Prime Minister urges better debt management

Viet Nam intends to borrow a maximum of US$25-27 billion from foreign countries between 2009 and 2012, an increase of 65 per cent; compared to the 2005-08 period.

The figure is according to the medium-term-foreign debt management programme for by the Prime Minister.

Foreign loans to the public and private sectors will reach, $18-19 billion and $7-8 billion, respectively.

Under the programme, the country's domestic capital will make up 65 per cent of the total social investment during the period while foreign loans will account for the remaining 35 per cent.

Foreign sources will come primarily from foreign direct investment (FDI), official development assistance (ODA) and FDI through securities markets", commercial loans, and overseas remittances.

To effectively use foreign loans, the Government will prioritise development projects, balance the state budget for economic restructuring, and work on socio-economic renovation and poverty alleviation nationwide.

The Capital will also be used to guarantee credit loans for enterprises that will serve key and prioritised projects.

The Prime Minister asked relevant agencies to strengthen risk management capability, strictly supervise foreign debts, perfect the legal framework and organisational structure for debt management, and speed up administrative reforms in this field.

vietnamnet, vietnamplus

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