State Treasury to issue VNĐ127 trillion of Government bonds in Q1 2024

The State Treasury will coordinate with the ministry’s relevant agencies to organise the Government bond issuance on the domestic market to raise capital for the State budget. Photo thoibaonganhang.vn

HÀ NỘI — The Ministry of Finance has assigned the State Treasury to issue VNĐ127 trillion of Government bonds in the first quarter of 2024.

Accordingly, the State Treasury must preside over and coordinate with the ministry’s relevant agencies to organise the issuance of the bonds on the domestic market to raise capital for the State budget.

The State Treasury said it will closely follow the assigned capital mobilisation plan and promptly propose to the Ministry of Finance solutions to raise capital from the Government bond issuance with appropriate volume, term and interest rate to ensure sufficient mobilisation.

In 2023, the State Treasury proactively advised the Ministry of Finance on solutions to deploy capital mobilisation at reasonable costs to meet the capital needs of the State budget under the context of many fluctuations in the world economic situation and slow public investment capital disbursement. It issued Government bonds in accordance with the progress of State budget collection, disbursement of public investment capital, the need to repay due principal, and market conditions.

The Government bond issuance was implemented by bidding method through the Hanoi Stock Exchange to ensure publicity and transparency. Terms of the issued bonds were flexible with a focus on long terms of five years or more to harmonise debt repayment obligations and avoid putting pressure on the State budget.

The State Treasury also continued to restructure the Government bond debt portfolio in the direction of extending issuance terms to ensure an average issuance term target of nine to 11 years according to Resolution No. 23/ 2021/QH15 and Resolution No. 43/2022/QH15 of the National Assembly.

In 2023, the State Treasury raised nearly VNĐ298 trillion in Government bonds, reaching 98 per cent of the plan assigned by the Ministry of Finance. The average issuance term was 12.6 years with an average issuance interest rate of 3.21 per cent per year.

The total payment volume of principal and interest on Government bonds last year was VNĐ185 trillion, of which principal was more than VNĐ101 trillion. — VNS