Review and complete regulations on conditions and methods of re-lending

Vice Chairman of the National Assembly Nguyen Duc Hai chaired the meeting.

Strengthening the initiative and self-responsibility of local authorities

The draft Law on amending and supplementing a number of articles of the Law on Public Debt Management was presented by Deputy Minister of Finance Tran Quoc Phuong. The draft Law amends and supplements 24/63 articles, of which 17/63 articles are amended and supplemented, some provisions in 5 articles are abolished and new provisions in 5 articles are added.

To continue implementing the policy of decentralization and delegation of power, associated with the arrangement and streamlining of the organizational apparatus, and improving administrative efficiency, Clauses 8, 11, 19, and 21, Article 1 of the draft Law stipulates the delegation of power to the Prime Minister and the Ministry of Finance in a number of tasks on debt management, enhancing the initiative and self-responsibility of local authorities in deciding and using the budget.

Deputy Minister of Finance Tran Quoc Phuong presented the Draft Law on amending and supplementing a number of articles of the Law on Public Debt Management.

The draft Law supplements the provisions that ministries, provincial People's Committees, municipal People's Committees, enterprises with 100% charter capital held by the State, and subsidiaries of enterprises with 100% charter capital held by the State must propose ODA loans and foreign preferential loans to the Ministry of Finance for evaluation and submission to the Prime Minister for approval as a basis for implementing investment procedures for programs and projects. Information on the Loan Proposal focuses on 4 contents of the expected foreign loan and the letter of interest from the sponsor (if any), reducing the amount of information that the competent authority needs to provide at this stage.

Some contents of amendments, completion and supplementation aim to complete the legal basis, create conditions for capital mobilization, to ensure harmonization of regulations with the Law on International Treaties, and remove obstacles in the negotiation stage. In addition, amend the Law in the direction of allocating all ODA loans and foreign preferential loans of the Government to localities receiving additional balance from the central budget and to the People's Committees of provinces of localities not receiving additional balance from the central budget, public service units and enterprises re-borrowing from ODA loans and foreign preferential loans...

Decentralization and delegation of power go hand in hand with increased transparency

The review report was presented by Chairman of the Economic and Financial Committee Phan Van Mai. Accordingly, the Standing Committee of the Economic and Financial Committee agreed on the necessity of amending and supplementing the Law on Public Debt Management to fully institutionalize the Party's policies and orientations, strengthen decentralization and delegation of power, and associate it with the 2-level local government organization model. At the same time, reduce and simplify procedures; improve the legal basis, create conditions for capital mobilization, and remove some difficulties and obstacles that arise in practice.

Chairman of the Economic and Financial Committee Phan Van Mai presented the Audit Report.

Regarding the proposal to amend and supplement 23/63 Articles of the current Law on Public Debt Management, the Standing Committee of the Economic and Financial Committee believes that the scope of the proposed amendment is quite wide. Therefore, it is recommended that the drafting agency review and focus on urgent issues and major problems to propose amendments and supplements; contents that are not really necessary and have not been thoroughly assessed for impact need to continue to be studied and proposed for comprehensive amendments.

The Standing Committee of the Economic and Financial Committee also basically agreed with the draft Law on decentralization of authority of the President, the Government and the Prime Minister on negotiating, signing, approving, ratifying and amending, supplementing and extending international treaties in the name of the State and in the name of the Government on ODA loans and foreign preferential loans; decentralizing to the Prime Minister the decision on the loan limit for re-lending and the annual Government guarantee limit associated with the approval of the Public Debt Loan and Repayment Plan, contributing to shortening the procedures for approving the loan limit for re-lending and the annual Government guarantee limit...

In addition, it is recommended that the Government continue to review to ensure that regulations on decentralization and delegation of power go hand in hand with increased objectivity, transparency and ensuring effective management of capital mobilization and use.

In his concluding remarks, Vice Chairman of the National Assembly Nguyen Duc Hai suggested that it is necessary to continue reviewing to ensure that the amendments and supplements to the law meet the set goals, especially mobilizing resources to realize the double-digit growth target for the next period and resolving difficulties and problems in the work of mobilizing, borrowing and repaying public debt.

Along with that, it is necessary to continue reviewing to promote decentralization and delegation of authority in public debt management. Research can assign the Ministry of Finance to approve loan proposals based on the annual debt plan approved by the Prime Minister. Carefully assess the impact on public debt safety, the appropriateness and reasonableness to allow localities to receive additional funds from the central budget balance to re-borrow and allow licensing of all ODA loans and foreign preferential loans of the Government.

The Vice Chairman of the National Assembly also requested to evaluate the effectiveness of the regulation that commercial banks re-lend to public service units but do not have to bear credit risks, consider adding this regulation to the law; review the regulations on appraisal of granting Government guarantees according to the principle of one task being assigned to only one agency to clarify responsibilities; complete the regulations on re-lending conditions, re-lending methods and regulations on the limit of Government guarantee subjects to ensure the effectiveness of capital mobilization on the basis of strict risk control...

The Vice Chairman of the National Assembly requested the Government to direct the drafting agency and relevant agencies to study and absorb the opinions of the National Assembly Standing Committee to complete the draft Law dossier; assign the Economic and Financial Committee to officially review it and submit it to the National Assembly for consideration and decision.

Source: https://daibieunhandan.vn/ra-soat-hoan-thien-cac-quy-dinh-ve-dieu-kien-phuong-thuc-cho-vay-lai-10390589.html