Enterprises issuing bonds are unable to repay debts, the State must intervene

PHẠM ĐÔNG |

The National Assembly Chairman informed that recently, businesses have issued individual bonds everywhere and then have not been able to repay the debt, so the State must intervene.

On June 9, the National Assembly Standing Committee gave its opinion on the reception, explanation, and revision of the draft Law amending and supplementing a number of articles of the Law on Enterprises.

Some delegates suggested considering not regulating specific conditions for enterprises when issuing individual bonds. The Government has clarified the need to stipulate this content in the draft law.

The reason is that the addition of this regulation aims to increase financial capacity for issuing enterprises, limiting bond payment risks for both issuing enterprises and investors.

Regarding this issue, Chairman of the Economic and Financial Committee Phan Van Mai emphasized that bond issuance conditions need to improve quality, transparency and risk control, but must support businesses in accessing capital.

The recent individual bond payment issues are mainly related to real estate enterprises, which have been excluded in the draft law.

Chairman Phan Van Mai also emphasized that the regulation in the law on the specific debt repayment rate of 5 times equity in the law is difficult to ensure flexibility in management to meet practical needs.

Meanwhile, similar content in specialized laws is being regulated in detail in sub-law documents.

From there, the inspection agency proposed 2 options. Option 1 is to assign the Government to specify the debt level and issuance value on equity, in accordance with socio-economic needs and industry characteristics.

Option 2 stipulates that the debt payable ratio does not exceed 5 times equity in the draft law as proposed by the Government, and continues to review and revise to specifically apply to each subject.

Chu nhiem Uy ban Kinh te va Tai chinh Phan Van Mai. Anh: Pham Dong
Chairman of the Economic and Financial Committee Phan Van Mai. Photo: Pham Dong

Speaking, Politburo member and National Assembly Chairman Tran Thanh Man expressed his agreement with the Government's report, stating that individual bonds are risky financial products.

Bond buyers self-assess the level of risk and are responsible for the risks when buying bonds.

The National Assembly Chairman also said that in fact, there have been recent violations of the law on individual corporate bonds.

The National Assembly Chairman mentioned that recently, businesses have issued bonds everywhere. The lax management of state agencies as well as legal loopholes, leading to businesses not being able to repay principal and interest in full and on time, caused bond investors to file lawsuits and then the State had to take intervention measures.

Therefore, the National Assembly Chairman believes that determining the condition of the debt coefficient payable on business owners' capital when issuing individual bonds is an early preventive measure, in order to overcome the above situation.

Although the Government affirmed that the above rate regulation does not affect capital mobilization for production and business activities, the National Assembly Chairman proposed to clarify whether the regulation of this rate in the law affects the direction, management and operation of the Government or not?

Regarding the option of stipulating the rate in the law or assigning the Government to specify in detail, it will be more optimal, the National Assembly Chairman suggested that the Government should be responsible for specifying and providing specific instructions.

PHẠM ĐÔNG
TIN LIÊN QUAN

Civil servants and public employees are not allowed to establish, contribute capital and manage enterprises

|

The draft Law on Enterprises stipulates that subjects that are not allowed to establish, contribute capital and manage enterprises include civil servants and public employees.

The Vietnam Fatherland Front is managed and invested capital in enterprises

|

The draft law stipulates that the Vietnam Fatherland Front and socio-political organizations are allowed to manage and invest capital in enterprises.

Expected 45 types of projects are granted green credit, issuing green bonds

|

It is expected that there are 45 types of investment projects in 7 areas confirmed to meet the environmental criteria for green credit and green bond issuance.

New developments on the Metro line worth over 2 billion USD through 6 districts of Ho Chi Minh City

|

HCMC - Metro Line No. 2 (Ben Thanh - Tham Luong) passing through 6 districts 1, 3, 10, 12, Tan Binh and Tan Phu will pilot bid designation, first of all consulting packages.

Hanoi Chairman talks about reducing motorbikes in 4 inner-city districts

|

Hanoi - Chairman of the City People's Committee Tran Sy Thanh said that the city will continue to implement a plan to reduce motorbikes in 4 inner-city districts according to the roadmap.

Multiple accidents on Ho Chi Minh Road leave 6 people dead or injured

|

Thanh Hoa - A series of accidents involving 3 vehicles on the Ho Chi Minh trail left 1 person dead and 5 others injured.

Candidates confidently get high scores in the 10th grade multiple-choice test in Hanoi

|

Hanoi - Many candidates taking the 10th grade high school exam said that this year's exam is suitable, some students are confident of achieving high scores.

Vietnam Trade Union launches emulation for innovation and digital transformation

|

The President of the Vietnam General Confederation of Labor has just launched an emulation movement for innovation and digital transformation in all levels of trade unions.

Civil servants and public employees are not allowed to establish, contribute capital and manage enterprises

PHẠM ĐÔNG |

The draft Law on Enterprises stipulates that subjects that are not allowed to establish, contribute capital and manage enterprises include civil servants and public employees.

The Vietnam Fatherland Front is managed and invested capital in enterprises

PHẠM ĐÔNG |

The draft law stipulates that the Vietnam Fatherland Front and socio-political organizations are allowed to manage and invest capital in enterprises.

Expected 45 types of projects are granted green credit, issuing green bonds

PHẠM ĐÔNG |

It is expected that there are 45 types of investment projects in 7 areas confirmed to meet the environmental criteria for green credit and green bond issuance.