(VOV) -The Government has affirmed that Vietnam’s public debts are still within the limit.
- 2011′s public debt accounts for 54.9 percent of GDP
- Public debt down 1.9 pct
- National strategy aims for public debt reduction
According to a report sent to National Assembly deputies on June 3, the Government has mobilized a total amount of lending capital worth approximately VND690,910 billion since the Law on Public Debt Management took effect in 2010.
By December 31, 2012, Vietnam’s public debts, government debts, and debts owed by foreign entities accounted for 55.4%, 43.1% and 42% of the country’s GDP, respectively.
The reports showed public debts are lower than the permitted level at 65% of GDP, within the strategic framework of national public management for the 2011-2020 period with a vision to 2030.
28% of debt owners are Government bond holders. Japan is among the biggest debt owners, accounting for 17% of Vietnam’s total external debts, followed by the World Bank (WB), 13%, and the Asian Development Bank (ADB), 8%.
Most of Vietnam’s public debts come from Government bonds, official development assistance (ODA) and incentive loans from international donors, said the report.
The WB grants interest rates of around 1.25% plus management fee of 0.75% for the duration of five years to 25 years. The ADB offers a rate of 1-1.5% for the duration of up to 30 years. The Japanese government provides ODA loans with interest rates of 1-2%/year in three decades.
The interest rates of Government bonds which have been adjusted in line with the country’s monetary policy are always lower than the deposit rates of the whole commercial banking system.
Over the past three years, the Government has used 53.8% of its fund – equivalent to VND360.891 billion – to cover the State budget overspending. VND146,000 billion or 21.8% of the Government’s mobilized capital has been allocated for projects on transport, irrigation, education and health care.
The Government has also provided VND163,993 billion or 24.4% of its mobilized capital for national target programmes, focused on key areas such as electricity, oil and gas, industry, and urban infrastructure.
Đăng ký: VietNam News
