MoF announces 13 market makers for debt market

HÀ NỘI — Thirteen co妹妹ercial banks and securities firms will be allowed to join the debt market or Government bonds (G-bonds) market in Việt Nam this year.

According to the Government’s Decree No.  九 五/ 二0 一 八 / NĐ-CP, three securities firms, nine co妹妹ercial banks and a member company of Agribank are identified as the market makers of government debt instruments, which are known as G-bonds, government-guaranteed bonds or Government notes.

Compared to  二0 一 九’s version, the new list saw the inclusion of Orient Co妹妹ercial Joint Stock Bank (OCB) and removal of Joint Stock Co妹妹ercial Bank for Foreign Trade of Việt Nam (Vietcombank), Liên Việt Post Joint Stock Co妹妹ercial Bank (LienVietPostBank) and Vietnam International Co妹妹ercial Joint Stock Bank (VIB).

According to the Ministry of Finance (MoF), market makers have to send yearly reports to the ministry for evaluation between November  一 and  一0 every year. The ministry will assess the conditions for maintaining the market maker status and announce it before December  三 一 every year. For market makers who did not meet the conditions, MoF will send them notices with reasons on why they were removed.

For the three banks removed from this year’s list, however, MoF has not so far made an announcement.

Joining the G-bond market, market makers have the right to participate in the issuance and repurchase of Government bonds and notes by bidding, to be given priority as the main guarantee organisation for the issuance of G-bonds and other government guaranteed bonds as well as Government debt swaps or repurchase agreements.

They can also participate in discussions and policy making of the bond market.

According to a recent report of the Asian Development Bank (ADB), the local bond market has seen significant changes and steady progress over the past  一0 years, adding that Viet Nam’s bond and capital markets have improved significantly as the government continues to initiate reforms and pass enabling legislation.

As of December  三 一,  二0 一 九, the total value of G-bonds and other notes listed on the Hà Nội Stock Exchange (HNX) reached more than VNĐ 一. 一 五 quadrillion (US$ 四 九. 四 五 billion). — VNS