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

Ngoc Thuy

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