Government to borrow $28B next year, exceed NA cap

By Anh Minh   October 8, 2023 | 07:58 pm PT
Government to borrow $28B next year, exceed NA cap
A bank branch in Ho Chi Minh City in November 2022. Photo by VnExpress/Thanh Tung
The Government plans to borrow VND676 trillion (US$28 billion) in 2024, VND55 trillion higher than approved by the National Assembly.

In a report on the public debt situation this year and borrowing and repayment plans for 2024 it made to the NA’s Standing Committee, it said the amount would be VND71.67 trillion higher than this year’s borrowings.

As usual, the main sources will be bond issuances, ODA and soft loans from foreign countries.

Repayment made next year will be VND395.9 trillion, VND84.3 trillion higher than in 2023, with 73% of it going towards repayment of principal and the rest for interest.

In 2024, no new government guarantees will be offered for domestic or foreign loans.

Government guarantees cover VND9.1 trillion worth of outstanding domestic loans and VND88.4 trillion worth of foreign loans.

The government estimates that next year provinces and cities will face a budget deficit of VND26.5 trillion and borrow VND30.6 trillion.

Next year public debts will amount to 39-40% of GDP.

The government said earlier public debts in 2023 would be within a safety threshold set by the National Assembly.

The economic growth target for 2024 will be 6-6.5%, equal to this year’s target.

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