Vietnam Spends VND236 trillion to Pay Government Debt 9M/2019, Moody Considers to Downgrade the Country Credit Rating

The Government has paid an aggregate VND236.9 trillion debts in the first 9 months of the year, of which domestic debt is about VND195.7 trillion and foreign debt is about VND41.2 trillion.

The Government has paid an aggregate VND236.9 trillion debts in the first 9 months of the year, of which domestic debt is about VND195.7 trillion and foreign debt is about VND41.2 trillion. Of which, the Government's debt repayment in September 2019 was VND19.6 trillion including domestic debt repayment of VND11.9 trillion and foreign debt repayment of VND 7.7 trillion.

In the same time, Vietnam also has signed 5 foreign loan agreements of the Government with a total value of about USD463 million including 4 agreements with ADB and 1 agreement with OFID.

In September 2019, disbursement of ODA loans and foreign concessional loans was about USD89 million, making the total number in the 9M/2019 of USD1,416 million USD, equivalent to VND32,737 billion, accounting for about 26.2% of the plan approved by the Prime Minister.

In the related news, the credit rating agency Moody's Investors Service (Moody's) has announced consideration of downgrading Vietnam’s national credit rating for domestic and foreign currency loans which is currently at Ba3 on reasoning that limitations of coordination among government agencies lead to the delayed payment of government debt obligations.

However, shortly thereafter, the Ministry of Finance issued a statement saying that Moody's putting Vietnam under consideration to downgrade based on a single incident is inappropriate, so it is suggested that Moody's soon have a full view and assessment of the above issue.

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