VN to pay over $12 billion debts, borrow $20 billion in 2016
Under the plan on debt payment and loans in 2016, approved recently by Prime Minister Nguyen Xuan Phuc, the Government plans to borrow $20 billion to pay debts and cover its expenses, including $15 billion from the Social Insurance Fund and the State Capital Investment Corporation (SCIC).
Under this plan, VND273,300 billion ($12.2 billion) will be used to pay debt this year, including VND24,000 billion of foreign debt.
Also this year, the government plans to borrow VND452,000 billion, equivalent to more than $20 billion. Of which, loans to offset the budget deficit are VND254,000 billion; Government bond issuance for investment of VND60,000 billion; ODA loans and soft loans to reloan VND43,000 billion.
Regarding the sources, domestic loans through the issuance of government bonds and loans from SCIS are up to VND336.000 billion ($ 15 billion).
Foreign loans from ODA, preferential loans are estimated at VND99,000 billion, of which VND43,000 billion will be reloaned and VND56,000 billion to cover the budget deficit.
The government also assigned the Ministry of Finance to monitor domestic and international markets to mobilize VND17,000 billion through other channels such as issuance of foreign currency bonds in the country and international bonds.
According to the Ministry of Finance, the state budget balance in January-May 2016 is estimated at VND396,200 billion, up 4.5% from the same period in 2015.
Of which, domestic revenue is estimated at VND321,200 billion, up 11.9% over the same period in 2015.
State budget spending in this period reached VND466,300 billion, an increase of 4.7% over the same period of 2015. Thus, in the first 5 months of the year, the budget deficit was over VNd70,000 billion.
US$1 = VND22,300
Nam Nguyen, VNN