THE PRIME MINISTER
Decision No. 689/QD-TTg of May 4, 2013, approving the Program on management of medium-term debts during 2013-2015
THE PRIME MINISTER
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 17, 2009 Law on Public Debt Management;
Pursuant to the National Assembly’s Resolution No. 10/2011/QH13 of November 8, 2011, on the 2011-2015 five-year socio-economic development plan;
Pursuant to the Government’s Decree No. 79/2010/ND-CP of July 14, 2010, on public debt management operations;
Pursuant to the Prime Minister’s Decision No. 958/QD-TTg of July 27, 2012, approving the Strategy on public debts and national foreign debts during 2011-2020 and a vision toward 2030;
Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of the Minister of Finance,
DECIDES:
Article 1. To approve the Program on management of medium-term debts during 2013-2015 with the following principal contents:
1. Program’s name: Program on management of medium-term debts during 2013-2015.
2. Program-managing agency: Ministry of Finance.
3. Coordinating agencies: Other ministries, sectors and localities.
4. Program’s objectives
a/ Overall objectives
To mobilize, and manage the use of, loans with reasonable expenses and risk degree to meet state budget balancing and socio-economic development investment requirements in each period; to allocate and use loans properly and effectively so as to ensure debt payment capacity; to keep indicators of public debts, government debts and national foreign debts at safe levels to ensure national financial security and suitable to Vietnam’s conditions and international practices.
b/ Specific objectives during 2013-2015
- To borrow domestic and foreign loans to offset state budget overspending while gradually reducing state budget overspending (inclusive of government bonds) to below 4.5% of GDP by 2015, starting with 4.8% of GDP in 2013 and around 4.7% in 2014.
- To domestically issue government bonds for the program on investment in transport, irrigation, healthcare and education works during 2011-2015.
- To additionally mobilize loans for implementing the scheme to build a complete infrastructure system for national industrialization and modernization.
- Government guarantees, borrowing of foreign loans and payment of foreign debts by businesses and credit institutions must follow the principle of self-borrowing and self-repayment; local administrations’ loans and debts must be within the annual loan and debt limits approved by competent authorities.
- To intensify risk management and reschedule a number of public debts for reducing market, credit and liquidity risks to keep debt indicators within the safety limits and ensure national financial security.
- To reduce refinancing, liquidity, exchange- rate and currency risks, apply mechanisms for promoting the development of the government bond market and extend the borrowing term for an average of 4-6 years through the domestic issuance of government bonds during 2011-2015.
- To build, complete and develop the information system for monitoring, supervising and assessing public debts in a sustainable manner according to regulations.
