State plans $1.3 billion bond issue
06/08/2010 - 66 Lượt xem
Ministry of Finance (MoF) estimates the Government will issue VND22 trillion (US$1.3 billion) in bonds this year to support large transport and irrigation projects.
The ministry emphasises, though, the estimate is based on capital demand forecasts and heavily dependant on cash disbursement procedures to projects.
Demand for capital is rising but the disbursement process is still slow, according to the ministry, causing concern that construction expenses may accelerate. If cash is allocated too slowly, then costly delays have to be incurred until the money is made available.
Last year, the Government disbursed VND10.7 trillion to infrastructure projects, which is only two thirds of this year’s estimated bond issuance.
MoF officials suggest that ministries and provinces thoroughly plan out capital requirements and disbursement procedures in order to avoid delays. The ministry also warns that any problems in project financing will be directly reported to the Prime Minister.
From 2003-2010, the Government plans to raise a total of VND110 trillion through bonds. At the end of 2006, VND31.1 trillion in debt had been auctioned.
Volume has also increased. In 2005, the State budget raised VND10.5 trillion through bonds, up from VND5 trillion in 2003
Source: Vietnam News