Bank Indonesia (BI) has vowed to maintain the country’s financial market stability amid expectations that economic growth will slow due to the spread of the COVID-19 outbreak.
The volume of corporate bonds issued during February has reduced remarkably compared to the previous month due to the negative impacts of the COVID-19 epidemic on the stock market.
The Hanoi Stock Exchange organised 13 Government bond auctions in February, raising 13.7 trillion VND (590.2 million USD), a month-on-month rise of 44 percent.
Over 1.1 trillion VND (47.8 million USD) worth of government bonds has been raised by the State Treasury through a recent auction at the Hanoi Stock Exchange (HNX).
A total of over 9.52 trillion VND (nearly 411.2 million USD), was raised by the State Treasury through 12 G-bond auctions at the Hanoi Stock Exchange (HNX) in January.
The Ministry of Finance will tighten regulations over corporate bond issuance because of an overheating market to protect investors and prevent risks which might arise from the abuse of this capital raising channel.
The Indonesian government plans to release dual-currency bonds with a total amount of 3.1 billion USD for deficit financing this year, said the Ministry of Finance.
The Southeast Asia Joint Stock Commercial Bank (SeABank) has completed the early redemption of all special bonds at the Vietnam Asset Management Company (VAMC), thereby helping the bank proactively monitor and handle bad debts.
Rising medium- and long-term capital demands to meet stricter regulations on credit safety limits and capital adequacy early next year were putting pressure on commercial banks to issue bonds in the final months of the year, experts said.
At the end of November, the size of the Government bond (G-bond) market was equal to 25.1 percent of the gross domestic product (GDP) of 2019, rising 12-fold from 2009, data show.
The Hanoi Stock Exchange (HNX) held 25 auctions in November, mobilising over 26 trillion VND (1.12 billion USD) worth of G-bonds, up 29 percent from the previous month.
Investors should make careful decisions when purchasing corporate bonds, especially coming with high yield rates, to avoid risks, the Ministry of Finance (MoF) has said.