VCN – In the first months of the year, the State Treasure has followed the market development and provided solutions to mobilize capital for the State budget through the issuance of government bonds.
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According to the State Treasury, despite the impact of the Covid-19 pandemic and disadvantages of the world market, it always closely follows the market developments, provides solutions to mobilize capital to meet expenditures of the central budget, and continues to restructure the government bond debt portfolio, saving interest payments for the state budget.
The State Treasury has actively developed the government bond market to become a key capital mobilization channel for the state budget and a reference market for other long-term capital markets.
It is estimated that by the end of April 2022, the State Treasury has mobilized about VND45,000 billion under the bidding method for terms from 5 to 30 years.
The average term of government bonds is 15.74 years, the average interest rate is 2.39%/year, and the average remaining term of the government bond portfolio is 9.29 years in line with the target set out in Resolution 23/2021/QH15 and Resolution 43/2022/QH15 of the National Assembly.
The State Treasury has implemented centralized and unified management of the state budget across the whole system; monthly, quarterly and yearly forecasted cash inflows and outflows of the state budget in Vietnamese dong and foreign currencies.
In addition, State Treasury has submitted to the Ministry of Finance a plan to operate the state budget in a safe, proactive, transparent and efficient manner, meeting the spending of the state budget and units that have transactions with the State Treasury in domestic and foreign currencies, including in the last days of the year, before the Lunar New Year, during the prevention and control of Covid-19 pandemic and social security.
When the state budget is temporarily idle, the State Treasury deposits this amount of funds at commercial banks and buys back government bonds under the interest rate competitive bidding method, ensuring competitiveness, publicity and transparency, increasing revenue for the state budget; linking treasury management, budget management with debt management; thereby contributing to improving the efficiency of management and use of financial resources of the state.