Banks warned of risks as they hold large amount of realty bonds vietnamnet.vn - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from vietnamnet.vn Daily Mail and Mail on Sunday newspapers.
Experts warn of high risks from real estate firms corporate bond issuance vietnamnet.vn - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from vietnamnet.vn Daily Mail and Mail on Sunday newspapers.
Experts have expressed concern about property bubbles and the risks to the macroeconomy as real estate firms are issuing corporate bonds at high interest rates.
Businesses borrow VND400 trillion at high interest rates, raising concerns about solvency Chia sẻ | FaceBookTwitter Email Copy Link Copy link bài viết thành công
13/03/2021 10:47 GMT+7
The financial health of many enterprises that issued bonds in 2020 is getting worse, with profits not high enough to pay bond interest.
According to Fiin Ratings, the total value of bonds issued by Vietnam’s enterprises in 2020 reached a record high at VND429.5 trillion, an increase of 28.3 percent over 2019. The figure was equal to 4.7 percent of the outstanding loans of the entire banking system for the year.
The Vietnamese corporate bond market is relatively large, equal to 15.1 percent of GDP and 10.3 percent of the outstanding loans of the banking system at the end of 2020.