Risk warning on loans guaranteed by the Government
Illustration image. Source: Internet |
Ministry of Finance said that in two years 2016 and 2017, the Ministry Inspectorate has cooperated with the Department of Debt Management and External Finance and other units under the Ministry of Finance in order to participate in 10 delegations for supervising public debts in the enterprises borrowed foreign funds that are guaranteed by the Government, with loans ranging from 1,200 billion vnd to over 60,000 billion vnd.
Through the supervision, it aims to evaluate the implementation of the project, the financial status of the project, the situation of business management and production, the situation of withdrawal and repayment of foreign loans by the Government. The Ministry of Finance said that although it has been restructured financially, there is a risk on the of loan repayment which is guaranteed by the Government in these units because it still depends on the support from the parent company and could not repay debts by themselves from business production revenues of the project.
According to the company's financial report, although the fact that its subsidiary companies operation starts to gain profitable, it’s financial capacity and source of repayment is still difficult.
In addition, the investment rate of the factory is high (construction costs, facilities costs, and other costs), the technologies of some fields such as cement and small hydropower are mainly from China. Thus the products are difficult to compete in the market. As a consequence, the production in moderation, the production results of many companies are not high (even losses in recent years), it leads to losing the ability to repay.
According to the Ministry of Finance, the coordination of supervising projects guaranteed by the Government and re-lent by the Ministry Inspectorate, External Debt and Financial Management Department and related units are aimed to ensure that loans guaranteed by the Government are used efficiently and ensure the ability to pay debts.
Related News
Need to effectively use tools to prevent exchange rate risks in import and export field
10:32 | 02/04/2023 Import-Export
Enterprises’ worry is being in the debt group for banks
13:39 | 31/03/2023 Import-Export
Ministry of Finance summarizes the 10-year implementation of the Resolution of the 8th meeting of the 11th Central Committee
10:20 | 29/03/2023 Finance
Review, perfect regulations on decentralization of public property management
11:55 | 22/03/2023 Regulations
Latest News
Corporate bonds worth 1.1 billion USD issued in March
13:55 | 06/04/2023 Finance
Tax revenue is estimated at VND 426,922 billion in the first quarter
09:56 | 06/04/2023 Finance
Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline
14:47 | 04/04/2023 Finance
Central bank starts huge credit package for social housing projects
14:42 | 04/04/2023 Finance
More News
In Q1, State revenue estimated to rise by 1.3%
13:28 | 04/04/2023 Finance
Consider raising the level of penalties to ensure fairness and transparency in the stock market
13:27 | 04/04/2023 Finance
Central bank cuts policy interest rates to spur growth
17:43 | 02/04/2023 Finance
Ensure policies to attract investment when implementing global minimum tax
10:33 | 02/04/2023 Finance
SBV asks to issue revised decree on foreign ownership cap at Vietnamese banks
20:30 | 01/04/2023 Finance
Solutions to attract FDI when implementing the global minimum CIT
11:38 | 01/04/2023 Finance
Effective implementation of tax incentives as driving force for growth in trade turnover between Vietnam and Cuba
13:43 | 31/03/2023 Finance
Being many "hot" issues at the general meeting of shareholders of banks
09:24 | 30/03/2023 Finance
Bringing the policies on reducing land rent and water surface rent into life
15:41 | 29/03/2023 Finance
Your care
The system has not recorded your reading habits.
Please Login/Register so that the system can provide articles according to your reading needs.
Corporate bonds worth 1.1 billion USD issued in March
13:55 | 06/04/2023 Finance
Tax revenue is estimated at VND 426,922 billion in the first quarter
09:56 | 06/04/2023 Finance
Nearly 400 complaints about insurance distribution through banks on Ministry of Finance hotline
14:47 | 04/04/2023 Finance
Central bank starts huge credit package for social housing projects
14:42 | 04/04/2023 Finance
In Q1, State revenue estimated to rise by 1.3%
13:28 | 04/04/2023 Finance