This year, the Government repays nearly 14.6 billion USD in debt

According to the plan on borrowing and repaying public debt in 2022 signed by Deputy Prime Minister Le Minh Khai on April 13, this year, the Government borrows up to 673,546 billion VND (equivalent to nearly 29.3 billion USD). This loan amount increased by more than 159,240 billion VND compared to 2021.

96% of this loan is used to balance the central budget (VND 646,849 billion), on-lending is VND 26,697 billion.

Sources of capital mobilization are mainly from the issuance of Government bonds, ODA loans and foreign incentives. In case of necessity, it will report to the competent authority for permission to issue foreign currency or issue Government bonds directly to the State Bank…

Regarding debt repayment, the Government will pay about 335,815 billion VND this year, equivalent to nearly 14.6 billion USD. Compared to 2021, this year’s debt payment level is about VND 30,117 billion lower. In which, the direct debt to the Government is 299,849 billion VND (about 13 billion USD), paid for on-lending projects 35,966 billion (nearly 1.6 billion USD).

In 2021, Vietnam’s debt targets are within safe limits approved by the National Assembly. Accordingly, public debt is about 43.7% of GDP, government debt is 39.5% of GDP, and foreign debt is 39% of GDP. The amount of government having to pay direct debt is less than 23% of budget revenue…

This year, the local government will borrow VND 28,637 billion and repay VND 6,111 billion.

The maximum loan guaranteed by the Government is 20,400 billion VND for the Bank for Social Policies. If this number is not used up in 2022, Policy Bank will be transferred to the following year for use. However, the total issuance of 2-year bonds is not more than 38,400 billion VND.

Particularly for foreign commercial loans that are not guaranteed by the Government, ie enterprises are self-borrowing, the maximum limit is 7.3 billion USD. The Government noted that the growth rate of short-term foreign debt balance is about 25% compared to the outstanding balance as of December 31, 2021.

Also according to the Government’s decision, the total loan amount in the next 3 years (2022-2024) is more than 2 million billion VND. 96% of these are loans to the central budget, the rest are loans for on-lending.

Total debt repayment to the Government in the next 3 years is more than 1.1 million billion dong, including direct debt payment of 971 trillion dong and on-loan debt of 145,000 billion dong. The Government ensures that the growth rate of the guaranteed loan balance does not exceed the GDP growth rate of the previous year and within the limit approved by the National Assembly. The local government overspending limit is about 0.3% of GDP annually.

Mr. Minh