Vietnamese government promulgated Decision 1869/QD-TTg dated November 5, 2021 amending and supplementing a number of articles of the Decision 856/QD-TTg approving the 3-year public debt management program from 2021 to 2023 and the plan for borrowing and repaying public debt in 2021. Accordingly, the plan for borrowing and paying public debt in 2021 is adjusted as follows:
Article table of contents
The government adjusts plan to borrow and repay public debt in 2021 (Artwork)
* Government loan plan is 514,297 billion VND (previously it was 624,221 billion VND), including:
Issuing government bonds and borrowing from domestic sources VND 463,000 billion (previously VND 527,357 billion ) and borrowing from abroad VND 51,297 billion (previously VND 96,864 billion), of which:
Borrowing to the central budget (NSTW) is 33,898 billion VND (previously 579,772 billion VND), and on-lending is 17,399 billion VND (previously 44,449 billion VND).
* Government debt repayment VND 365,932 billion (previously VND 394,506 billion), of which direct repayment of Government debt 338,415 billion (previously VND 366,224 billion), repayment of on-lending projects 27,517 billion VND (previously VND 28,282 billion).
* Regarding Vietnamese government-guaranteed loans
- The bond issuance guarantee level for the two policy banks will be determined on the basis of the Ministry of Finance's appraisal of the issuance request documents of the two policy banks in accordance with Decree 91/2018/ND-CP of Vietnam.
- Withdrawal of domestic and foreign loans of enterprises guaranteed by the Government up to the obligation to repay the principal in the year.
* Loan and repayment plan of the local government in 2021
- Borrowing from the Government's foreign loans is expected to be 12,612 billion VND. In the event that in the last months of the year, localities recover their economic activities and have demand for loans for development investment, the total loan amount should be guaranteed within the amount of VND 28,797 billion approved by the National Assembly of Vietnam under Resolution 128/2020/ QH14 dated November 12, 2020 on the state budget estimate for 2021.
(Previously, borrowing from foreign loans of the Government and other sources of loans with the amount of about 28,797 billion VND).
- Repayment of local government debt of VND 6,662 billion, including principal payment of VND 3,997 billion and interest payment of VND 2,665 billion.
* Foreign commercial loans of enterprises not guaranteed by the Vietnamese Government:
The maximum limit for medium and long-term foreign commercial loans of enterprises and credit institutions by self-borrowing and self-pay method is 7,000 million USD (previously the maximum was 6,350 million USD); The growth rate of short-term foreign debt balance is about 25% (previously about 18%-20%) compared to the outstanding balance as of December 31, 2020.
In addition, the Government requested ministries, ministerial-level agencies, and People's Committees of provinces and centrally run cities to continue to implement drastic and synchronous solutions to promote disbursement of foreign loans in the remaining months of 2021.
Decision 1869/QD-TTg of Vietnam takes effect from November 5, 2021.
Bao Ngoc
