An employee counts money at a bank office. (Photo: VNA)The decree amends and supplements a number of articlesof Decree 65 that amends and supplements Decree 153.
The ministry proposed to continue applying regulationson identifying professional securities investors in Resolution 65 from January1, 2024.
Decree 65 stipulates that professional securities investors mustensure an average holding portfolio of 2 billion VND (85,016 USD) for at least180 days, excluding borrowed money.
According to MoF, amid the current difficult environment inliquidity, the extension of the regulations on professional securitiesinvestors will help the market have more time to adjust and can maintain thebond investment demand of investors who have financial potential but have notmet a requirement on the provisions of professional securities investors ofDecree 65.
The Ministry also proposed the Government allow a one-yearextension of the mandatory credit rating requirement in Decree 65. Decree 65requires from January 1, 2023, bond offering dossiers of issuers must havecredit rating results, applicable to enterprises whose total value of bondsmobilised in 12 months is more than 500 billion VND and more than 50% equity,or total outstanding debt is greater than 100% of the equity.
Due to the difficulty in capital mobilisation, if enterprises haveto perform credit rating, it will take considerable time and increase theissuance cost. Therefore, the Ministry submitted to the Government forpermission to postpone the implementation of regulations on mandatory creditrating requirements for one year, from January 1, 2024, instead of from January1, 2023, as prescribed in Decree 65.
For bonds offered to the public, the issuer must still get acredit rating from the beginning of next year.
In addition, the Ministry of Finance also proposed allowing issuedbonds to extend the bond's maturity.
On December 13, Prime Minister Pham Minh Chinh requested MoF tosubmit measures ensuring the healthy, transparent, safe, and effectiveoperations of the corporate bond market before December 20.
According to the dispatch signed by the PM, in accordance withResolution No.156/NQ-CP dated December 6, 2022 at the November Governmentmeeting, the Finance Minister must promptly take timely and effective solutionsto stabilise and promote the development of the corporate bond market, thusensuring legitimate rights and interests of investors in line with regulations.
The ministry is tasked with promptly reviewing the solvency andpayment capacity of corporate bond issuers, especially bonds due for payment in2022 and 2023; proactively taking specific and effective measures to handleissues within its authority to ensure the absolute safety and security of financialand monetary markets./.
VNA
