3-year Public debt management program for period from 2024 - 2026 in Vietnam

3-year Public debt management program for period from 2024 - 2026 in Vietnam

The 3-year Public pebt management program from 2024 - 2026 approved by the Prime Minister of Vietnam includes the following contents:

* Regarding borrowing and debt repayment of the Government of Vietnam

- The total borrowing limit of the Government of Vietnam for the period 2024 - 2026 is approximately 1,862.2 trillion VND, of which the borrowing for the central budget is about 1,818.3 trillion VND, and the borrowing for on-lending is about 43.9 trillion VND.

- The total debt repayment of the Government of Vietnam for the period 2024 - 2026 is maximally 1,102.8 trillion VND, of which direct debt repayment is about 976.4 trillion VND, and on-lending debt repayment is about 126.4 trillion VND.

- Proactively arrange resources to fully fulfill the debt repayment obligations of the Government of Vietnam, preventing overdue debts that could affect international commitments of the Government of Vietnam.

* Regarding the Government of Vietnam's guarantee limit

- For guarantees for the issuance of bonds by 02 policy banks: the guarantee limit for the Vietnam Development Bank in the period 2024 - 2026 is maximally 8,620 billion VND, the guarantee limit for the Social Policy Bank in the period 2024 - 2026 is maximally 11,590 billion VND; equivalent to the principal debt repayment obligations of the Government of Vietnam's guaranteed bonds maturing in the period 2024 - 2026.

- Implement strictly the objective of tightly controlling the Government of Vietnam’s guarantees for loans within the guarantee limit approved by the competent authority; the disbursement level must not exceed the principal debt repayment obligations in the year.

* Regarding borrowing and debt repayment of local authorities: control the budget deficit and debt limit of local authorities according to the provisions of the State Budget Law 2015, the Resolutions of the National Assembly on piloting several specific mechanisms and policies of some localities, and Resolution 23/2021/QH15 on the National Financial Plan and Public Borrowing and Debt Repayment for the 5 years period 2021 - 2025.

More details can be found in Decision 260/QD-TTg which comes into effect in Vietnam from March 31, 2024.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE