USD appreciates, Government's debt repayment obligation under control

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The Ministry of Finance has announced the appreciation of the USD will affect import and export and the exchange rate management of Vietnam to ensure the major balances of the economy, and the public debt and debt repayment of the country.

As of December 31, 2021, the Government's outstanding debt was estimated at VND3,283 trillion.

According to the selling rate of the State Bank of Vietnam, from the beginning of the year, one USD increased by 1.1% year-on-year to VND23,400, increasing the Government’s outstanding debt by about VND5 trillion compared with the end of 2021.

One EUR decreased by 9.5% compared with the previous year to VND24,385, reducing the Government’s outstanding debt by about VND17 trillion compared with the end of 2021.

JPY declined by 13% to VND180 compared with the beginning of 2022, reducing the Government’s outstanding debt by about VND45 trillion compared with 2021.

Regarding the impact of exchange rate fluctuations on public debt and debt repayment, the Government debt balance is estimated to reduce by about VND57 trillion.

In addition, at present, the internal loans of the Government account for 90% and external loans only account for about 10% of the total annual value. The internal loans tend to surge, accounting for major rate, and the external debts gradually decreases. This helps to reduce exchange rate risks, ensuring public debt safety and national financial security.

The Ministry of Finance said that the public debt and the Government's debt repayment are not affected by the appreciation of the USD. The Government's outstanding loans and debt repayment is still under control.