What Are the Solutions for Temporary Insolvency in Bond Payments?

11:55, 11/07/2024

Circular 46/2017/TT-BTC has been issued by the Ministry of Finance to guide bond transaction payment activities of the Government of Vietnam.

To be specific, Circular 46 has introduced measures to address the temporary shortfall in bond payment capacity of the Government of Vietnam as follows:

- Institutions experiencing a temporary shortfall in payment capacity may use borrowed funds from member banks to fulfill indirect payment obligations.- Member banks, depository members that are commercial banks, and direct account-holding organizations that are commercial banks and experiencing a temporary shortfall in payment capacity will receive support from the State Bank of Vietnam through overdraft and overnight lending operations.- If by the payment deadline there are still insufficient funds to fulfill payment, the Vietnam Securities Depository Center will extend the payment deadline for that transaction as requested by the buyer and approved by the seller.- Buyers lacking funds whose transactions have extended payment deadlines are fully responsible for any losses incurred to customers and related members.

See more on the principles of extending the payment deadline in Circular 46/2017/TT-BTC, effective from August 1, 2017.

- Thanh Lam -

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