Professional Documents
Culture Documents
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The debt portfolio’s as of 31.12.08
• Domestic debt: 32.4% of total debt
Bullet bonds and T-bills
• External debt: 67.6% of total debt, in which
ODA loans 74,6% of external debt;
Non ODA 25.4% of external debt (loans and
bonds)
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Sustainable debt
• Vietnam is not eligible for HIPC
• Vietnam public debt and external debt are under
control
• The external debt is not the major risk
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Approaching to the commercial
borrowing
• Increasing portion of domestic bonds and bills
for financing budget deficit (2005: USD1.6
billions; 2008: 10 billions)
• Issue of international bonds: Nov.2005
• While the economy is growing, the access to
ODA funds will declining
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Framework for debt strategy
• Law on State Budget 01/2002 stipulates MOF
is responsible for formulation annual
government borrowing and payment plan
• Public debt law (2009) stipulated principles of
government borrowing: not to use short-time
funds to finance long-term investment;
external funds in commercial term must use
only for the financially viable projects
• Government degrees specified debt indicators
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Institutional framework
• Three agencies mainly responsible for
external debt management: MOF, MPI and
SBV, domestic debt: MOF only.
• The formulation of a debt strategy on
public and national debt is in the process
of being institutionalized
• Budget law 2002: MOF is responsible for
devising strategies and plans on borrowing and
repayment of domestic and foreign loans
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Improvement of debt management in
Vietnam (2009)
• Establishment of Debt Management
Office to manage external debt and public
debt
• Define overall indicators/ceiling for
public and external debt for formulation
of the public and national debt strategy
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Formulation debt strategy
• Public finance strategy for 2001-2010 set
indicators/ceiling: total public debt or national
debt/GDP less than 50%; annual government debt
payment/budget revenue less than 18%
• Domestic borrowing plan based on budged plan:
amount of new borrowing to finance budget deficit
(2009-2012, 3.5% of GDP per year, under budget
deficit 5% of GDP)
• External borrowing plan to finance budget
deficit:1.5% of GDP per year
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Formulation debt strategy (2)
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