The rationale behind a proposed policy to provide payment guarantee for bonds issued by banks must be taken into prudent consideration, since such a policy may backfire. Why is payment guarantee necessary? The amount of bonds issued by banks, after having taken the lead in many consecutive years, dropped sharply in this year’s first half, accounting for only 6.8% of the total VND42,783 billion worth of corporate bonds, or less than VND3,000 billion, according to a report from the Vietnam Bond Market Association. Such a proportion compares poorly to 54.5% […]
What is the rationale?
By Tue Nhien
