Vietnam’s Decree No. 93/2018/ND-CP: Annual borrowing and repayment plan

On June 30, 2018, the Government of Vietnam issued Decree No. 93/2018/ND-CP providing for provincial-government debt management. A notable content of this Decree is the regulation on the annual borrowing and repayment plan. To be specific:

Time for formulating the annual borrowing and repayment plan

The Provincial Finance Department shall annually formulate the provincial borrowing and repayment plan at the same time when the state budget estimate is formulated, and report it to the Provincial People's Committee for submission to the Provincial People's Council for reference before it is submitted to the Ministry of Finance for consolidation.

If the 5-year borrowing and repayment plan of a provincial government must be submitted to the Ministry of Finance at the time different from the time of organizing the meeting of the Provincial People’s Council, the Provincial People's Committee shall report the standing board of the Provincial People’s Council for reference before it is submitted to the Ministry of Finance for consolidation, and report it to the Provincial People’s Council at the next meeting.

Grounds for formulation of annual borrowing and repayment plan

The annual borrowing and repayment plan shall be formulated based on the following grounds:

- The provincial government’s socio-economic development and national defense and security duties;

- Assignment of budget revenue sources and spending tasks, and ratio of revenues to be distributed and additional funding for budget balancing allocated by higher-level budgets. Outstanding balance and maximum allowable debt limit and debt obligations;

- Legislative documents promulgated by regulatory authorities providing guidance on formulation of socio-economic development plan, state budget estimates, estimates of borrowing and debt repayment in the following year;

- The 5-year financial plan, the 3-year finance-state budget plan, the medium-term plan for public investment funded by state budget;

- State budget situation, borrowing and debt repayment in the previous year.

Nghị định 93/2018/NĐ-CP: Kế hoạch vay, trả nợ hằng năm

Requirements on formulation of annual borrowing and repayment plan

- Borrowed funds and amounts of debt payable must be separately specified in the plan according to forms and time limits prescribed by competent authorities;

- The plan is made on the basis of signed loan agreements and commitments to pay debts which are mature in the budget estimating year;

- Estimated borrowed funds for making up the provincial-government budget deficit must be conformable with its capacity of budget balancing, each lending source, capacity of repaying debts, debt limit of each provincial government and public debt safety limits set in the resolution of the National Assembly.

Contents of a provincial government’s annual borrowing and repayment plan

- Assessment of the performance of debt management tasks by the provincial government in the current year;

- Estimated outstanding balance and debt limit remaining in the budget year of the provincial government;

- Planned borrowed amounts, lenders, borrowing plan and expenses thereof; borrowed amounts for making up budget deficit and repaying outstanding principal; debt repayment obligations and funds for repaying debts; forecasts about risks that might occur in the planning year;

- Solutions for implementing the program for ensuring budget safety and sustainability of the provincial government.

Time limits for guidance, formulation, consolidation, decision and assignment of annual borrowing and repayment plan of a provincial government shall follow regulations in Chapter on formulation of state budget estimates of the Law on state budget and Decree No. 163/2016/ND-CP of Vietnam’s Government.

Preliminary scheme for issuance of municipal bonds

If an annual borrowing and repayment plan includes funds from issuance of municipal bonds, the Provincial People’s Committee shall formulate a preliminary scheme for issuance of municipal bonds, and submit it to the Provincial People’s Council for approval at the same time when its annual borrowing and repayment plan and budget estimates are approved.

More details can be found in Decree No. 93/2018/ND-CP of Vietnam’s Government, which takes effect from July 01, 2018.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

10 lượt xem



Related Document
  • Address: 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd.
Editorial Director: Mr. Bui Tuong Vu - Tel. 028 3935 2079
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;