| THE MINISTRY OF FINANCE ------- No. 56/2011/TT-BTC | SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness --------------- Hanoi, April 29th 2011 |
CIRCULAR
PROVIDING GUIDANCE ON THE CALCULATION OF SUPERVISION CRITERIA AND THE SUPERVISION OF PUBLIC DEBTS AND NATIONAL FOREIGN DEBTS
Pursuant to the Law on Public Debt Management dated June 17, 2009;
Pursuant to the Government's Decree No. 118/2008/ND-CP dated November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance ;
Pursuant to the Government's Decree No. 79/2010/ND-CP dated July 14,2010 on public debt management;
The Ministry of Finance provides guidance on the calculation of supervision criteria and the supervision of public debts and national foreign debts as follows:
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Circular provide guidance on the calculation of criteria for supervising public debts and foreign debts prescribed in Article 7 of the Government's Decree No. 79/2010/ND-CP dated July 14th 2010 on public debt management (hereinafter referred to as the Decree No. 79/2010/ND-CP) and the supervision of public debs prescribed in Article 8 of the Decree No. 79/2010/ND-CP.
Article 2. Interpretation of terms
In this Circular the terms interrelated in Article 3 of the Law on Public debt management and Article 2 of the Decree No. 79/2010/ND-CP shall apply. The terms below are construed as follows:
1. Debt safety criteria mean a system of criteria that specify the maximum limits of debts decided by the National Assembly in each stage to ensure national debt security.
2. Debt supervision mean relevant state authorities supervising debts, analyzing and assessing level of risks to the debt portfolio, and making appropriate amendments to the policies on debt management via the system of debt supervision criteria
3. The system of debt supervision criteria includes indicators that reflect the public debts and national foreign debts and the solvency in comparison with macroeconomic criteria.
4. Total outstanding debt means the aggregated amount of disbursed loans that has not been repaid or not written off when the loan is taken as prescribed by Vietnam’s law.
5. Debt liability means the total amount payable, including the principal, interest, and fee over a certain period of time.
6. Overdue debt means a debt of which part or the whole principal and/or interest is overdue at a certain time.
7. Short-term debt means a debt that is due within 1 year.
8. Gross domestic product (GDP) means the new value of goods and services created by the whole economy over a certain period of time at actual prices, according to the data announced by General Statistics Office.
