HCMC asks for resolution over inconsistence on loans for HCMC

The People’s Committee of Ho Chi Minh City yesterday suggested the National Assembly Committee for Budget and Finance to hold a discussion about the city’s public debt and borrowing funds in 2019, pursuant to regulations of the Resolution No. 54/2017/QH14 of the National Assembly.

(Illustrative photo:SGGP)

(Illustrative photo:SGGP)

According to the Ho Chi Minh City People’s Committee, the Resolution No. 54/2017/QH14 of the National Assembly about piloting special mechanism and policy for Ho Chi Minh City development rules that the city can raise funds from issuing municipal bonds, from domestic and foreign financial organizations with total loan balance if the loan is not more than 90 percent of the decentralized revenue collection from the city budget.

However, the Decision No. 2231/ QD-BTC of the Ministry of Finance about allocation of the State budget revenue and expenditure estimates in 2019 regulates that the highest assigned loan for Ho Chi Minh City reaches only VND 5,493 billion (nearly US$ 237 million) from foreign capitals of the Government, excluding internal funds .

Meanwhile, demand of re-borrowing the Government's foreign loans for the city’s projects is estimated over VND 13,000 billion (US$ 560 million). Because the loan stipulation does not exceed the assigned budget estimate, the city may face difficulties in allocating loan limits for every specific project.

In case of the actual disbursement process of projects is higher than the assigned figure, the city will not have a limit to disburse the loans, affecting to the implementation progress of the projects. 

BY MINH HUY- Translated by Huyen Huong

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