Chương II Nghị định 94/2018/NĐ-CP : Xây dựng và thực hiện chỉ tiêu an toàn nợ công

Chapter II

DEVELOPMENT AND CONTROL OF INDICATORS OF PUBLIC DEBT SAFETY

Article 4. Indicators of public debt safety

1. Indicators of public debt safety prescribed in clause 1 in Article 21 of the Law on Public Debt Management include:

a) Public debt-to-GDP ratio;

b) Government debt-to-GDP ratio;

c) Ratio of debt service of the Government (excluding on-lent loans) to total state budget revenues;

d) External debt-to-GDP ratio;

dd) External debt service-to-export turnover ratio

2. Public debt ceiling and public debt warning threshold:

a) Public debt ceiling means the maximum percentage of indicators of public debt safety prescribed in clause 1 in this Article;

b) Public debt warning threshold (hereinafter referred to as “threshold”) means the limited public debt safety indicators nearly reaching the public debt ceiling that requires solutions for ensuring these indicators not exceeding the debt limit ratified by National Assembly.

Article 5. Bases for developing indicators of public debt safety

1. Orientation for 5-year socio-economic development plans

2. Control of indicators of public debt safety for previous 5-year period

3. Growth rate and internal saving ratio of the economics

4. Balance of state budget revenues, expenditures and deficit, balance between the borrowing requirement and repayment capacity; balance of foreign currency, borrowing requirement and structure of investment capital of the society and other macroeconomic balances.

5. Capacity for raising domestic and foreign loans

6. Experiences and international practice in developing indicators of public debt safety

Article 6. Developing indicators of public debt safety

1. The Ministry of Finance shall preside over and cooperate with relevant agencies in determining the public debt ceiling and threshold and send them to the Government which is then submitted to the National Assembly and ratified in national 5-year financial plans.

2. The Ministry of Finance shall preside over and cooperate with the State Bank of Vietnam (hereinafter referred to as “the State Bank”) in working out external debt-to-GDP ratio and external debt service-to-export turnover ratio.

Article 7. Control of indicators of public debt safety

1. The Ministry of Finance shall preside over and cooperate with the State Bank and relevant agencies in making a consolidated report on evaluation of the control of indicators of public debt safety within the annual borrowing and repayment plans and send it to the Government which is then included in annual report on performance tasks associated to finance and state budget and submitted to National Assembly and the Standing Committee of National Assembly.

2. When indicators of public debt safety reach the threshold, the Ministry of Finance shall submit solutions for keeping those indicators under the public debt ceiling ratified by the National Assembly to the Government for adoption or submit these solutions to the National Assembly and Standing Committee of National Assembly, including:

a) Decreasing amounts of ODA loans to be on-lent and Government’s concessional loans;

b) Lowering the limit on sovereign guarantee;

c) Decreasing loan amounts of provinces;

d) Decreasing state budget deficit for the purpose of reducing Government's debts

3. In case indicators of public debt safety still exceed the public debt ceiling decided by the National Assembly although solutions prescribed in clause 2 in this Article have been adopted, the Ministry of Finance shall preside over and cooperate with relevant agencies in sending solutions and roadmaps for adjusting 5-year public borrowing and repayment plans or adjusting the public debt ceiling in accordance with provisions of the Law on Public Debt Management to the Government which are then submitted to the National Assembly for ratification.