NOT USE ODA FOR REGULAR EXPENDITURES
On June 29, 2019, the Prime Minister issues the Directive No. 18/CT-TTg on improving management and efficient use of ODA and foreign preferential loans in the new situation for development investment expenditures instead of regular expenditures.
The Prime Minister points out that major guidelines and policies on mobilization, management and use of ODA and foreign preferential loan capital, focusing on development investment expenditures instead of regular expenditures.
The ministries, branches and localities shall actively review and cut down them; calculate the remaining essential operational expenditures of the project arranged in regular funding from the state budget; not use loans for such expenditures.
Besides, the Directive also points out clearly that the negotiation and signing of loan treaties and agreements shall be consistent with the conditions and criteria of socio-economic efficiency and the ability of repayment, in which capital for conditional projects shall not be borrowed and detrimental regulations to Vietnam shall not be included as well as inefficient loans in comparison with domestic loans shall not be taken.
