THE SOCIALIST REPUBLIC OF VIET NAM
Government News
Banks not to liquidate repo agreements
VNGOP – The Việt Nam Banks Association (VNBA) called upon its members to seriously observe the PM’s directions as stated in Document 1909/VPCP-KTTH dated on March 25, 2008 on solutions to stabilize the stock market.
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If banks and stock companies pause liquidating their contracts, the securities demand-supply balance will be recovered |
To help the stock market overcome the current hard time, the VNBA asked its members to consider not liquidating their securities mortgage and repurchase agreements, so as to stabilize the stock market in particular and the macro economy in general.
Under the PM’s direction, the State Bank will provide rediscount loans at the interest rate of 9% to the banks which are in temporary scarcity of market liquidity. The State Bank will also purchase more foreign currency to facilitate the capital conversion and reduce the Vietnamese currency tension.
According to Document 1909/VPCP-KTTH, the PM allowed enterprises to repurchase stocks which they had sold out. They were also permitted to freely increase their charter capital.
By Phương Uyên