Vietnam to raise $2.1 billion via bonds in 2005
Vietnam plans to raise 33.25 trillion dong ($2.11 billion) through government bond issues in 2005, 44 percent more than this year, to cover a widening budget deficit, a finance ministry report said Monday.
The report forecast the budget deficit in 2005 would widen more than 10 percent to 12.8 trillion dong ($814 million) from an estimated gap of 11.6 trillion dong this year, due to a three-fold increase in state employees' salaries.
Of the total bond issue next year, 23.25 trillion dong would be used to service interests and to repay matured bonds.
The report said Vietnam would have to borrow 7.5 trillion dong ($480 million), with 4.7 trillion for foreign loan payment and 2.8 trillion to cover the deficit next year.
The government had instituted significant salary increases this year in a bid to stamp out corruption among state officials. It allocated an extra 7 trillion dong ($440 million) toward this end for 2004 and 20.5 trillion dong for 2005.
The average salary for government employees now stands at around $50 to $70 per month, from about $18 a month previously ($1=15,734 dong).
Source: Reuters.
Story from Thanh Nien News
Published: 06 December, 2004, 16:56:28 (GMT+7)
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