Govt pushes for new ODA policy

13-Feb-2020 Intellasia | The SaigonTimes | 6:02 AM Print This Post

Deputy prime minister and Foreign minister Pham Binh Minh has urged the Ministry of Planning and Investment to quickly complete a draft decree on the management and use of official development assistance (ODA) and preferential loans and submit it to the government before February 20.

At a meeting on February 10, Minh, who also heads the National Steering Committee for ODA and Preferential Loans, said that the draft decree should ensure consistency with regulations in the 2019 Law on Public Investment, the 2017 Law on Public Debt Management, the 2015 Law on State Budget and the 2016 Law on International Treaties, the government news website reported.

Under the prevailing regulations, foreign donors’ ODA and preferential loans are public investments, so the use of these loans must comply with the 2019 Law on Public Investment.

However, the draft decree providing guidance for the deployment of the 2019 Law on Public Investment is only applicable to programmes and projects using public investment, not those using ODA and preferential loans from foreign donors.

In addition, the new decree is expected to remove obstacles in the deployment of Decrees 16/2016/ND-CP and 132/2018/ND-CP on ODA and preferential loan management and use.

Further, the new decree will simplify administrative procedures to receive ODA grants.

As Vietnam has graduated from the International Development Association, the World Bank’s fund for low-income countries, preferential loans for the country have become more limited, while the interest rates have risen.

Therefore, Minh expected new regulations on using ODA to create the most favourable conditions for receiving and using these funds.

In the past, the government has issued a number of regulations to increase the effectiveness of foreign loan attraction and use, including a decree on the re-lending of the government’s foreign loans to local governments, and a prime ministerial decision on orientations for the attraction, management and use of ODA and preferential loans from foreign donors in the 2018-2020 period with a vision for the 2021-2025 period.

The government has also transferred capital from projects with slow disbursement to those in need of capital to accelerate their progress and tighten control over outstanding loans and has not used ODA loans for regular expenses.

https://english.thesaigontimes.vn/74649/govt-pushes-for-new-oda-policy.html

 


Category: Economy, Vietnam

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