|Minister of Finance Ho Duc Phuc spoke at the Conference.|
Focus on 6 groups of solutions
Accordingly, 6 key groups of solutions are mentioned by the Finance sector head.
Firstly, for macroeconomic stability, the Ministry of Finance will continue to closely coordinate with the State Bank, the Ministry of Planning and Investment and relevant ministries and branches to implement fiscal, monetary policies, and other macro policies to maintain macroeconomic stability, ensure major balances of the economy, stabilize investment environment, ensure consistency, and stabilize policies for investors’ peace of mind to participate in investment activities in the market.
The second group of solutions is about completing the legal and institutional framework, the Ministry of Finance will synchronously deploy solutions to improve policies towards strengthening the management and supervision of the corporate bond market, improving the quality of the goods, and improving the quality of service providers.
The Minister said that the Ministry of Finance is submitting to the Government for consideration and issuance of a Decree amending and supplementing a number of provisions in Decree No. 65 on the issuance of private corporate bonds to contribute to solving current difficulties of the bond market.
Third, the Ministry of Finance reviews and perfects mechanisms and policies to develop professional investors and long-term investors (investment funds) to create sustainable investment demand for the market.
With the fourth group of solutions, the Ministry of Finance continues to monitor and require businesses to arrange all resources to pay due principal and interest of bonds in accordance with the law, and protect the interests of investors. It is required that if enterprises have difficulties in payment, they must work and negotiate with investors to agree on a plan to restructure bonds.
At the same time, the Ministry of Finance directs the Stock Exchanges to urgently build and put the individual corporate bond trading system into operation in order to develop a transparent and safe secondary market, and enhance the ability of management, monitoring and risk reduction.
Fifth, for inspection and supervision activities, the Ministry of Finance continues to direct the State Securities Commission and functional units to organize focused inspection and examination sessions for issuers, and service providers to improve the quality of the issuer’s issuance, the quality of service provision in the corporate bond market, and to strengthen investors’ trust. After the inspection, there will be a public announcement to the market about the violations.
Additionally, the Ministry of Finance will continue to reinforce communication to stabilize psychology, rebuild investors’ trust, and help businesses and investors feel secure to participate in mobilizing and investing in the capital market while increasing the participation of institutions and professional investors, prioritizing the development of long-term investors such as investment funds, voluntary pension funds, and insurance enterprises.
Sixth, the Minister said that in addition to solutions to stabilize and develop the corporate bond market, it is necessary to continue to implement mechanisms and policies to firmly consolidate the stable macro foundation, and support the market in general including the real estate market.
Monitor compliance with financial safety standards
According to Minister Ho Duc Phuc, in recent times, many real estate businesses have limited resources but are still licensed to deploy many projects with a scale that exceeds their financial capacity, while being independent on loans, bond issuance or mobilization of homebuyers.
This situation leads to business risk, cash flow risk, potential liquidity risk in financial market, bank credit, and corporate bond market.
Accordingly, in order for the real estate market to develop well and stably, the Ministry of Finance recommends reviewing and amending policy problems in the Land Law, Housing Law, and Real Estate Business Law to enhance the efficiency of market management, creating conditions for the development of a stable and transparent real estate market.
In the near future, according to the Minister of Finance, it is necessary to review the legal difficulties and obstacles so that real estate businesses can immediately deploy unfinished projects due to legal troubles, thereby putting projects into operation soon, selling products, and solving financial problems and capital difficulties.
Along with that, the Minister of Finance also proposed to study and develop regulations on financial safety norms in the field of construction and real estate, including targets on capital mobilization limits when licensing real estate business, licensing investment projects to ensure that enterprises must have sufficient financial capacity to implement projects.
Simultaneously, the Ministry of Construction and localities are recommended to monitor compliance with the above-mentioned financial safety criteria.
According to the Minister, along with a harmonized credit policy, the above solutions will contribute to helping the real estate sector overcome this difficult period.