Illustrative Image (Source: VNA)

Hanoi (VNA) – Prime Minister Nguyen Xuan Phuc has signed a decision on the Government’s plans to borrow and pay loans as well as limits of loans in 2018.

Under Decision 437/QD-TTg, the PM approved the plan of borrowing 384 trillion VND (16.89 billion USD), with 275.97 trillion VND in domestic loans and 108.03 trillion VND in foreign loans.

Of the total, 341.77 trillion VND (15.03 billion USD) will be used to balance the State budget, 195 trillion VND (8.58 billion USD) for offsetting budget overspending, 146.77 trillion VND (6.45 billion USD) for repaying principal, and 42.23 trillion VND (1.85 billion USD) for relending.

Meanwhile, the Government will pay 256.769 trillion VND (11.29 billion USD) worth of debts, along with 18.56 trillion VND paid for re-borrowing projects.

The PM also approved limits of loans guaranteed by the Government in 2018. Accordingly, domestic bonds issued by the Vietnam Development Bank will not be higher than 24.43 trillion VND (1.07 billion USD), and that of the Vietnam Bank for Social Policies will be 9.67 trillion VND (425.48 million USD) at maximum.

The limit of Government’s guaranteed loans for projects is 2 trillion VND (88 million USD), while foreign commercial loans of enterprises with Government’s guarantees is 700 million USD. The maximum commercial loans of enterprises and credit organisations will be 5 billion USD.

At the same time, loan limit of local governments will be 21.514 trillion VND (946.44 million USD).

The Ministry of Finance was assigned to implement the borrowing and debt payment plans.-VNA