VietNamNet Bridge - The proportion of government bonds sold in the primary market has dropped to a low of 20 percent for the year. A report by the Hanoi Stock Exchange (HNX) showed that while the State Treasury planned to call for VND3 trillion worth of capital through bond issuance (VND2 trillion from 5-year bonds and VND1 trillion from 15-year bonds), it could mobilize VND613 billion worth of capital from 15-year bonds at the auction in mid-September. The bond interest rate was 7.65 percent per annum, equal to that of the previous auction held on September 3. This means that 20.4 percent of the offered bonds were sold. Prior to that, the Vietnam Bond Market Association (VBMA) reported that the State could sell VND4.206 trillion worth of bond value out of VND14 trillion it planned to receive in August. As such, in July and August, only VND18.953 trillion worth of bonds were issued, far below the VND60 trillion the State Treasury plans to call from the public in the third … [Read more...] about Gov’t bonds not selling, sparks concern about gov’t spending
T bonds interest rate
VietNamNet Bridge – In order to keep the interest rate gap between the USD and the VND attractive, the interest rates for the VND have not been reduced. Surprisingly, while the Consumer Price Index (CPI) has increased very slowly or has decreased, the deposit interest rates have remained unchanged. The General Statistics Office (GSO) announced that the CPI in September decreased by 0.21 percent compared with the month before. The figure did not surprise analysts, who had heard that both Hanoi and HCM City had reported minus inflation rates in their localities. However, the deposit interest rates remained high. As a result, the real positive interest rate has increased to 5-6 percent. This means the real profit that depositors can pocket after deducting the CPI increase is 5-6 percent per annum. In previous years, the figure was just 2-4 percent. Analysts believe that the interest rates won’t be decreasing towards the end of the year. They think that it would be … [Read more...] about Should the interest rate be cut or the exchange rate stabilized?
Vietnam issues VND6.8 tril. in T-bonds By Thuy Dung - The Saigon Times Daily HANOI – The Hanoi Stock Exchange (HNX) organized a tender for Treasury bonds last week, with the total value on offer reaching VND7 trillion. The bonds come with three different terms: two year (VND2.5 trillion), three year (VND2.5 trillion) and five year (VND2 trillion). The two year bond had nine participants, with the lowest interest rate of 11.9% and the highest of 13%. There was VND2.3 trillion worth of bonds sold with a 12.4% interest rate. This was the second time this year that the State Treasury had issued a two year bond. Regarding the three year bond, there were 14 participants with the lowest interest rate of 11.8% and the highest of 13.2%. VND2.5 trillion was successfully mobilized with a 12.3% interest rate. The five year bond attracted 10 participants with the lowest interest rate of 11.8% and the highest of 13.5%. VND2 trillion was raised for this kind of bond with a 12.1% interest rate. … [Read more...] about Vietnam issues VND6.8 tril. in T-bonds
Better liquidity needed for interest rate cuts: expert By Thanh Thuong - The Saigon Times Daily HCMC – Only when liquidity problems at commercial banks are tackled, sky-high interest rates could be cut to make life easier for borrowers, said Le Xuan Nghia, vice chairman of the National Financial Supervisory Commission. In the year to date, inflation in the nation has been low, with a rise of just 2.37% from late last year compared to an increase of 3.35% in the same period last year. Nghia said yearly inflation was normally double the first-quarter number. Therefore, Nghia forecast, the inflation rate in 2012 will be much lower than expected, at roughly 6.5%. “The banking system should have pulled down interest rates in line with the fall of inflation but they have yet to do so due to the liquidity crunch,” Nghia noted. In fact, larger lenders are holding ample capital as they have invested heavily in Government bonds with terms of less than five years to net a … [Read more...] about Better liquidity needed for interest rate cuts: expert
While savers are delighted with rising bank deposit interest rates, borrowers are being squeezed by an associated steep increase in loan interest rates. A saver makes a deposit at a VP Bank branch in Hanoi … [Read more...] about Borrowers suffer as banks race to boost deposit interest rates