According to the bill that is currently under discussion before voting, the Ministry of Finance will sign documents for all foreign loans, and provincial People’s Committees will be able to develop borrowing plans and seek loan sources.

The bill before the assembly also states that People’s Committees will have to work with relevant agencies on any overseas loan negotiations.

The Prime Minister will approve any foreign loans, which will be taken out by the national government and then lent to the provincial authorities. Delegate Tran Van Kiet from Vinh Long Province said that not all localities were able to actively seek foreign loan sources.

If the country allowed localities to seek the loans then a database of international lenders should be established, Kiet said.

The proposed bill states that the government has the right to approve provinces’ long-term lending plans.

NA delegate Vu Viet Ngoan from Khanh Hoa Province, however, said the parliament should also approve long- and medium-term debt management plans, as well as annual borrowing and repayment plans.

“We should mobilize local capital before considering foreign loans,” Ngo Duc Manh from Binh Phuoc Province said, adding that foreign loans accounted for 32.75 percent of the country’s gross domestic product, while local ones made up only 8 percent.

Other matters discussed at the NA’s ongoing session Tuesday, included the pilot project to do away with People’s Councils at communal and district levels and voting procedures in selecting the communal People’s Committee.

Reported by Bao Van