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.
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
Government bonds increased in value twice last year,
totalling nearly 67.6 trillion VND (3.2 billion USD). Bond yields
declined over 2011 and were 1-2 percent lower than deposit rates. The
deployment of the first bond trading system in August created an
effective link between issuing organisations, managing agencies and
This year, the Government expects to mobilise a
total of 150 trillion VND (7.1 billion USD) through bonds, including 90
trillion VND (4.2 billion USD) to address the budget deficit. The
remainder will go towards investment projects./.