The Viet Nam State Treasury mobilised more than VND281.294 trillion (US$12.39 billion) through G-bonds by December 7, meeting the annual plan set by the National Assembly. — Photo vfpress.vn
The Viet Nam State Treasury mobilised more than VND281.294 trillion (US$12.39 billion) through G-bonds by December 7, meeting the annual plan set by the National Assembly.
Speaking at a press conference to review the State Treasury’s performance in 2016, held in Ha Noi yesterday, Deputy Director of the State Treasury’s fund management division Trinh Thi Van Anh attributed the success to Viet Nam’s macroeconomic stability, low inflation and interest rates in 2016.
Thanks to domestic economic stability, foreign investors were more interested in investment in Viet Nam, Anh said, adding that the proportion of foreign investors participating in G-bond trading in 2016 increased to 12 per cent from 8.5 per cent in 2015.
Besides this, she said, the Government’s timely revision on policies, including Circular 06/2016/TT-NHNN related to capital mobilisation, also contributed to the success of the G-bond issue in 2016.
Circular 06/2016/TT-NHNN increases the ratio of purchased, invested G-bonds to average short-term funds of the previous month, with the maximum ratio increase from 15 per cent to 25 per cent for State-owned commercial banks and to 35 per cent for foreign bank branches. The new regulation has made it easier for institutions to get access to G-bonds.
At the meeting, Nguyen Manh Cuong, head of State Treasury’s administration division, also reported that the State Treasury managed VND659.386 trillion of regular spending by the end of November, equal to 78.8 per cent of the annual estimate. The total was excluding funds for foreign loans, aid, additional expenditure and financial reserves.
The Ministry of Finance early this year planned to mobilise VND250 trillion from the G-bond issue in 2016. However, as the mobilisation target was met by September 15, the ministry revised the target, increasing it by VND31 trillion. - VNS