Supervision of the tender for government bonds. (Source: VNA)
 
Hanoi (VNA) – Vietnam’s financial sector will issue long-term Government bonds in order to raise 340 trillion VND (over 15 billion USD) for the State budget in 2017.

Of that targeted sum, 184 trillion VND (8.15 billion USD) will be used to offset budget overspending and the remaining 156 trillion VND (6.91 billion USD) will be spent on paying off original loans.

The Vietnam State Treasury said it has issued a variety of Government bonds, with terms ranging from 3-30 years, mostly from 5 years upwards to ease the debt payment pressure on the State budget in the near future.

According to the Ministry of Finance, up to 91.1 percent of Government bonds issued in 2016 has terms of at least five years, surpassing the target of 70 percent set by the National Assembly.

The average interest rate for Government bonds last year was 6.49 percent per annum, down 54.5 percentage points from 2011.

In 2016, the State Treasury raised 281.75 trillion VND (12.48 billion USD) from Government bonds, 55 trillion VND (2.43 billion USD) from social insurance.

It disbursed 1.9 billion USD from official development assistance (ODA) capital and preferential loans, meeting the estimated budget spending.-VNA