Hanoi (VNA) – The Ministry of Finance (MoF) held a seminar with the International Monetary Fund (IMF) on November 19 to discuss risk management of re-lending foreign loans and government guarantees.
The event was part of the ministry’s mid-term integrated debt management reform framework, with public debt and credit risk management being one of the five main pillars playing an important role.
Since the Vietnamese National Assembly adopted the Law on Public Debt Management 2017, the country’s legal documents on public debt management have been basically completed.
Director of the MoF’s Debt Management and External Finance Truong Hung Long said Vietnam has consistently followed the goal of fiscal strengthening with public debt safety criteria under control, contributing to offsetting fiscal policy to effectively cope with macro shocks like Vietnam has been facing this year.
In the near future, Vietnam is expected to face rising macro-economic risks such as stalled economic growth, higher interest rates and rising costs due to population aging.
Meanwhile, the ministry and foreign sponsors gradually adjusted development cooperation policies with Vietnam by shifting from the supply of official development assistance (ODA) to loans with less preferential rates.
As the country will continue limiting the supply of government guarantees for new loans, the ministry suggested restructuring debts reasonably.
Long stressed that enhancing capacity of debt management officers, especially in grasping credit risk measures and applying quantitative model to offer advice in the field is the top priority towards sustainably ensuring debts for the mid and long-terms./.VNA
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