Business
Vietnam's government to borrow US$16.8 billion in 2018
The Prime Minister Nguyen Xuan Phuc has approved Decision No. 437 on the government`s borrowing of VND384 trillion (US$16.8 billion) and paying VND256.7 trillion (US$11.2 billion) in debt.
Following the borrowing scheme, the government intends to borrow VND276 trillion (US$12 billion) domestically, and VND108 trillion (US$4.8 billion) internationally.
Specifically, VND341.7 trillion (US$14.9 billion) will be used to balance the state budget, including loan to offset the state budget deficit of VND195 trillion (US$8.5 billion), and VND146.7 trillion (US$6.4 billion) for repayment of principal. The remaining VND42.2 trillion (US$1.84 billion) is will be used for relend.
Besides, the government also approved plan for debt payment in 2018 of VND256.7 trillion (US$11.2 billion), including VND256.7 trillion (US$11.2 billion) is for government direct debt payment, and VND18.5 billion (US$809 million) for paying debts of relending projects.
Following the decision, the PM also set the threshold for lending under government guarantee and commercial loan for enterprises, credit institutions in mid and long term.
Consequently, the limit of the Government bond guarantee for the Vietnam Development Bank is set at the maximum of VND24.4 trillion (US$1.06 billion), while that figure at the Vietnam Bank for Social Policies is at VND9.67 trillion (US$423 million).
The Ministry of Finance is tasked with implementing the borrowing and debt payment scheme in conformity with the decision, the Ministry of Planning & Investment to review the disbursement progress at projects funded by ODA and foreign preferential loans.
The State Bank of Vietnam is responsible to report on the lending conditions of enterprises and credit institutions in recent years, proposing solutions to supervise the debt payment process, especially short-term loans to ensure the total government's debt is within the limit.
Last year, the Deputy Prime Minister Vuong Dinh Hue set the target for public debt of no more than 65% of GDP, government debt of no more than 54% and foreign debt of no more than 50% by 2020.
Vietnam's ratio of public debt to GDP stood at 61.3% at the end of 2017, lower than an earlier estimate of 62.6%, according to the Ministry of Finance.
Vietnam's government to borrow US$16.8 billion in 2018.
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Besides, the government also approved plan for debt payment in 2018 of VND256.7 trillion (US$11.2 billion), including VND256.7 trillion (US$11.2 billion) is for government direct debt payment, and VND18.5 billion (US$809 million) for paying debts of relending projects.
Following the decision, the PM also set the threshold for lending under government guarantee and commercial loan for enterprises, credit institutions in mid and long term.
Consequently, the limit of the Government bond guarantee for the Vietnam Development Bank is set at the maximum of VND24.4 trillion (US$1.06 billion), while that figure at the Vietnam Bank for Social Policies is at VND9.67 trillion (US$423 million).
The Ministry of Finance is tasked with implementing the borrowing and debt payment scheme in conformity with the decision, the Ministry of Planning & Investment to review the disbursement progress at projects funded by ODA and foreign preferential loans.
The State Bank of Vietnam is responsible to report on the lending conditions of enterprises and credit institutions in recent years, proposing solutions to supervise the debt payment process, especially short-term loans to ensure the total government's debt is within the limit.
Last year, the Deputy Prime Minister Vuong Dinh Hue set the target for public debt of no more than 65% of GDP, government debt of no more than 54% and foreign debt of no more than 50% by 2020.
Vietnam's ratio of public debt to GDP stood at 61.3% at the end of 2017, lower than an earlier estimate of 62.6%, according to the Ministry of Finance.
