The government has set targets for public debts, government debts and foreign debts to ensure they are within the limit and lower than the national financial plan in the 2016 – 2020 period.
The government expected to allocate VND379.1 trillion (US$16.38 billion) for debt payment in 2020, according to a report.
This includes direct financial obligation of the government of VND348 trillion (US$15.03 billion), including VND287 trillion (US$12.4 billion) for domestic lenders and VND61 trillion (US$2.63 billion) for foreign debtors; payment obligation of re-loan of VND30.1 trillion (US$1.3 billion).
This payment schedule would result in total outstanding loans of the government as of the end of 2020 at 48.5% of the GDP.
Meanwhile, the government is scheduled to mobilize VND459.4 trillion (US$19.85 billion) in loans, including VND217.8 trillion (US$9.41 billion) to cover state budget deficit; VND217.8 trillion for principal payment; and VND9.1 trillion (US$393.3 million) for social insurance.
Following the report, the government plans to issue government bonds domestically worth VND300 trillion (US$12.96 billion) with maturity period of 5 years onward; disbursement of ODA and preferential loans of VND107.4 trillion (US$4.64 billion) and other sources of VND95.4 trillion (US$4.12 billion).
The government also plans no issuance of government guarantee for enterprises seeking loans domestically or abroad.
It is estimated outstanding loans of enterprises in short-term from foreign sources in 2020 could increase by 12 – 15% compared to that of in 2019.
Overall, the government estimated public debt at the end of 2020 at 54.3% of the GDP, government debts of 48.5% of the GDP and foreign debt of 45.5%. All figures are within the limit and lower than the national financial plan in the 2016 – 2020 period, with the limit for corresponding rates of 65%, 54% and 50%.
As of the end of 2019, the public debt would remain at 56.1% of the GDP, government debts of 49.2%, and foreign debts of 45.8%. Hanoitimes
The banking sector had made considerable headway into settling bad debt, restructuring credit institutions and developing the banking system two years since the National Assembly issued a resolution on the industry.
Many banks are auctioning mortgaged assets, mainly real estate, worth trillions of Vietnamese dong to speed up the resolution of non-performing loans.