Public debt plan in Vietnam 2023 to have the value of 644,409 billion VND

Public debt plan in Vietnam 2023 to have the value of 644,409 billion VND

Specifically, according to Decision 458/QD-TTg dated April 28, 2023, the Government's plan for public debt in 2023 is up to VND 644,409 billion, including:

- Maximum loan for the central budget balance of 621,015 billion VND, of which the maximum loan to offset the central budget deficit is 430,500 billion VND, and the loan to repay principal is not more than 190,515 billion VND.

- Borrowing for on-lending: about 23,394 billion VND.

Flexible sources of mobilization from Government bond issuance instruments, the average issuance term may be less than 9 years, if necessary, report to the issuing authority in foreign currency;

ODA loans, foreign preferential loans, and, in cases of necessity, borrowing from other lawful financial sources or issuing Government bonds directly to the State Bank of Vietnam.

Public debt repayment plan in Vietnam 2023

Accordingly, the Government's plan to repay public debt in 2023 is about VND 327,287 billion, of which the Government's direct debt payment does not exceed VND 293,405 billion, and the repayment of on-lending projects is about VND 33,882 billion.

3-year public debt management program for the period of 2023-2025

The three-year public debt management program for the period 2023–2025 is as follows:

- Regarding government borrowing and debt repayment

+ Total government loans in the period of 2023–2025 are about VND 1,873 trillion, of which loans to the central budget are about VND 1,813 trillion, and about VND 59 trillion for on-lending.

+ Total debt repayment of the Government in the period of 2023–2025 is about 1,098 trillion VND, of which direct debt repayment is about 967 trillion VND, and on-loan repayment is about 131 trillion VND.

+ Actively arranging resources to fully fulfill the Government's debt repayment obligations, avoiding overdue debts, affecting the Government's international commitments.

- Regarding Government guarantee:

+ The Government guarantee level ensures that the growth rate of the Government-guaranteed debt balance does not exceed the GDP growth rate of the previous year and is within the Government guarantee limit for the period 2021–2025 approved by the National Assembly.

+ For guarantee for 02 policy banks to issue bonds: the maximum guarantee level for Vietnam Development Bank in the period of 2023-2025 is VND 11,037 billion, equal to the obligation to repay the principal of government-guaranteed bonds due in the period of 2023-2025;

The maximum guarantee level for the Social Policy Bank in the period of 2023–2025 is VND 27,851 billion, equal to the obligation to repay the principal of government-guaranteed bonds due in the period of 2023–2025 (a maximum of VND 8,451 billion). plus the underwriting limit to implement the preferential lending policies specified in Resolution 43/2022/QH15 of the National Assembly ( maximum of VND 19,400 billion).

The guarantee level for the Bank for Social Policies for the period 2023–2025 mentioned above does not include the level of guarantee for the implementation of preferential lending policies specified in Resolution 43/2022/QH15 of the National Assembly that have not been used up in 2022 and are transferred to 2023 according to Decision 448/QD-TTg dated April 12, 2022 of the Prime Minister of Vietnam.

+ Thoroughly grasping the objective of strictly controlling the grant of Government guarantees for loans within the guarantee limit approved by competent authorities.

- Regarding borrowing and debt repayment by local governments: controlling overspending and debt limits of local governments in accordance with the provisions of the Law on State Budget 2015; in which, the annual local budget deficit in the 2023–2025 period is about 0.3% of GDP.

More details can be found in Decision 458/QD-TTg takes effect from the date of signing.

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