Is the 3-year public debt management program a public debt management instrument in Vietnam? What are the bases for developing 3-year public debt management programs in Vietnam?
Is the 3-year public debt management program a public debt management instrument in Vietnam?
Pursuant to Decree No. 94/2018/ND-CP on public debt management promulgated by the Government.
Clause 3, Article 3 of Decree No. 94/2018/ND-CP stipulates as follows:
Definition
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3. Public debt management instruments include indicators of public debts, 5-year public borrowing and repayment plans, 3-year public debt management programs and annual public borrowing and repayment plans.
Thus, there are currently 04 public debt management instruments and the 3-year public debt management program is one of the prescribed instruments.
Is the 3-year public debt management program a public debt management instrument in Vietnam? What are the bases for developing 3-year public debt management programs in Vietnam?
What are the bases for developing 3-year public debt management programs in Vietnam?
In Article 11 of Decree No. 94/2018/ND-CP stipulating the bases for developing 3-year public debt management programs as follows:
Bases for developing 3-year public debt management programs
1. Implementation of socio-economic plans, state budget estimates, public borrowing and repayment plans in current year
2. 5-year public borrowing and repayment plan (if the 3-year program is in the 5-year plan) or objectives and orientations for public debt management in the next 5-year period (in case the 3-year period of the program is between two 5-year plans)
3. Forecasts about target for socio-economic development, state budget and public investment in 3 planning years and domestic and international capital market relating to the forecast during the preparation of the previous 3-year public debt management program.
Thus, 3-year public debt management programs are made on the basis of 03 following bases:
- Implementation of socio-economic plans, state budget estimates, public borrowing and repayment plans in current year
- 5-year public borrowing and repayment plan (if the 3-year program is in the 5-year plan) or objectives and orientations for public debt management in the next 5-year period (in case the 3-year period of the program is between two 5-year plans)
- Forecasts about target for socio-economic development, state budget and public investment in 3 planning years and domestic and international capital market relating to the forecast during the preparation of the previous 3-year public debt management program.
What is the procedure for developing 3-year public debt management programs in Vietnam?
Pursuant to the provisions of Article 12 of Decree No. 94/2018/ND-CP, the 3-year public debt management program is made in the following procedure:
- People’s Committees of provinces shall develop 3-year provincial debt management programs and send them to the Ministry of Finance in accordance with the Government regulations on management of provincial debts which are then included in the 3-year public debt management plan.
- The Ministry of Finance shall develop a 3-year public debt program and send it to the Prime Minister together with the 3-year financial plan in accordance with provisions of the Law on State Budget.
- Relevant agencies and ministries shall be responsible for cooperating with the Ministry of Finance in providing information and sending reports for the purpose of developing the 3-year public debt management plan.
- According to the 3-year financial plan submitted to the National Assembly and annual state budget estimates ratified by the National Assembly, the Ministry of Finance shall preside over the completion of preparation of 3-year public debt management program, including limit on sovereign guarantee and limits on loans to be on-lent in the planning year and send such program to the Government which is then submitted to the Prime Minister together with annual public borrowing and repayment plans for ratification.
Thus, the 3-year public debt management program is implemented according to the contents specified in Article 13 of Decree No. 94/2018/ND-CP as follows:
- People's Committees of provinces shall instruct specialized agencies to implement 3-year provincial debt management programs, specifically as follows:
+ Develop 3-year provincial debt management programs according to the reality and evaluate the implementation of the program in current year as well as anticipate the next 2-year implementation;
+ Prioritize disbursement of ODA loans and external concessional loans to be on-lent and reduce loans by issuing bonds (market loans)
- The Ministry of Finance shall preside over and cooperate with ministries and provinces in implementing the 3-year public debt management program, specifically as follows:
+ Ensure that loan and repayment amounts do not exceed the limit specified in the 5-year public borrowing and repayment plan ratified by the National Assembly;
+ Evaluate public debt structure in consistent with indicators of public debt safety, including Government debts, provincial debts and sovereign-guaranteed debts;
+ Evaluate the implementation and make appropriate proposals for keeping indicators of public debt safety under the public debt ceiling and threshold.
Nguyễn Thị Hồng Nhung