Government approves public debt management program in 2022-2024 and plan on borrowing and paying public debt in 2022
This program has the objective of ensuring the task of mobilizing loans through diversifying capital sources and methods of borrowing at home and abroad to meet the needs of the State budget balance, including mobilizing loan capital for implementation. implementing fiscal policies to support the program of socio-economic recovery and development.
In addition, it is necessary to strictly control debt safety indicators, ensure them within the limits approved by the National Assembly and promote the development of the domestic capital market.
The maximum loan amount for the period 2022-2024 is about VND 2,044 trillion
Regarding the 3-year public debt management program for the period of 2022 – 2024, the Decision clearly states: The total loan amount of the Government in the period 2022 – 2024 is up to about VND 2,044 trillion, of which loans to the central budget are about 1,927 thousand billion dong, on-lending about 117 trillion dong.
Total debt repayment of the Government in the period of 2022 – 2024 is about 1,116 trillion dong, of which direct debt repayment is about 971,000 billion dong, and on-loan repayment is about 145,000 billion dong.
Actively arrange resources to fulfill the Government’s debt repayment obligations, prevent overdue debt from happening, affecting the Government’s international commitments.
Regarding the Government guarantee, the Government guarantee level ensures that the growth rate of the Government-guaranteed outstanding loans does not exceed the growth rate of the gross domestic product of the previous year and is within the Government guarantee limit for the period 2021 – 2025. Parliament approved.
For the two policy banks, the annual guarantee for the Vietnam Development Bank in the period of 2022 – 2024 is up to equal to the annual obligation to repay the principal of the Government-guaranteed bonds to maturity (VND 15,737 billion). The maximum amount of guarantee for the Social Policy Bank in the period of 2022 – 2024 is equal to the annual obligation to repay the principal of the Government-guaranteed bonds (VND3,851 billion) plus the issuance obligation to fulfill the The preferential lending policy is stipulated in the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022 on fiscal and monetary policies to support the socio-economic recovery and development program (Decree No. Decision No. 43/2022/QH15) up to 38,400 billion VND.
Thoroughly grasping the objective of strictly controlling the grant of Government guarantees for loans within the guarantee limit approved by the competent authority.
Regarding borrowing and debt repayment of local governments, controlling overspending and debt limits of local governments according to the provisions of the 2015 State Budget Law, according to which the local budget deficit in the period of 2022 – 2024 is about 0.3% of GDP annually.
In 2022, the Government’s debt repayment will be about VND 335,815 billion
Regarding the plan for borrowing and repaying public debt in 2022, the Government’s borrowing plan is up to VND 673,546 billion, including: Loans for central budget balance up to VND 646,849 billion, of which loans to offset the central budget deficit maximum amount is 450,700 billion VND, borrowing to repay principal is not more than 196,149 billion VND, on-lending is 26,697 billion VND.
Flexible sources of mobilization from Government bond issuance instruments, the average issuance term may be less than 9 years. In case of necessity, report to the issuing authority in foreign currency; ODA loans, foreign preferential loans. In case of necessity, borrow from other lawful financial sources or issue Government bonds directly to the State Bank of Vietnam.
The Government’s debt repayment is about 335,815 billion VND, of which the Government’s direct debt payment is not more than 299,849 billion VND, the repayment of on-lending projects is 35,966 billion VND.
Regarding loans guaranteed by the Government, the maximum bond issuance guarantee for the Bank for Social Policies is VND 20,400 billion (equal to the obligation to repay the principal of government-guaranteed bonds due within a year of VND 1,400 billion plus the term). the maximum amount of underwriting to implement preferential lending policies specified in Resolution No. 43/2022/QH15 of the National Assembly is VND 19,000 billion).
In the event that in 2022, the issuance guarantee limit is not used up to implement the preferential lending policies specified in the National Assembly’s Resolution No. 43/2022/QH15, allowing the Bank for Social Policies to move to the next year. 2023 to implement, ensuring that the total actual issuance volume in 2 years does not exceed VND 38,400 billion according to Resolution No. 43/2022/QH15 of the National Assembly.
The bond issuance guarantee level for the Vietnam Development Bank shall not exceed the obligation to repay the principal of the Government-guaranteed bond due within the year. The specific bond issuance level for the Vietnam Development Bank will be determined on the basis of the Ministry of Finance’s appraisal of the application file for government-guaranteed bond issuance in accordance with Decree No. 91/2018. /ND-CP dated June 26, 2018 of the Government on the issuance and management of Government guarantees.
For guarantees for domestic and foreign loans, the withdrawn capital must not exceed the principal repayment amount during the year.
Regarding the loan and repayment plan of the local government, borrowing from the Government’s foreign loans and other domestic loans is about 28,637 billion VND. Local government debt repayment is 6,111 billion dong, including principal payment 3,637 billion dong and interest payment 2,474 billion dong.
For foreign commercial loans of enterprises that are not guaranteed by the Government, the limit of medium and long-term foreign commercial loans of enterprises and credit institutions by self-borrowing and self-payment method is up to USD 7,300 million. ; The growth rate of short-term foreign debt balance is about 25% compared to the outstanding balance as of December 31, 2021.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
