The Prime Minister has ratified the 2013-2015 medium-term debt management programme in a bid to ensure the safety of public debt, according to the Vietnam Government Portal (VGP).

Under the programme, by 2015, public debt will account for less than 65 percent of GDP, of which Government loans and foreign debts will be below 50 percent of GDP.

Overspending State budget will be reduced to below 4.5 percent of GDP by 2015 from the rates of 4.8 percent in 2013 and 4.7 percent in 2014.

Meanwhile, State foreign reserves will make up over 200 percent of short-term State loans.

To fulfill the goals, supplementary capital is proposed to be mobilised to balance the State budget and socio-economic development investment, with long-term loans at low fees and reasonable risks being favoured.

The programme continues to impose a ceiling rate for mobilising capital at local levels in line with the current regulations.

It prohibits spending short-term loans for medium and long-term projects and controls the granting and management of Government guarantee mechanisms, especially those applied on urgent and important projects.

Statistics show that as of April 15, Vietnam’s public debt was at a safe rate that was equal to 49.2 percent of the country’s GDP. With the total public debt of 72.5 billion USD and the population of over 89.7 people, every Vietnamese is burdened with 808 USD.

Earlier, the Government on July 16, 2010 issued a decree on public debt management which stipulates four instruments, including the long-term strategy of public debts, medium-term programme on debt management, the Government’s annual plans on loans and debt payment, and criteria for safety and supervision of public debts.

Accordingly, the medium-term programme on debt management will comprise goals, tasks and measures on mobilising, using, and paying public debts in a three-year period for the purpose of safety.-VNA