MOF considers allowing businesses to pay bond interest in shares, realty products
The Ministry of Finance has proposed that the Government consider allowing enterprises to pay principal and interest on bonds in shares and real estate products.
The Ministry of Finance (MoF) has just submitted to the Government a draft decree on trading private placement of corporate bonds in the domestic market and offering bonds to international markets.
The decree amends and supplements a number of articles of Decree 65 that amends and supplements Decree 153/2020/ND-CP.
Recently, some businesses, especially in the real estate group, have had difficulty paying their debt obligations due in 2023. They had to negotiate with bondholders to pay bond principal and interest with shares, or real estate products.
The Ministry of Finance proposed that the Government consider allowing the cases. If an enterprise cannot pay the bond principal and interest in cash, they can negotiate with investors to pay by other assets on the principle of complying with the provisions of civil law. This payment method must be approved by the bondholders and the enterprise must disclose information and take responsibility for the legal status of the assets used to pay the principal and interest of the bond.
To assist enterprises in mobilising capital for production and business activities and debt restructuring, the Ministry of Finance shall propose to the Government to allow previously issued bonds with an outstanding balance to be changed in expiration term, the maximum time is 2 years.