6 types of information needed for national credit rating

The Prime Minister signed a decision to provide information for national credit rating.

Prime Minister Nguyen Tan Dung has just signed Decision 61/2013 on providing information and coordinating the implementation of national credit rating work.

Accordingly, the national credit rating is an index to evaluate the financial capacity as well as the ability to repay the principal and interest of a country's debts on time. The lower the national credit rating, the higher the risk of not being able to pay debts.

The national credit rating is an indicator of a country's financial capacity.

The purpose of providing information and data is to complete the database system and build an overview report on the socio-economic situation of Vietnam to serve the country's credit rating work.

6 types of information needed

According to the Decision, there are 6 types of information necessary for national credit rating work, including: 1) General information on socio-economics; 2) Fiscal information; 3) Information on currency and banking; 4) Information on foreign economic affairs; 5) Political information; 6) Other socio-economic information based on proposals from credit rating organizations, in accordance with legal regulations and the provision capacity of relevant agencies and organizations of Vietnam.

In which, general information on socio-economy includes: Long-term strategy, medium-term plan, annual socio-economic development plan and solutions; statistical data on implementation and forecast of socio-economy: Economic growth, national income, per capita income, savings rate, investment rate, inflation index, population, employment, unemployment rate and other related information.

Fiscal information includes: Fiscal policy and medium-term financial-budget plans; data on revenue, expenditure and state budget balance; state enterprise reform; government debt situation; government contingent debt obligations, public debt and foreign debt of the country; and other relevant information.

Monetary-banking information includes information on monetary policy and monetary policy tools (exchange rates, interest rates, required reserves, open market); information on the operations of the State Bank, credit institutions and banking system reforms; the situation and data on the balance of payments; foreign exchange reserves; bank credit; bad debt, provisioning and bad debt handling...

Provide periodic information

According to this Decision 61/2013, information and data are provided periodically (monthly, quarterly, annually) by relevant agencies to the Ministry of Finance. In case official data is not available by the deadline, the agencies shall provide the Ministry of Finance with the most updated estimated data.

The deadline for providing monthly periodic information is the 15th of the following month. The deadline for providing quarterly periodic information is the 30th of the first month of the following quarter.

The deadline for providing periodic annual information is February 28 of the following year. For data on plans and forecasts for the following year which are provided periodically each year, the deadline for providing information is December 15 of the implementation year.

Sovereign credit rating is a regular process.

In addition to providing information, the Decision also stipulates the coordination of national credit rating work. Accordingly, national credit rating work is a regular process to exchange updated information with investors, gradually enhance the country's reputation in the international arena and better meet the requirements of economic integration in the new period.

Decision 61/2013 stipulates: The Ministry of Finance is the unit in charge of organizing working sessions and discussions with credit rating organizations periodically (annually) and suddenly (in case of significant changes in the socio-economic situation).

Annually, the Ministry of Finance presides over and coordinates with relevant ministries, departments and branches to organize promotional activities, meetings and information exchange on Vietnam's socio-economic situation for investors, international financial institutions, export credit institutions that are OECD members and credit rating organizations, creating favorable conditions for capital mobilization activities in the international market and improving the national credit rating./.

According to vov.vn