What are the bases for preparing annual public debt borrowing and repayment plans in Vietnam?

What are the bases for preparing annual public debt borrowing and repayment plans in Vietnam?

Pursuant to Article 15 of the Decree 94/2018/NĐ-CP stipulating bases for preparing annual public debt borrowing and repayment plans in Vietnam as follows:

1. The 5-year public borrowing and repayment plan and 3-year public debt management program

2. Loan raising tasks for financing state budget deficit, new loans for repaying principals according to state budget estimates ratified by the National Assembly

3. Domestic and foreign capital market, forecasts for interests, exchange rate and demand for restructuring Government debts in the planning year

4. Limit on outstanding loan and local government budget deficit as prescribed in the Law on State Budget

5. Implementation of public borrowing and repayment plan in the current year and demand for use of loans for financing programs and projects run by ministries, provinces, end-borrowers and sovereign-guaranteed borrowers

What are procedures for preparing and ratifying annual public debt borrowing and repayment plans in Vietnam?

Pursuant to Article 16 of the Decree 94/2018/NĐ-CP stipulating procedures for preparing and ratifying annual public debt borrowing and repayment plans in Vietnam as follows:

1. The governing bodies which are ministries, ministerial agencies and agencies affiliated to the Government shall instruct owners of affiliated projects to prepare annual plans for disbursement and use of loans provided for each program and project by the time of making annual state budget estimates which are then consolidated and submitted to the Ministry of Finance.

2. People’s Committees of provinces shall prepare borrowing and repayment plans of provinces in accordance with regulations in the Government Decree on management of provincial debts.

3. End-borrowers and guaranteed borrowers shall prepare borrowing and repayment plans for loans to be on-lent and sovereign-guaranteed loans and send them to the Ministry of Finance for the purpose of determining limits on ODA loans and concessional loans to be on-lent and limit on sovereign guarantee in accordance with regulations in the Government Decree on management of ODA loans to be on-lent, external concessional loans of the Government and Decree on provision and management of sovereign guarantee which are then submitted to the Government for ratification.

4. The Ministry of Finance shall prepare total borrowing and repayment amounts of central government budget and include total borrowing and repayment amounts of local government budget in state budget estimates then send them to the Government which are later submitted to the National Assembly for ratification.

5. According to annual total borrowing and repayment amounts of state budget ratified by the National Assembly, limits on ODA loans and external concessional loans to be on-lent and limit on sovereign guarantee ratified by the Government, the Ministry of Finance shall prepare an annual public borrowing and repayment plan and submit it to the Prime Minister for ratification.

6. According to the annual borrowing and repayment plan ratified by the Prime Ministers, ministries and provinces shall implement such plan within its scope and approved limits.

What are regulations on developing and controlling indicators of external debts in Vietnam?

Pursuant to Article 17 of the Decree 94/2018/NĐ-CP stipulating regulations on developing and controlling indicators of external debts in Vietnam as follows:

1. The State Bank shall make a consolidated report on demand for midterm, short-term and long-term external loans and repayment thereof without sovereign guarantee and suggest the maximum growth rate of outstanding debts of short-term loans and limits on midterm, short-term and long-term external loans without sovereign guarantee and send them to the Ministry of Finance which are then included in the annual public borrowing and repayment plan and submitted to the Prime Minister for approval.

2. According to decision of the Prime Minister, the Ministry of Finance and State Bank shall supervise and control indicators of external debts, specifically as follows:

a) The Ministry of Finance shall manage and supervise Government’s external debts and external loans guaranteed by the Government under the approved limits;

b) The State Bank shall manage and supervise debts arising from external loans without sovereign guarantee in accordance with provisions of the Law on Management of external borrowing and repayment thereof by enterprises without sovereign guarantee and ensure the borrowing amounts do not exceed the approved limits.

3. In case limits on loans in the planning year are not yet approved, the Ministry of Finance and the State Bank shall determine loan amounts within annual loan limits in such a way that accumulated net borrowing amount do not exceed 50% of the loan limit in the previous year.

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