Vietnam approves plan on public and foreign debts

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Prime Minister Nguyen Tan Dung approved a strategy to repay public and foreign debts through 2020 which stressed the importance of domestic and foreign capital resources.

According to the strategy, loan mobilization and debt repayment must remain within the designated safety criteria for for all debts to ensure national financial security, the government website reported on July 27.

Vietnam will seek to bring budget overspending to under 4.5 percent of the GDP by 2015. according to the strategy.

That ceiling will drop to 4 percent from 2016-2020.

Vietnam also plans to issue Government bonds worth VND255 trillion between 2011-2015 and VND500 trillion between 2016-2020 to fund development projects.

Public debts (which include debts guaranteed by the Government as well as national, municipal and provincial debts) will be kept under 65 percent of the GDP and Foreign debt will not be permitted to exceed 50 percent of the GDP

The value of annual foreign debt payment will be kept equal to 25 percent of the country's total export value of goods and services.

The strategy set a target to cut public debt to 60 percent by 2030, in which Government debt accounts for less than 50 percent of the GDP and foreign debt accounts for less than 45 percent of the GDP.

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