Seminar talks risk management of foreign loans, government guarantees
Hanoi (VNA) – The Ministry of Finance (MoF) held a seminar with the International
Monetary Fund (IMF) on November 19 to discuss risk management of re-lending foreign loans and government guarantees.
The event was part of
the ministry’s mid-term integrated debt management reform framework, with
public debt and credit risk management being one of the five main pillars
playing an important role.
Since the Vietnamese
National Assembly adopted the Law on Public Debt Management 2017, the country's
legal documents on public debt management have been basically completed.
Director of
the MoF’s Debt Management and External Finance Truong Hung Long said
Vietnam has consistently followed the goal of fiscal strengthening with public debt
safety criteria under control, contributing to offsetting fiscal policy to
effectively 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 stalled
economic growth, higher interest rates and rising costs due to population
aging.
Meanwhile, the ministry and foreign sponsors gradually adjusted development
cooperation policies with Vietnam by shifting from the supply of official development
assistance (ODA) to loans with less preferential rates.
As the country will continue limiting the supply of government guarantees for
new loans, the ministry suggested restructuring debts reasonably.
Long stressed that enhancing capacity of debt management officers, especially in grasping
credit risk measures and applying quantitative model to offer advice in the
field is the top priority towards sustainably ensuring debts for the mid and
long-terms./.