Facing budget deficit, Vietnam seeks US$2.06-bln in foreign loans

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Vietnam is making arrangements to take out an additional US$2.06 billion in foreign loans after reporting a budget deficit for the first ten months of the year, thesaigontimes.vn reported.

In a statement released last November 20, the Finance Ministry said it had secured 25 loans totaling $2.37 billion since the start of the year and was currently negotiating with its foreign partners to get 22 more loans.

The money will be used to boost economic recovery and expansion.

As of the end of October, Vietnam had a budget deficit of nearly $6 billion, or 89 percent of the figure forecasted for 2012.

The ministry said collecting taxes has been "extremely difficult" and that it still needed to collect 24 percent more to reach its target for 2012.

From now until the end of the year, the finance ministry must collect 11.9 percent of the target each month while previously, it has only been collecting an average of 7.6 percent of the target over the first ten months, the news website quoted it as saying.

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