PM APPROVES 2021-2023 PUBLIC DEBT MANAGEMENT PROGRAMME

The Prime Minister has recently approved a public debt management programme for the 2021-2023 period.

Under the programme, the total borrowing over the next three years will be VND1,738.4 trillion (US$75.8 billion), of which VND1,604 trillion (US$70 billion) will go to the central budget.

The local budget spending deficit is limited at 0.2% of GDP, as stipulated in the 2015 Law on State Budget, and the debt repayment obligation of local governments is approximately VND18.4 trillion (US$801.8 million).

With regards to foreign commercial loans by enterprises and credit institutions, the growth rate for short-term credit is capped at 18-20% per year and the net maximum medium-term and long-term loans are around US$6.35-7 billion per year.

For 2021, the government is expected to borrow VND624.221 trillion (US$27.2 billion), including VND527.357 trillion (US$23 billion) from domestic sources and VND96.864 trillion (US$4.2 billion) from foreign lenders.

Of this figure, VND579.772 trillion (US$25.3 billion) will be used to balance the central budget while the remaining VND44.449 trillion (US$1.9 billion) will be spent on lending to other borrowers.

The government is expected to repay debts of VND394.506 trillion (US$17.2 billion) in 2021.

Source: VCCI