HoREA proposes banks be allowed to buy corporate bonds for debt restructuring

HCMC – The HCMC Real Estate Association (HoREA) has proposed changing corporate bond regulations to allow banks to buy corporate bonds for debt restructuring. The association called for adjustments to specific provisions in the central bank’s Circular 22/2019, which governs banks’ limits and prudential ratios, including at foreign bank branches. The proposed changes involve extending the compliance timeline by 12 months for banks to adhere to the maximum ratio of short-term capital utilized for medium and long-term loans. HoREA also sought to eliminate specific clauses from the circular, permitting banks to purchase corporate bonds for debt restructuring purposes in alignment with the stipulations in Government Decree 65/2022. The association underscored that this modification could enhance consistency within the legal framework and streamline debt restructuring efforts in accordance with the law.