Public debt (including Government’s debt, Government guaranteed debt and local debt) will be maintained at under 65 percent of GDP by 2015; total Government’s debt and external debt will not be over 50 percent of GDP and 50 percent of GDP respectively.
On May 4th 2013, Prime Minister has issued Decision 689/QD-TTg ratifying Debt Management Programme in medium term of 2013 - 2015. Accordingly, general target of the programme is to mobilise and manage loans with appropriate cost and risk norms, meeting the needs of budget balancing and investment for social - economic development in periods; loans disbursement and utilisation must reach their targets, have efficiency and guarantee capacity of repayment; maintaining the safety of indicators of public debt, Government’s debt and external debt of nation, ensuring financial security of the nation in level appropriating with Vietnamese and international conditions.
The programme has identified detailed targets for the period of 2013 – 2015, including internal and external loans to recover state budget deficit toward state budget deficit reduction, striving to keep loans under 4.5 percent of GDP by 2015 (including government bonds); issuing government’s bonds domestically for investment into transport, irrigation, health service, education for the period of 2011-2015; mobilising supplemented loans to construct comprehensive infrastructure serving country industrialization and modernization.
Government’s guarantee, foreign loans of enterprises and credit institutions, loans of local authorities must be under annual limits approved by competent authorities.
Strengthen risk management, restructure several public debts to reduce market risk, credit risk and liquidity risk, ensure debt indexes are under safe limit and national financial security.
Reduce risks of re-financing, liquidity, foreign exchange, money; elaborate mechanism to boost government bond market and strive to lengthen maturity of domestic government bonds in the period of 2011-2015 to about 4-6 years.
Construct, complete and develop information system to support reviewing, supervising and assessing sustainably public debts in compliance with regulations. Public debts (including government’s debts, government guarantees and debts of local authorities) cannot excess 65 percent of GDP, of which government’s debts cannot be higher than 50 percent of GDP and foreign loans of the country cannot excess 50 percent of GDP.
Government direct obligation (excluding re-financing) cannot be higher than 25 percent of total state budget revenues, and foreign obligation of the country cannot excess 25 percent of value of goods and service export. Ensure government’s foreign exchange reserve rate must be higher than 200 percent of total short term foreign loans.
The programme also provides major tasks and solutions, including: Mobilising supplemented loans for state budget balancing and socio-economic development; paying loans at due, preventing overdue loans that effect creditworthiness of the Government; enhancing risk management and public debt restructure; constructing, completing and developing information system to support reviewing, supervising and assessing sustainably public debts; continuing completing legal framework of loans management; supervising closely granting and managing government guarantees; improving loan exploit effectiveness.
The Government commissioned the Ministry of Finance to manage the programme, responsible for directing and coordinating with ministries, relevant organs and People’s Committee of state provinces and cities to effectively implement the programme.
The Ministry of Planning and Investment, State Bank of Vietnam must base on responsibilities recorded in Law on public debt management and legal guiding documents to organise implementation of targets and tasks of the programme.
NP
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