93pct of Vietnam’s sovereign debts enjoy low interest rate

In its socio-economic report in September and the first nine months of this year, the Office of Vietnamese Government said that “the national debt indicators are in the safe threshold”.
Deputy Minister of finance, Nguyen Cong Nghiep at the regular cabinet press conference in September (September 26) stated that about 62% of the national debts currently are the government’s foreign debts and 38% remaining are private debts

Of which 93% of the government’s debts are ODA (official development assistance) debts and preferential loans with low interest rate with 74% ODA and 7% of commercial loans. Thus, Nghiep asserted that the government’s debts are mostly long term debts with low interest rate.

As of December 31, 2010, according to the government’s news on sovereign debts, Vietnam’s total sovereign debts as of December 31, 2010 were over $32.5 billion, accounting for 42% of GDP (gross domestic product).

According to the news, these national debts have mainly the fixed interest rate of 1-2.99% per annum.

Representative from Ministry of Finance also said that in the upcoming time, the country’s sovereign debts will be controlled at no higher than 50% of GDP.

Source: Vietbiz24.com

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial, Vietnam interest rates

Posted by VBN on Sep 28 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry