Checking a machine at the Thai Binh 1 thermal power plant, a project built with Japanese ODA (Photo: VNA) Hanoi (VNA) – TheStanding Committee of the National Assembly (NA) has recently issued a resolutionon promoting law enforcement on the management and use of foreign loans.
The issuance of Resolution582/NQ-UBTVQH 14 is based on a report of the NA Standing Committee’s inspectionteam on the management and use of foreign loans in 2011-2016.
The resolution said the legal systemhas been improved in line with policies of the Party and State and basicallymeets the requirements in the use and management of foreign loans.
Over the years, the use of this capitalsource has been effective with prompt disbursement. Meanwhile, inspection andauditing of the use of foreign loans have been strengthened, raising theefficiency of projects funded by foreign loans.
The NA Standing Committee asked theGovernment to review the legal system and the implementation of regulations onforeign loans, while continuing to perfect regulations on the mobilisation,management and use of official development assistance and foreign preferential loans.
The Government was also asked to studyrevisions to Law on Public Investment to make it align with the Constitution andrelated laws, and submit the revised bill to the NA.
In addition, the Government wastasked with devising a strategy for foreign loan mobilisation, in line with thecountry’s socio-economic development strategy and step by step adjusting theratio of foreign debts in public debts.
The resolution said foreign loansshould be mainly used for purposes and tasks decided by the NA and majorprojects in fields of importance such as climate change adaption, clean energy,transport and irrigation.
It required the Government to adhereto the cap on investment from State budget at under 2,000 trillion VND (85.32 billionUSD) in the 2016-2020 and safety limits of public debt as set by the NA,particularly the limit regarding the Government’s foreign debt.-VNA
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