Viet Nam plans to borrow US$1.7 billion in official development aid and other foreign soft loans while paying off $930 million in foreign debt this year, the Prime Minister announced on Thursday.

Prime Minister Nguyen Tan Dung (photo) also revealed middle and long-term foreign commercial debt targets of $4.7 billion, including $1.1 billion for the Government.

The maximum Government guaranteed foreign loans that local businesses and credit organisations can borrow are not more than $1.3 billion, while foreign loans without Government guarantees should be around $600 million.

The Prime Minister asked the State Bank of Viet Nam, in co-ordination with relevant authorities, to produce an assessment report on the current foreign loan situation for businesses – particularly middle and long-term foreign direct investment loans and short term loans for credit organisations.

The report must be submitted to the Prime Minister in the second quarter of this year, according to the decision.

VietNamNet/VNS