The Ministry of Finance (MOF) recently revealed a draft law on public debt management, which is expected to change the public debt management method in a stricter and more efficient manner, and enhance borrowers’ responsibilities.
The draft law keeps unchanged the governing scope of the 2009 law, covering governmental debts, government-guaranteed debts and debts of local administrations. It adds a provision that public debts do not include debts of state enterprises, public non-business units and state economic groups as well as debts of the State Bank of Vietnam (SBV) for implementing monetary policies.
The draft law on public debt management is expected to change the public debt management method in a stricter and more eficient manner__Photo: Internet
Under the draft, the State would act as the focal point for the uniform and comprehensive management of public debts.
Meanwhile, the Ministry of Planning and Investment would be in charge of negotiating and signing framework agreements, mobilizing and managing ODA and preferential loans. The SBV would negotiate and conclude ODA agreements with international financial institutions such as the World Bank, the Asian Development Bank, and the Asian Infrastructure Investment Bank) while the MOF would negotiate specific loan agreements except those assigned by the SBV.
The draft also assigns more tasks to the National Assembly Standing Committee, President, Ministry of Justice and State Audit Office, and changes the competence and tasks of some other related agencies, organizations and individuals to conform with the 2013 Constitution and the current laws.
Other contents of the draft law include debt safety norms and strategies, public debt management including programs and plans on controlling public debts, risk management, public debt supervision, management of government guarantee, management of debts of local administrations, accounting, auditing, evaluation and announcement of information on public debts and rights and tasks of agencies, organizations and individuals involved in the public debt management and use.
At a recent workshop to discuss on the draft law which was jointly held by the MOF, National Assembly’s Finance-Budget Committee and Asian Development Bank, most experts agreed with amendments in the draft law, in the context that relevant laws including the Law on State Budget, the Law on Public Investment, the Law on Treaties, have been revised.
However, some shared other ideas. Jean-Luc Steylaers, representative of the International Monetary Fund (IMF) in Vietnam proposed unifying the debt management function in the sole agency, instead of three separate agencies as proposed in the draft law.
Public debt management should be on the hand of the Ministry of Finance only because it is assigned to manage the Government’s loans and take the accountability to the Government, he added.- (VLLF)