Public debt remains within NA limit

Saturday, Nov 15, 2014 13:24

Japan contributed two-thirds of the investment for the construction of Nhat Tan Bridge. Viet Nam's Government is resolved to control new loans to ensure the debt ratio remains within the permitted level. — VNA/VNS Photo Huy Hung
HA NOI  (VNS) — Viet Nam's public debt remained within the limit approved by the National Assembly, Deputy Minister of Planning and Investment Dao Quang Thu said yesterday.

Thu said this during a workshop organised by the Ministry of Planning and Investment in Ha Noi which focused on defining the limit of public debt and safe public debt ceiling in the 2014-20 period.

Thu said the project aimed to clarify theoretical and practical issues on the issue, the determination of public debt, the limit and ceiling of public debt, and international experience in the field.

He said this could help perfect the country's public debt policy. According to a report released by the ministry's Policy and Development Academy, public debt and the risk of public debt crisis is a burning economic issue in many countries.

In Viet Nam, the issue has received special attention from the National Assembly, Government and researchers. However, there remain different opinions in determining the country's safe limits of public debt.

Viet Nam needed to take steps suitable for the country's political and economic institutions to prevent unwanted impacts of public debt on the national economy, said Dao Van Hung, director of the academy.

According to international practice, public debt safety criteria are based on key elements, such as the quality and risk of public debt, its impact on the macro economy, the efficiency of development investment capital use and the national trust index.

The Government recently noted that public debt had increased rapidly, from 51.7 per cent of the GDP in 2010 to 60.3 per cent at the end of this year.

However, the rate is still within the acceptable level in line with the National Assembly's resolution, the Government said.

The Government is resolved to keep strict control of public debt, particularly new loans, to ensure the debt ratio is within the permitted level. At the same time, it will tighten the monitoring of the use of capital from this source.

The Government will also take urgent measures to restructure public debt in by raising the ratio of long-term, low-interest borrowing.

The Government's resolution asked the Government Inspectorate to co-ordinate with other ministries, agencies and local governments to deal with complaints and petitions, particularly those involving a large number of people that had been delayed for a long time. — VNS

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