If the bill is passed into law, the Ministry of Finance will sign documents for all foreign loans, with provincial People’s Committees only able to develop borrowing plans and seek loan sources.

The bill also states that People’s Committees will have to work with relevant agencies on any overseas loan negotiations. The Prime Minister will also have to approve any foreign loans, which will be taken out by the national government and then lent to the provincial authority.

Hien said borrowing foreign capital is necessary for socioeconomic development but it should be done sensibly to ensure future generations are not overburdened with debt.

The National Assembly’s Finance and Budget Committee said the parliament should approve long-and medium-term debt management plans, as well as annual borrowing and repayment plans.

Under the proposed new law, debts guaranteed by the government and loans taken out by provincial governments will be considered part of the national government’s debt.

The National Assembly Standing Committee also proposed the parliament, at its fifth session next May, approve 12 bills, including housing, intellectual property and urban planning legislation.

The committee also recommended the National Assembly’s sixth session next October pass 13 bills.

Reported by Bao Van