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Thursday, December 1, 2022

Government to borrow over VND644 trillion in 2023

By Van Phong

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HCMC – The Government plans to borrow a total of VND644 trillion next year, around VND27 trillion higher than this year, according to a report to the National Assembly on public debt in 2022 and 2023.

The capital will be mobilized from different sources, including government bonds, official development assistance (ODA) loans and foreign preferential loans.

When necessary, the Government will consider issuing bonds directly to the State Bank of Vietnam and borrowing loans from other sources.

In 2022, the Government has mobilized around VND619.5 trillion, of which 95% of domestic capital was mobilized through G-bond sales.

As the central budget revenue in 2022 exceeds the estimated figure and the disbursement of public investment is slow, G-bond issues are needed to satisfy budget expenditure requirements.

Regarding foreign capital mobilization, concessional loans reached nearly US$185 million between January and September. The loan interest rate is 0.1% per year within 40 years, with a grace period of 10 years.

Until the end of this year, the Government expects to receive an additional US$188 million from this source.

According to the report, the Government’s direct debt payment is expected to reach VND293,405 billion in 2022, of which some 65% is for the principal and the rest for the interest. The total debt repayment of the Government is estimated at VND324,583 billion.

The Government assessed that the public debt in 2022 has been under strict control and within the cap approved by the National Assembly. This helps ensure national financial security and plays an important role in implementing fiscal policy to cope with macro risks.

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