Gov't: Public debt remains at safe level
VietNamNet Bridge – As of December 31, 2013, public debt, Government debt and foreign debt was 55.4%; 43.1% and 42%, respectively, remaining in safe waters, according to Deputy PM Vu Van Ninh.
The Deputy PM has submitted a detail report on loan spending and public debt management to the National Assembly’s on-going fifth session.
Regarding loan structure, the Government’s direct loans accounted for 78% of total public debt; Government-guaranteed loans 21%; and local loans 1%.
The structure matches the national orientations on public debt management and foreign debt in 2011-2020 with a vision towards 2030.
According to the report, domestic investors of Government bonds represented 28% of the public debt structure. Japan is the biggest lender, occupying 17%; followed by the World Bank 13%; the Asian Development Bank 8%. Other creditors held 34%.
Viet Nam’s public debt came from Government bonds, ODA and foreign sponsors.
In addition, foreign loans have long-term durations, from 25 to 30 years, and low interest rates at 1-1.25% per year.
The Government has borrowed around VND690,910 billion over the last three years since the Law on Public Debt Management took effect on January 1, 2010.
Specifically, Government bonds were VND288,739 billion; foreign loans VND256,918 billion and mobilization of domestic capital VND165,253 billion.
Of the loans, 53.8% were spent on offsetting State budget overspending; 21.8% for projects on transport, irrigation, education and healthcare; and 24.4% for national target programs.