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PM denies need to borrow IMF money

Update: September, 14/2012 - 11:20

 

Prime Minister Nguyen Tan Dung.—File Photo
HA NOI (VNS)— Prime Minister Nguyen Tan Dung has affirmed that the Vietnamese Government has no need to ask for loans from the International Monetary Fund (IMF) or the ASEAN+3 to resolve internal economic issues.

The positive macro economic situation, high market confidence, a steady foreign currency reserve and Viet Nam's payment balance mean that a loan from the IMF is uneccessary.

The Prime Minister was answering a Vietnam News Agency query regarding comments made by Indonesian President Susilo Bambang Yudhoyono on the sidelines of the 20th APEC Summit held recently in Vladivostok, Russia.

President Yodhoyono was quoted as saying that "Indonesia and other fellow ASEAN members will be ready to help Viet Nam through the crisis without the country requiring a bailout from the International Monetary Fund."

Dung said under the agreement of the Chiang Mai Initiative Multilateralisation, of which Viet Nam is actively involved, all member countries would have the right to approach for this loan when they need urgent assistance to address a short-term payment and foreign currency liquidity. This would help stabilise the macro economy and monetary market.

He added that since early 2012, the Vietnamese macro economy had seen positive changes. The eight-month period inflation rate was kept at 2.86 per cent and the annual rate was expected to be about 6 per cent.

The current account balance surplus exceeded US$6 billion, while the overall balance of surplus payments was about $8 billion, Dung said, adding that the state foreign currency reserves doubled at the beginning of the year together with a stable foreign exchange market and rate.

In addition, the country's exports increased by nearly 20 per cent while trade deficit accounted for nearly 1 per cent of the total export value. The GDP growth rate of the following quarter was higher than the previous one and was estimated to reach 5.5 per cent for the whole year.

Restructuring the economy, and the banking sector in particular, reached preliminarily positive results, the government leader said.

He affirmed that these achievements and the government's orientation of macro economic policy had been highly valued by the market and international community.

The Vietnamese government continued to maintain the close relationship, within the co-operation framework with the IMF and the ASEAN+3, including the regular supervision of macro economic activities, the PM added. — VNS

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