated by the Prime Minister, we must achieve 20% by 2025 and 25% by 2030.
This is only 15%, which is within the allowable range. Compared to surrounding countries, our corporate bond mobilization is at the lowest level and there is room for implementation, however, the mobilization must be transparent and must be in accordance with the law”, said Minister of Finance. main said.
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