Vietnam: Annual limits on Sovereign-guaranteed loans

Thu Hien

15:47, 02/07/2018

This is a new point of the Law on Public Debt Management 2017, which was approved by the 14th National Assembly of Vietnam at its 4th session on November 23, 2017 in comparison with the Law on Public Debt Management 2009.

According to the Law on Public Debt Management 2017 of Vietnam, annual limits on Sovereign-guaranteed loans are prescribed as follows:

- Annual Sovereign-guaranteed loan limit is determined provided that:

+ The growth rate of outstanding debt of sovereign guarantee does not exceed the growth rate of GDP of the previous year; and

+ Within Sovereign-guaranteed loan limit for the 5-year period ratified by the National Assembly;

- According to the need and capacity of raising fund and the Sovereign-guaranteed loan limit for a 5-year period ratified by the National Assembly, the Ministry of Finance shall submit the guaranteed loan limit of the planning year to the Government for approval.

- Annual limits on Sovereign-guaranteed loans is one of the contents of the annual public borrowing and repayment plans.

“Limit on sovereign guarantee” means a maximum sum of money that the sovereign guarantees for 1 year or 5 years, being determined by actual sum of loan minus (-) principal. (Clause 21 Article 3 of the Law on Public Debt Management 2017 of Vietnam, effective from July 01, 2018)

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

1 lượt xem

- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn