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PM Dung approves programme to cut public debt by 2015

Update: May, 09/2013 - 09:55

The Prime Minister approved a medium-term debt management programme for the 2013-15 period.— Illustrative image/VNS/Photo tienphong

HA NOI (VNS)— The Prime Minister approved a medium-term debt management programme for the 2013-15 period.

The programme aims to lower public debt to less than 65 per cent of GDP by 2015, of which Government loans and foreign debts cannot account for more than half.

Overspending in the State budget, which now stands at 4.8 per cent of GDP and is projected to decrease to 4.7 per cent next year, will be brought under 4.5 per cent.

There are also plans to issue Government bonds for investments in transport, water systems, healthcare and education.

The programme is projected to reduce risks facing liquidity and the exchange rate and help the Government bond market develop with the goal of prolonging the term of loans to four to six years.

The Government will supplement capital to balance the State budget and socio-economic development investment with long-term loans at low fees and reasonable risks.

The programme will continue to impose a ceiling rate for mobilising capital at the local level in line with current regulations.

It prohibits medium- and long-term projects from receiving short-term loans and controls the granting and management of Government guarantees, especially those given to urgent and important projects.

The Ministry of Finance will implement the programme along with relevant agencies and localities.

The need for such a programme was set out by a previous Government decree that also provided for a long-term strategy, annual plans on loan and debt payment and criteria for supervising public debt. — VNS



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