The latest public debt management bill complements and modifies regulations to implement the decentralization and delegation of authority on the process of approval of debt plans and debt payment; External indebtedness and debt payment activities, and indebtedness of local authorities to ensure coherence with the State Budget Law and the Public Investment Law amended.
At the same time, the bill adjusts the rules on the mobilization and use of external government loans to expedite the execution of projects that use external loans, expand the incentives and conditions to access them.
It should be noted that the bill gives greater authority to the prime minister and the Ministry of Finance in public debt management; Add provisions on the authority of the President and the Government to negotiate, sign and modify international treaties on loans of AOD and preferential loans. The Ministry of Finance has the responsibility of proactively negotiating loan agreements, and the prime minister decides on the modifications and supplements that increase the payment obligations of the external debt of the government.
The bill also cuts many procedures, such as the approval of loan limits, the evaluation of loans to localities, the addition of a mechanism to manage AOD loans, the issuance of international bonds and the exemption of income tax for the interests of international government bonds and loans of foreign lenders.
According to the Deputy Minister of Justice, Nguyen Thanh Tu, it is necessary to modify and complement the Public Debt Management Law, focusing on urgent issues that greatly affect socioeconomic development, especially growth and macroeconomic stability.
During the evaluation process, the Ministry of Justice requested that a series of issues related to decentralization and the delegation of powers between the President and the Government must be consistent with the Constitution, also guaranteeing the coherence and synchronization with other laws, such as the Law of Credit Institutions, the State Budget Law, the Tax Law, etc., and the synchronization with the international commitments that Vietnam has signed.
In addition, if the amendment or complement is related to the decentralization and delegation of powers between the President and the Government, it is necessary to clearly explain this issue to guarantee the fulfillment of the Constitution.
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