Vietnam PM says no need for loans from IMF or other nations

TN News

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There is no need for Vietnam to seek loans from the International Monetary Fund or neighboring countries since its economy has improved, says Prime Minister Nguyen Tan Dung.

The PM told the Vietnam News Agency Thursday that inflation was controlled at 2.86 percent in the first eight months and there was an US$8 billion balance of payments surplus.

The country's foreign exchange reserves have also doubled since the beginning of the year, he said.

"With the current positive macroeconomic conditions, balance of payment, foreign exchange reserves and market confidence, the Vietnamese government confirms that there is no need to borrow from the IMF or ASEAN+3 to deal with local economic issues," Dung said.

ASEAN+3 refers to the regional bloc of 10 Southeast Asian economies and China, Japan and South Korea.

Dung's comments came after Indonesian President Susilo Bambang Yudhoyono said in a press conference last week that his country will offer support to Vietnam.

"Indonesia and other fellow ASEAN members will be ready to help Vietnam through the crisis without the country having to seek a bailout from the International Monetary Fund," the Jakarta Post cited Yudhoyono as saying.

Bloomberg News published an article titled "Vietnam Risks Biggest East Asia IMF Rescue Since 1990s" on Sep 6, in which it cited a report by the National Assembly's Economic Committee as suggesting Vietnam should consider seeking IMF aid to restructure its banks.


The State Bank of Vietnam then said it has no intention of borrowing from the IMF to deal with the country's bad debt problem, rejecting any report suggesting otherwise.

The country's macroeconomic situation is stable and there is no reason for it to seek loans from the IMF, Deputy Governor Le Minh Hung said.

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