Illustrative image (Photo: VietnamPlus) Hanoi (VNA) – The State Bank of Vietnam (SBV) has requested credit institutions to enhance management to ensure their staff adhere to legal regulations and do not take part in “black credit” activities. SBV Governor Le Minh Hung recently signed a decision to issue the banking sector’s plan of action to implement the Prime Minister’s Directive 12/CT-TTg, dated April 25, 2019, to help curb “black credit”. According to this decision, the Governor assigned subordinate units of the SBV to coordinate with ministries, sectors and socio-economic organisations to help control “black credit”. He asked departments and authorities to disseminate legal documents on bank credit provision mechanisms and policies, along with soft loan packages, to people of all social strata. They were also requested to propose policies to the Government to diversify forms of loans and banking services. Agencies were … [Read more...] about Developing microfinance institutions to help curb “black credit”
Credit rating vs credit score
Việt Nam vs China in the opening match of the AFF Beach Football Championship held in Thailand on Wednesday. — Photo VFF HÀ NỘI — Defending champions Việt Nam beat China 7-5 in the opening match of the AFF Beach Football Championship held in Thailand on Wednesday. Despite China having the advantage of physical strength and an experienced coach from Spain, Việt Nam still controlled the game from the get-go. Việt Nam then quickly took the lead with five goals. In the third set, the score was 5-1 in favour of Việt Nam and it was considered very safe for Việt Nam. However, in only a few minutes, China scored three goals in a row. The Vietnamese side changed their players continuously to keep their lead. China had several chances to score more goals, but couldn't find the net. The chances came to Việt Nam and captain Bùi Trần Tuấn Anh helped his team lead 6-4. In the dying minutes, … [Read more...] about Việt Nam beat China in the AFF Beach Football Champs
Commercial banks’ purchase of real estate corporate bonds is considered indirect lending to real estate firms, experts say. Corporate bond rush The interest rates for the following years will be calculated by the average interest rate of three banks plus 4.8 percent. The bond interest rates of 10-14.5 percent per annum have caught special attention from the public because they are double bank deposit interest rates. However, the real interest rates bond holders can receive won’t be that high after they pay fees to banks. The HCMC Infrastructure Investment JSC issued VND200 billion worth of bonds with the interest rate of 11 percent for the first year. The interest rates for the next years will be calculated by the TP Bank’s one-year deposit interest rate plus 3.5 percent. Risks Kim Chi What's behind real estate firms’ race to issue corporate bonds? Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst … [Read more...] about VN banks told to be careful with corporate bonds
Editor's note: Branko Milanović is an economist who specializes in development and inequality. He is currently Visiting Presidential Professor at City University of New York Graduate Center and an affiliated senior scholar at the Luxembourg Income Study (LIS). He was formerly the lead economist in the World Bank's research department. His more recent book is Global Inequality: A New Approach for the Age of Globalization. As many of the world’s richest and most powerful individuals gather at the World Economic Forum in Davos this week, we again find ourselves talking about economic inequality. New figures from Oxfam show the world’s billionaires increased their fortunes by a handsome $762 billion in just 12 months, enough to end extreme poverty seven times over. Oxfam uses Credit Suisse data to show that 82 percent of new wealth created last year went to the top 1 percent. This is a long-term problem – the World Inequality … [Read more...] about Income inequality rising globally: economist
Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. A report of the State Securities Commission (SSC) showed that VND60 trillion worth of corporate bonds were issued in the first half of the year. Meanwhile, according to Military Bank Securities, the figure is VND70 trillion. Real estate firms are rushing to issue corporate bonds, which analysts say shows their thirst for capital. But there are risks. The high bond interest rate is what analysts find worrying. Kim Chi Real estate firms switch to bonds due to less bank loans Bond issuance is becoming an ideal channel for real estate firms to raise capital as credit policies for property development are gradually being tightened, experts said. Strong desire for M&A deals in real estate Foreign investment flows into Vietnam’s property sector through merger and acquisition transactions have been reported to be on a strong … [Read more...] about What’s behind real estate firms’ race to issue corporate bonds?