Plan on borrowing and repaying public debt in 2022 and expected 3-year public debt management program in a period of 2022-2024

1. Objectives:
a) Ensuring task of mobilizing loans through diversifying domestic and foreign sources and methods of borrowing to meet needs of the State budget balance, including mobilizing loan capital to implement policies; fiscal support program for socio-economic recovery and development.
b) Strictly control debt safety indicators, ensuring them within the limits approved by the National Assembly.
c) Promote the development of the domestic capital market.
2. Expected 3-year public debt management program for the period 2022-2024:
a) Regarding borrowing and debt repayment of the Government
- Total government loans in the period 2022-2024 are about VND 2,044 trillion, of which loans to the central budget are about VND 1,927 trillion, and about VND 117 trillion for on-lending.
- Total debt repayment of the Government in the period of 2022-2024 is about 1,116 trillion VND, of which direct debt repayment is about 971 trillion VND, loan repayment is about 145 trillion VND.
- Actively arrange resources to fully fulfill the Government's debt repayment obligations, so as not to allow overdue debts to affect the Government's international commitments.
b) Government guarantee
- The Government guarantee level ensures that the growth rate of the Government-guaranteed debt balance does not exceed the growth rate of the gross domestic product of the previous year and within the Government guarantee limit for the period 2021-2025 approved by the National Assembly.
- For 02 policy banks: the annual guarantee level for the Vietnam Development Bank in the period 2022-2024 is maximum equal to the annual obligation to repay the principal of government bonds guaranteed to be due (VND 15,737 billion); The guarantee level for the Bank for Social Policies in the period of 2022-2024 is up to the annual obligation to repay the principal of the Government-guaranteed bonds (VND3,851 billion) plus the issuance obligation to implement the policies. The preferential loan policy is stipulated in Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the Socio-economic recovery and development program (Resolution). No. 43/2022/QH15) up to 38,400 billion VND.
- Thoroughly grasping the objective of strictly controlling the grant of Government guarantees for loans within the guarantee limit approved by the competent authority.
c) Regarding borrowing and debt repayment of local governments: control overspending and debt limits of local governments according to the provisions of the 2015 State Budget Law, according to which the local budget deficit in the period 2022- 2024 about 0.3% of annual GDP.
3. Plan for borrowing and repaying public debt in 2022:
a) The Government's loan plan is up to VND 673,546 billion, including:
- Maximum loan for central budget balance of 646,849 billion VND, of which maximum loan to offset central budget deficit is 450,700 billion VND, loan to repay principal is not more than 196,149 billion VND.
- On-lending loan: 26,697 billion VND.
Flexible mobilizing sources from (i) Government bond issuance instruments, the average issuance term may be less than 9 years. In case of necessity, report to the issuing authority in foreign currency; (ii) ODA loans, foreign preferential loans; and (iii) in case of necessity, borrow from other lawful financial sources or issue Government bonds directly to the State Bank of Vietnam.
b) Government debt repayment is about 335,815 billion VND, of which direct repayment of Government debt is not more than 299,849 billion VND, repayment of on-lending projects is 35,966 billion VND.
c) Regarding loans guaranteed by the Government:
- The maximum bond issuance guarantee for the Bank for Social Policies is VND 20,400 billion (equal to the obligation to repay the principal of government-guaranteed bonds due within the year of VND 1,400 billion plus the underwriting limit to implement the bond issuance) to implement preferential lending policies specified in Resolution No. 43/2022/QH15 of the National Assembly, up to a maximum of VND 19,000 billion). In the event that in 2022, the underwriting limit is not used up to implement the preferential lending policies specified in Resolution No. 43/2022/QH15 of the National Assembly, allowing the Bank for Social Policies to move to the next year. 2023 to implement, ensuring that the total actual issuance volume in 2 years does not exceed VND 38,400 billion according to Resolution No. 43/2022/QH15 of the National Assembly.
- The bond issuance guarantee for the Vietnam Development Bank shall not exceed the obligation to repay the principal of the Government-guaranteed bond due within the year. The specific bond issuance level for the Vietnam Development Bank will be determined on the basis of the Ministry of Finance's appraisal of the application file for government-guaranteed bond issuance in accordance with Decree No. 91/2018. /ND-CP dated June 26, 2018 of the Government on the issuance and management of Government guarantees.
- For guarantees for domestic and foreign loans, the capital withdrawal amount must not exceed the principal repayment amount in the year.
d) Loan and repayment plan of the local government:
- Borrowing from the Government's foreign loans and other domestic loans is about VND 28,637 billion.
- Repayment of local government debt is 6,111 billion VND, including principal payment 3,637 billion VND and interest payment 2,474 billion VND.
Foreign commercial loans of enterprises that are not guaranteed by the Government: The maximum limit of medium and long-term foreign commercial loans of enterprises and credit institutions by self-borrowing and self-payment method is up to USD 7,300 million. ; The growth rate of short-term foreign debt balance is about 25% compared to the outstanding balance as of December 31, 2021.
4. Implementation organization
a) Ministries, ministerial-level agencies, People's Committees of provinces and centrally run cities:
- Continue to drastically and synchronously implement the guiding views and policies and solutions to restructure the state budget, manage public debt to ensure a safe and sustainable national finance in Resolution No. 07-NQ/TW dated November 18, 2016 of the Politburo, Resolution No. 51/NQ-CP dated June 19, 2017 of the Government on the Government's action program to implement Resolution No. 07-NQ/ Politburo's Central Committee and Resolution No. 23/2021/QH15 dated July 28, 2021 of the National Assembly on the National Financial Plan and the 5-year borrowing and repayment of public debt for the 2021-2025 period;
- Perform the assigned tasks in Resolution No. 43/2022/QH15 of the National Assembly and Resolution No. 11/NQ-CP dated January 30, 2022 of the Government on the Socio-economic Recovery and Development Program Assembly and implementing Resolution No. 43/2022/QH15 of the National Assembly.
- For the Government's foreign loans for programs and projects, the ministries, central agencies and localities are assigned to urgently allocate the detailed 2022 central budget public investment plan according to the list. , the allocated capital level of each project, send the allocation plan for the foreign capital portion to the Ministry of Planning and Investment and the Ministry of Finance to monitor the implementation and control disbursement according to the estimate.
- The Ministry of Planning and Investment shall coordinate with the Ministry of Transport to ensure the arrangement of the medium-term public investment plan for the 2021-2025 period and the annual estimate from 2022 to fully and on time pay the payment obligation, debt for foreign loans guaranteed by the Government of projects implemented in the form of BT, so as not to negatively affect Vietnam's national credit coefficient and the Government's reputation. Ministries and branches need to strengthen coordination in seriously implementing the Government's commitments, avoiding ineffective coordination, not taking full responsibility, leading to late payment of debts.
- Perform state management, monitor, examine, supervise, inspect, report and provide information on public debt, government debt and local government debt according to regulations.
b) Ministry of Finance:
- Actively structuring loan mobilization, domestic and foreign issuance tenor, linking the issuance with restructuring the debt portfolio and developing the Government bond market.
- Flexible use of capital mobilized for the program of socio-economic recovery and development and capital mobilized according to the national financial plan and borrowing and repaying public debt for 5 years, annually.
- Closely monitor the targets of the National Financial Plan and borrow and repay the 5-year public debt in the 2021-2025 period; in case of big changes or risks, take the lead in reporting and submitting to the Government and Prime Minister for timely reporting to competent authorities for consideration and decision.
- Submitting to the Prime Minister for approval the specific issuance level of Government-guaranteed bonds to the Vietnam Development Bank based on the Government's Decree No. 91/2018/ND-CP dated June 26, 2018 on the issuance and Government guarantee management, this Decision and the bond issuance scheme of the Vietnam Development Bank.
- Announce the maximum limit allowed to issue government-guaranteed bonds and direct and supervise the Bank for Social Policies to mobilize capital from bond issuance in accordance with law.
- Continue to promote the development of the domestic capital market and the Government bond market in both breadth and depth in the direction of diversifying products and investor base, prioritizing the development of long-term investors and attract the participation of foreign investors in the capital market and the bond market.
- Research and apply the statistical method of external debt of the public and private sectors according to the principle of the place of residence of the creditor in order to be more consistent with international standards; at the same time, monitor foreign debt targets according to foreign currency criteria to manage exchange rate risks.
- Improve efficiency and strengthen public debt management capacity in accordance with the Law on Public Debt Management in 2017, focusing on forming a professional and modern public debt management agency in accordance with international practices, directed at Resolution No. 07-NQ/TW of the Politburo; improve the qualifications of public servants in debt management.
c) The State Bank of Vietnam:
- Strictly control the implementation of the limit of self-borrowing and self-pay foreign debt of enterprises that are not guaranteed or guaranteed by the Government within the approved limit.
- Coordinate with the Ministry of Finance to conduct research and progress to innovate methods and tools for the management and statistics of the country's external debt in the direction of separating the management of external debt of the public sector (Government debt, government-guaranteed debt) and self-borrowing and self-repaying debt of enterprises and credit institutions, in line with international practices and development requirements of the economy.
- Coordinate with the Ministry of Finance in mobilizing capital for the socio-economic recovery and development program, the national financial plan, and borrowing and repaying public debt every five years.
d) Bank for Social Policies:
- Fully fulfill the debt repayment obligation (principal, interest) of the Government-guaranteed bonds of 2022.
- Actively decide and take responsibility for the volume, structure and term of issuance of government-guaranteed bonds according to the assigned level to balance operating capital, in line with the disbursement schedule of policies for the Government. concessional loans as prescribed in Resolution No. 43/2022/QH15 and Resolution No. 11/NQ-CP dated January 30, 2022 of the Government, while improving credit quality and using capital in accordance with regulations under the law.
5. Funding for implementation of public debt management program 03 in 2022-2024 comes from:
a) Funds for the implementation of programs and tasks shall be arranged from the state budget, mobilized from foreign funding sources, and used from the on-lending fee and the deduction of guarantee fees in accordance with the Law on Public debt management 2017, Decree 91/2018/ND-CP on issuance and management of Government guarantees, Decree 94/2018/ND-CP on public debt management, Decision No. 05/2016/QD -TTg dated February 5, 2016 of the Prime Minister on the management and use of the on-lending fee and the deduction of guarantee fee at the Ministry of Finance for the period 2016-2020 and Decision No. 11/2021/QD-TTg dated March 17, 2021 of the Prime Minister on the extension of time to implement the specific financial mechanism of a number of state administrative agencies and units.
b) The Ministry of Finance shall assume the prime responsibility for, and coordinate with relevant units in, summarizing and balancing them into the annual state budget estimate for the implementation of the Program.

Source: Vitic/ thuvienphapluat.vn