At the event (Photo: VNA)
Hanoi (VNA) – The Ministry of Finance (MoF) held a seminar with the InternationalMonetary Fund (IMF) on November 19 to discuss risk management of re-lending foreign loans and government guarantees.
The event was part ofthe ministry’s mid-term integrated debt management reform framework, withpublic debt and credit risk management being one of the five main pillarsplaying an important role.
Since the VietnameseNational Assembly adopted the Law on Public Debt Management 2017, the country'slegal documents on public debt management have been basically completed.
Director ofthe MoF’s Debt Management and External Finance Truong Hung Long saidVietnam has consistently followed the goal of fiscal strengthening with public debtsafety criteria under control, contributing to offsetting fiscal policy toeffectively cope with macro shocks like Vietnam has been facing this year.
In the near future,Vietnam is expected to face rising macro-economic risks such as stalledeconomic growth, higher interest rates and rising costs due to populationaging.
Meanwhile, the ministry and foreign sponsors gradually adjusted developmentcooperation policies with Vietnam by shifting from the supply of official developmentassistance (ODA) to loans with less preferential rates.
As the country will continue limiting the supply of government guarantees fornew loans, the ministry suggested restructuring debts reasonably.
Long stressed that enhancing capacity of debt management officers, especially in graspingcredit risk measures and applying quantitative model to offer advice in thefield is the top priority towards sustainably ensuring debts for the mid andlong-terms./.
