Vietnam’s Borrowing and Repayment Plans in 2014

The Vietnamese Prime Minister (PM) Nguyen Tan Dung has signed a decision approving the Government’s plans for 2014 borrowing and repayment.

 

Accordingly, the Government plans to incur VND367 trillion domestic loans, including VND197 trillion loans to offset the State budget deficit, VND100 trillion worth of Government Bonds will be funded for investments and VND70 trillion for rollovers-new loans are taken to pay maturity loans.

 

The foreign loans are projected at US$4.52 billion or VND95.8 trillion. The issuance of Vietnamese Government Bonds to international capital markets is in accordance with the Resolution of the Government.

 

Along with borrowing plans, the PM also plans to repay VND208,883 billion for debts, including the payment for domestic loans worth VND159,683 billion (VND92,323 billion are from the State budget and the remaining is rollover); and payment for foreign loans worth VND49,200 billion (VND26,427 billion from State budget and VND22,773 billion of rollovers).

The PM also approved borrowing limits guaranteed by the Government; medium- term, long- term commercial loans self-taken by domestic businesses with foreign credit institutions this year.

 

Particularly, limits for domestic loans guaranteed by the Government are VND70,492 billion, including VND40,000 billion guaranteed bonds issued for Bank for Investment and Development of Vietnam (BIDV), VND15,492 billion guaranteed bonds issued for Vietnam Bank for Social Policies (VBSP) and VND15,000 billion for national key projects. Limits for guaranteed foreign commercial loans for businesses, credit institutions are US$2.8 million and limits for self-taken foreign commercial loans are US$3.8 million.

 

PM assigned the Ministry of Finance to co-ordinate with ministries, agencies and localities to implement the Government’s 2014 borrowing and repayment plans, and limit government guarantee in 2014; research and submit to the PM mechanisms to expand rollover from foreign loans of the Government for local authorities to improve the autonomy and local accountability, while ensuring fairness between the localities.

Besides, the PM assigned the Ministry of Finance to research, develop a project to strengthen the management and risk handling of Vietnam's public debt; review the project and evaluate 5 years of implementing the Law on Public Debt Management.