Prior to the above regulation, according to the Ministry of Finance, in the period 2011-2015, the granting of government guarantees helped speed up the progress of key and urgent projects, helping enterprises to arrange domestic and foreign capital conveniently.
During this period, the Ministry of Finance granted domestic and foreign loan guarantees to 35 programs and projects, with a total committed capital equivalent to 15.6 billion USD (including 14 billion USD from foreign capital). 12-year average repayment term. Total loan guaranteed to guarantee this stage is 3 times higher than 2007-2010 period.
Therefore, in 2015, the Ministry of Finance submitted to the National Assembly the plan to reduce the annual net withdrawal of projects, with foreign loans controlled at 1.5 billion USD, domestic capital of 5,000 billion VND. This solution is to reduce the impact of guaranteed loans on public debt.
Therefore, in the period of 2018-2020, the Ministry of Finance has operated to ensure that the guaranteed balance in 2020 does not exceed the outstanding balance in 2015. Specifically, in 2016, the Government only granted government guarantee for a project with a value of USD 170 million; In 2017, no new guarantees were granted, but some previously registered projects moved in and were arranged capital with a total value of about USD 2.8 billion (mainly power projects); in 2018, two more power projects with a value of more than USD 1.6 billion were granted; no guarantee in 2019.
Limiting the provision of government guarantees has helped the total outstanding loans of this group gradually decrease according to the set target.
Specifically, by the end of 2019, the total disbursement value of government guarantee projects is about 46,000 billion VND. In which, from foreign loans is 44,950 billion dong, domestic loan is 1,050 billion dong.
Total estimated principal repayment is 42,395 billion VND, of which 36,590 billion VND is paid from abroad, 5,805 billion VND is paid at home.
Estimated net withdrawal of foreign loan guarantee projects is USD 363 million (equivalent to VND 8,360 billion) within the maximum limit of USD 700 million; The net withdrawal of domestic loan guarantee projects is expected to be negative VND 4,750 billion (old repayment is higher than new loan) and continue to decrease.
Source: ndh.vn – Translated by fintel.vn