Principles of Development Investment Loans of the Capital Hanoi

1. Hanoi City is allowed to borrow domestic investment capital through the issuance of local government bonds and other forms of mobilization as stipulated by law; the City is responsible for repaying the principal, interest, and related costs using the City's budget.

2. Hanoi City is allowed to re-borrow foreign loans for the development of infrastructure to be covered by the city's budget: the city People's Committee will prepare a plan, seek opinions from the Ministry of Finance, the Ministry of Planning and Investment, and the State Bank of Vietnam, report to the Ministry of Finance and the Ministry of Planning and Investment to submit to the Prime Minister for consideration and decision under the mechanism of the Government borrowing for the City to re-borrow to implement the programs and projects as proposed by the city People's Committee. The City is responsible for arranging the city's budget to repay the principal and interest according to the law.

3. When there is a need to borrow investment capital, the city People's Committee will prepare a plan to cover the local budget deficit by borrowing, to be submitted to the city's People's Council for decision in accordance with the law.

4. Investment loans for programs and projects must ensure: the program or project using the investment loan must ensure socio-economic efficiency; the investment program or project must be part of the 5-year medium-term public investment plan approved by the city's People's Council; and the projects must have investment decisions by competent authorities. The City must arrange the local budget to repay all debts (principal, interest) when due.

Details in Decree 63/2017/ND-CP effective from July 5, 2017.

- Ngoc Duyen -

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