The Ministry of Finance has reported on loan and public debt repayment in the first six months.

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Government repays VND209 trillion

Domestic loans via issuing Government bonds raised more than VND 141 trillion in the first six months, 40.4% of the target assigned by the Ministry.

100% of Government bonds were issued via auctions and five-year term or more. The issued volume met the central budget’s principal repayment.

Regarding ODA loans and foreign concessional loans, in the first six months of 2021, the Government signed two agreements, totalling US$98.6 million. The disbursed capital from ODA loans and foreign concessional loans from January to June reached US$ 690 million of which about US$451 million were allocated, about US$239 million used for on-lending.

Regarding debt repayment liability, the Government's debt repayment hit about VND 209 billion, of which domestic debt repayment was about VND180 trillion billion, and foreign debt repayment was VND28 trillion. Government debts were paid in full and on time.

Regarding the Government credit guarantee limit, the Ministry of Finance reported that granting and management of Government guarantees to foreign loan projects in the first half of the year continued to closely follow the guidelines of the Government "minimise government guarantees for new loans". The Ministry of Finance has submitted to the Government for approval of the 2021 Government guarantee limit.

So far this year, no new guarantees for foreign loan projects were granted. In the first six months of 2021, withdrawal capital was zero, principal payment VND 8,312 billion, and interest and fee payment was VND1,501 billion. Outstanding debt was estimated to top VND192 trillion VND.

In the first six months of the year, no new guarantees were granted for domestic loan projects. In the same period, projects guaranteed for domestic loans did not withdraw capital, principal repayment was VND510 billion, and interest payment was VND477 billion . Government-guaranteed loans was estimated at more than VND23 trillion.

As for the guarantee for two policy banks to issue bonds, in the first six months, the Vietnam Bank for Social Policies did not issue Government-guaranteed bonds; completed a principal payment of VND3,500 billion and interest payment of VND725 billion. The Government guaranteed bond outstanding was about VND35,831 billion.

The Vietnam Development Bank did not issue Government-guaranteed bonds, paid principal VND11,095 billion, paid interest VND2,074 billion; and its Government-guaranteed bond outstanding as of June 30 was more than VND 91 trillion

In the first six months of 2021, no local Government bonds were issued, principal repayment was VND 155 billion and interest payment was VND31 billion. Outstanding debt of local Government bonds as of June 20was about VND12,715 billion.

For the Government's on-lending to local governments, the withdrawn amount in the first six months was about US$128 million.

The Ministry of Finance reported, in the first six months of the year, the ministry completed the target of public debt management in accordance with the resolution of the National Assembly with low costs associated with a reasonable level of risk for development investment for socio-economic development, promoting the development of capital market and domestic bond market.

Debt repayment was conducted in full and on time as Government commitments. The ministry adjusted the structure and volume of loans in line with capital demand and market conditions.