Government plans to borrow more than $75 billion in 3 years

About Government Guarantee,Prime Minister Pham Minh ChinhRequest to control the maximum level of issuance guaranteed by the Government equal to the annual principal repayment obligation with 2 policy banks (Vietnam Bank for Social Policies and Vietnam Development Bank). At the same time, limit the issuance of new guarantees for enterprises borrowing domestically and abroad; the annual limit on domestic and foreign loan guarantees ensures that the growth rate of outstanding government-guaranteed debt does not exceed the GDP growth rate of the previous year.

On borrowing and debt repayment of local governments, control the deficit and debt limits according to the provisions ofState Budget Law2015. Accordingly, the local budget deficit is about 0.2% of GDP annually. The debt repayment obligation of local authorities is about 18,400 billion VND.

On foreign commercial loan limits of enterprises and credit institutionsBy the method of self-borrowing and self-repaying, the growth rate of short-term debt balance will be controlled at a maximum of 18-20% per year; the annual limit of medium and long-term net borrowing will be a maximum of about 6.35-7 billion USD, ensuring the country's foreign debt target within the allowable limit.

In 2021 alone, the Government borrowed VND 624,221 billion (domestic VND 527,357 billion and foreign VND 96,864 billion). Of this, VND 579,772 billion was borrowed to balance the central budget and VND 44,449 billion was borrowed for re-lending.

This year, the Government plans to repay 394,506 billion VND in debt, of which direct debt is 366,224 billion VND and debt repayment for re-lending projects is 28,282 billion VND.

This year, the local government plans to borrow about VND28,797 billion from foreign loans from the Government and other sources. The local government's debt repayment is VND6,662 billion (repaying principal VND3,997 billion and interest VND2,665 billion).

For foreign commercial loans of enterprises not guaranteed by the Government, enterprises can borrow a maximum of 6.35 billion USD by self-borrowing and self-repaying; the growth rate of short-term foreign debt is about 18-20% compared to the outstanding debt as of December 31, 2020.

Prime Minister Pham Minh Chinh requested the Ministry of Finance to proactively arrange resources to fully fulfill the Government's debt repayment obligations, not allowing the situation to occur.overdue debt, affecting international commitments. This agency is also assigned to proactively issue government bonds, linking issuance with debt portfolio restructuring and developing the government bond market.