The Hanoi Stock Exchange has introduced the second version of the
Government bond trading system, which will be used for the first time from
March 18 when Circular 234/2012/TT-BTC takes effect.
The system was upgraded in
response to provisions in the circular concerning risk management and
repurchase agreement (repo) trading. A repo agreement occurs when the selling
party agrees to repurchase bonds in the future.
The new version integrates bond
and treasury bill trading, information systems and a yield curve.
The Government bond market has
actively contributed to investment resources for both the State budget and
financial institutions this past year, said Deputy Minister of Finance Tran
Xuan Ha.
In addition, the liquidity of the
market improved significantly, boosting capital turnover and creating
conditions for short term capital to develop into long-term funding, which will
help the domestic economy, Ha said.
Government bonds increased in
value twice last year, totalling nearly VND67.6 trillion ($3.2 billion). Bond
yields declined over 2011 and were 1-2 per cent lower than deposit rates. The
deployment of the first bond trading system in August created an effective link
between issuing organisations, managing agencies and investors.
This year, the Government expects
to mobilise a total of VND150 trillion ($7.1 billion) through bonds, including
VND90 trillion ($4.2 billion ) to address the budget deficit. The remainder
will go towards investment projects.
QĐND
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