The State Treasury will cut down its bond issuance this year to VND183.3 trillion (US$8 billion), a decrease of 26.7 per cent compared with its initial projection, the agency has announced.

It will continue focussing on long terms to extend the average maturity of bonds and ease the payment obligations for the Government.

Five-year maturity accounts for 43.8 per cent of the total issuance, valued at VNS80.3 trillion. Seven-year maturity followed with VND25 trillion. The 15-year and 30-year bonds are estimated at VND20 trillion and VND15 trillion, respectively.

In December 2016, the State Treasury targeted bond sales of VND250 trillion in 2017, lower than the total issuance of VND281 trillion in 2016.

However, during the issuance process, the State Treasury may adjust the volume of bonds and their maturity dates in line with market conditions, the agency said.

According to market experts, such reduction in Government bond issuance by the Ministry of Finance could be a measure to stimulate the market, as well as help the Government raise capital at low interest rates.

Interest rates are forecast to remain stable this year, at around 5 per cent per year for five-year bonds and over 6 per cent for the 10-year maturity bonds.

As of February 17, the State Treasury has issued bonds worth nearly VND18.6 trillion. – VNS