Vietnam: Bases for preparing 5-year public borrowing and repayment plans

According to Decree No. 94/2018/ND-CP of Vietnam’s Government, 05-year public borrowing and repayment plans shall be prepared based on the followings:

1. Bases for preparing 5-year public borrowing and repayment plans

- Implementation of socio-economic development plans, 5-year national financial plans, midterm public investment plans and previous 5-year public borrowing and repayment plans.

- Objectives and orientation for socio-economic development, finance and state budget, public investment and macroeconomic balances according to Resolutions of the National Assembly.

- Law regulations on finance - state budget, public debts, public investment, currency and credit.

- Guidelines provided by the Government for preparing socio-economic development plans, 5-year financial plans and midterm public investment plans.

- Execution of loan contracts and use of current debt instruments; demand for use of loans and forecasts about domestic and external loans that create negative impact on the capacity for raising loans under loan contracts and issuance of debt instruments in 5 planning years.

2. Bases for preparing annual public borrowing and repayment plans

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

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

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

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

- 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.

Decree No. 94/2018/ND-CP of Vietnam’s Government takes effect from July 01, 2018.

- Thanh Lam -

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