Decree 08 on bonds only allows 2 years to delay, but if bondholders trust the business, they are ready for the business to delay 5-7 years, even 10 years.
Recently, the Government has issued Decree 08/2023/ND-CP amending, supplementing and stopping the effect of a number of articles in the decrees regulating the private offering and trading of corporate bonds. abbreviated as Decree 08), which has many notable points such as extending bond payments for no more than 2 years, strengthening credit ratings for businesses or opening up capital for the market.
Businesses still have to save themselves
Discussing the impact of Decree 08, in a recent real estate forum, economist Assoc. Prof.Dr. Dinh Trong Thinh said that by the end of 2022, the growth rate of real estate credit will be nearly twice as high. double the credit growth rate of the whole economy. For many years, the proportion of real estate loans has always been the highest in the economy, accounting for 19-21%.
Meanwhile, corporate assets fell seriously. Therefore, now, it is extremely difficult for businesses to want to issue additional shares, but even if they are issued, it is still a problem to sell or not.
"The first quarter of the year is almost over, but businesses are almost unable to issue it. The problem now is who saves the market? How to save it? The main thing is still to save ourselves", Mr. Thinh emphasized. .
Recently, the real estate market has faced many difficulties in capital flow (Artwork: Ha Phong).
The Government has taken many concrete actions, introduced policies to solve the problem of bonds to maturity in the period of 2023-2024. For example, helping businesses negotiate with bondholders to delay maturity, swap debt bonds for other assets, etc.
In fact, many businesses have also been doing so, but with Resolution 08, a legal corridor has been established to protect the interests of both parties.
In addition, according to Mr. Thinh, another thing that helps the bond market to "warm up" is the regulation to determine the professional investor status. Previously, Decree 65 had very strict regulations on this.
However, with Decree 08, investors are not required to meet all regulations, creating conditions to help increase the number of buyers. However, how "warm" still depends on the movements of the market and investors' confidence.
Regarding the solution, economic expert Dinh Trong Thinh said that businesses themselves must make efforts to gain that trust by taking specific actions such as paying interest on loans on time to bondholders, actively negotiating with them. .. Decree 08 only delays 2 years, but if bondholders trust the business, they are ready to delay the business 5-7 years, even 10 years. The law does not forbid this.
Also discussing this issue, economic expert Dr. Vu Dinh Anh acknowledged that Resolution 08 will only help businesses in handling hundreds of trillions of dong of bonds that are due and about to mature in 2023 and 2024, but will not assist businesses in issuing bonds. new individual corporate bonds.
Therefore, according to experts, the restructuring of finance and corporate bonds is an opportunity for businesses to have 2 years to deal with problems, strengthen and build confidence for investors and the corporate market. private bond issuers. However, the Decree does not contain any content to help make the private placement of corporate bonds by real estate businesses an important, stable and sustainable channel, besides the current financial channels.
Investor confidence is required
Sharing the same view, Mr. Dinh Minh Tuan - Director of Batdongsan.com.vn in the South region - said that the extension of the 2-year bond term brings the expectation that it will prolong the time and conditions for businesses. Real estate can remove projects that are in legal trouble, transfer projects (M&A) or accumulate cash flow from sales to pay bonds due.
"When the confidence of investors returns with the projects being removed, the issuance of new deposits and the issuance of corporate bonds will make payment or liquidity easier," Mr. Tuan emphasized.
In addition, according to Mr. Tuan, Decree 08 not only helps reduce pressure on businesses but also protects investors. For bondholders who do not want to extend the 2-year extension, the Decree directly protects their interests because it still gives them the right to choose, but the enterprise cannot arbitrarily renew it.
For investors who do not have immediate needs, the business has time to restructure, not to sell assets cheaply, thereby preserving the value of assets in the short term to ensure the interests of investors.
In addition, investors with a securities amount of less than 2 billion VND but have idle savings at the bank can consider participating, supporting liquidity for the market. When liquidity increases, it will also better support new issuance, as well as classify businesses.
According to experts, in addition to corporate restructuring, the removal of difficulties in bonds depends on investors' confidence (Artwork: Ha Phong).
Looking at the market overview, Mr. Nguyen Van Dinh - Chairman of the Vietnam Real Estate Brokers Association said that the Government needs to accelerate the process of amending the laws, in addition to the Land Law, there is also the Law on Real Estate Business. , Housing Law, promoting the correction on schedule and meeting the requirements of practice.
For businesses, there should be restructuring plans to suit the economy and resources of the business. At the same time, restructure the product line to be easily absorbed by the market, in order to have cash flow for the business to restart.
In addition, businesses should include social housing in their business strategies, including large enterprises specializing in high-end housing development.
"I think this is a product that creates longer-term sustainability and stability for businesses. For businesses that issue corporate bonds, it is necessary to develop debt repayment and issuance plans, especially for corporate bonds. restore confidence from investors", Mr. Dinh emphasized.
According to Tran Khang/Dantri.com.vn
