State Treasury supplies VND780 trillion to boost market liquidity
The Vietnam State Treasury has provided nearly VND780 trillion (US$29.5 billion) to the financial system via bank deposits and government bond repurchase operations, supporting liquidity in the banking system.
The Vietnam State Treasury has injected nearly VND780 trillion (US$29.5 billion) into the financial system through bank deposits and government bond repurchase operations, bolstering liquidity in the banking sector, according to official announcements. The Ministry of Finance has directed the State Bank of Vietnam to oversee the management of these state funds deposited with commercial banks.
This injection of idle state funds aims to alleviate borrowing costs, as government bond issuance has been facing challenges. Since the beginning of 2026, the central government has borrowed about VND262 trillion (US$9.9 billion) from these idle funds, with further borrowing anticipated by year-end, ranging from VND220 trillion to VND280 trillion (US$8.3 billion to US$10.6 billion).
The Ministry of Finance utilizes these idle funds through term deposits with commercial banks and government bond repurchase transactions. Currently, State Treasury term deposits at commercial banks amount to approximately VND740 trillion (US$28 billion), a significant increase of over VND250 trillion (US$9.5 billion) since the start of the year.
Additionally, outstanding government bond repo transactions total about VND40 trillion (US$1.5 billion), contributing to a combined total of VND780 trillion (US$29.5 billion) made available to the market. The Ministry is considering amendments to Decree No. 24/2016/ND-CP to enhance flexibility in setting limits for State Treasury term deposits, replacing the existing fixed cap.
The revised regulations are projected to be submitted to the Government and implemented from January 1, 2027. The Ministry of Finance is committed to collaborating with the State Bank of Vietnam to efficiently manage state funds, support liquidity in the banking system, and maintain macroeconomic stability. The State Bank recently issued Decision No. 1743/2026, increasing the proportion of State Treasury term deposits that commercial banks can consider as mobilized funds from 20 percent to 50 percent in calculating their loan-to-deposit ratio.
This measure will remain in effect until July 31, 2028, as the banking system confronts escalating funding pressures.
Written by urgent.news from SGGP English Edition Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
