Public Debt Management Program 2022-2024 and Loan and Public debt payment plan in 2022 approved

The objective is to ensure capital mobilization through diversifying sources of capital and method of internal loans and borrowing from aboard in order to meet the demand on government budget balance, including borrowed capital to implement fiscal policies supporting the socio-economic recovery and development program.

In addition, strictly controlling safety indicators of public debt, ensuring the indicators are within the limits approved by the National Assembly, and promoting the development of the domestic capital market.

illustration photo. Source: Internet

The maximum loan amount for 2022-2024 is VND2,044 trillion

Regarding the Public Debt Management Program 2022-2024, the Decision clearly states: the total Government loan amount in the 2022-2024 period is about VND2,044 trillion. In particular, borrowing to the central budget is about VND1,927 trillion, on-lending about VND117 trillion.

Total debt repayment of the Government in the 2022-2024 period is VND1,116 trillion, of which direct debt repayment is about VND971 trillion, loan repayment is about VND145 trillion.

Furthermore, actively arrange resources to fulfill the Government's debt repayment obligations, avoiding overdue debt, affecting the international commitments of the Government.

The Government guarantee level must ensure that the growth rate of the Government-guaranteed debts does not exceed the growth rate of the gross domestic product of the previous year and is within the Government guarantee limit for the 2021-2025 period which is approved by the National Assembly.

For the two policy banks, the maximum level of annual guarantee for the Vietnam Development Bank in the 2022-2024 period is equal to the annual obligation to repay the principal of government-guaranteed bonds (VND15,737 billion); the guarantee level for the Bank for Social Policies in the 2022-2024 period is up to the annual obligation to repay the principal of the Government-guaranteed bonds (VND3,851 billion) plus the issuance obligation to implement the policies on preferential loans is stipulated in Resolution No. 43/2022/QH15 dated January 11, 2022, of the National Assembly on fiscal and monetary policies to support the program of socio-economic recovery and development (Resolution No. 43/2022/QH15) up to VND38,400 billion.

Thoroughly grasping the objective of strictly controlling the granting 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 following the provisions of the Law on State Budget 2015. Accordingly, the local budget deficit in the 2022-2024 period is about 0.3% of GDP annually.

In 2022, the Government's debt repayment will be about VND335,815 billion

Regarding the plan for borrowing and repaying public debt in 2022, the Government's borrowing plan is up to VND673,546 billion, including loans for central budget balance of up to VND646,849 billion, of which borrowing to offset the central budget deficit maximum amount of VND450,700 billion, borrowing to repay the principal is not more than VND196,149 billion; on-lending is VND26,697 billion.

Regarding flexible sources of mobilization from Government bond issuance instruments, the average issuance term may be less than 9 years. In case of necessity, it should be reported to the issuing authority in foreign currency; ODA loans, foreign preferential loans; and in case of necessity, it could borrow from other lawful financial sources or issue Government bonds directly to the State Bank of Vietnam.

The Government's debt repayment is about VND335,815 billion, of which the Government's direct debt payment is not more than VND299,849 billion, the repayment of on-lending projects is VND35,966 billion.

Regarding loans guaranteed by the Government, the maximum bond issuance guarantee for the Bank for Social Policies is VND20,400 billion (equalling the obligation to repay the principal of government-guaranteed bonds due within a year of VND1,400 billion plus the issuance of a bank guarantee to implement preferential lending policies specified in Resolution No. 43/2022/QH15 of the National Assembly is VND19,000 billion).

In the case that in 2022, the issuance guarantee limit is not used up to implement the preferential lending policies as specified in Resolution No. 43/2022/QH15 of the National Assembly, allowing the Bank for Social Policies to transfer to 2023 in order to implement, ensuring that the total actual issuance volume in two years does not exceed VND38,400 billion following 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 based on the Ministry of Finance's appraisal of the dossier requesting 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.

In terms of guarantees for domestic and foreign loans, the withdrawal amount 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 VND28,637 billion.

Local government debt repayment is VND6,111 billion, including principal payment is VND3,637 billion and interest payment is VND2,474 billion.

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 US$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.