The Government agencies are tasked to step up supervision activities against unlawful practices in the issuance of corporate bonds, especially from real estate firms, or those offering high return rates and without sufficient guarantees.
|The Prime Minister calls for the healthy development of the corporate bond market. Photo: The Hanoi Times|
Prime Minister Pham Minh Chinh instructed in directive No.304 on ensuring the healthy development of the corporate bond market and auctions of land use rights.
The directive called for the Ministry of Finance (MoF) to revise regulations on the corporate bond market to enhance efficiency in the process of law enforcement for greater transparency and safety of the market.
“The findings should be submitted back to the prime minister before April 30,” stated the document.
Meanwhile, Chinh also requested the Governor of the State Bank of Vietnam (SBV) to monitor credit institutions investing in corporate bonds, or taking part in the process of providing financial support for the bond issuance process.
“The focus should be placed on companies with a large amount of bond issuance, high-interest rates, or having unfavorable business results and without guarantees,” the directive stated.
“The SBV is tasked with imposing strict penalties to any violations on credit provision,” it added.
In addition, the Minister of Natural Resources and Environment should pay more attention to the auction process of land use rights in provinces/cities.
In case of irregularities or risks to market stability, the authorities are expected to act on time by the law.
The directive asked the Ministry of Natural Resources and Environment to review existing regulations on auctioning land use rights to address shortcomings in the law, if any, and finalize the regulations to avoid possible cases of taking advantage of legal loopholes.
The corporate bond market is one of the key medium and long-term capital mobilization channels for enterprises, which is part of the Government’s vision for a balanced development among the capital and monetary markets.
However, there have been a growing number of cases of unlawful practices on corporate bond issuance and auctioning of land use rights.
On April 5, the Ministry of Public Security confirmed the arrest of the Chairman of Tan Hoang Minh Group for alleged dishonest practices in bond issuances from its subsidiaries.