The government accelerates capital mobilisation in Q1/2021

23-Jan-2021 Intellasia | BizLIVE | 6:02 AM Print This Post

The State Treasury has issued Official Letter No.233/KBNN-QLNQ announcing the plan to invite bids for government bonds in the first quarter (Q1) of 2021.

Accordingly, the government bond bidding plan in Q1 of 2021 has a total issuance value of 100 trillion dong, a sharp increase of 40 trillion dong compared to the 60 trillion dong in the same period of last year.

Specifically, the issuance plan in Q1 of 2021 is expected to be five trillion dong for five-year term, five trillion dong for seven-year term, 35 trillion dong for 10-year term, 35 trillion dong for 15-year term, 10 trillion dong for 20-year term, and 10 trillion dong for 30-year term.

Preliminary statistics showed that in 2020, the State Treasury mobilised about 330 trillion dong, completing 127 percent of the initial plan and 110 percent of the adjusted plan in 2020, far exceeding the 198 trillion dong recorded in 2019.

According to analysts, this result is mainly thanks to two main supporting factors, including the abundant market liquidity (the State Bank of Vietnam (SBV) cut operating rates and injected a large amount of dong into the market, and credit growth was slow), and the large volume of matured government bonds which created a source of re-investment so the State Treasury’s capital mobilisation still achieved good results.

In the early sessions of 2021, the State Treasury offered a moderate amount of issuance in the range of six to 10 trillion dong per session. In most of the sessions, the entire amount of offer was fully mobilised with interest rates following a downward trend.

 

Category: Finance, Vietnam

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