Vietnam in talks to borrow $1 billion as budget deficit seen widening

HANOI (Reuters) – Vietnam plans to borrow $1 billion from foreign lenders this year, the Ministry of Finance said Friday, adding that the country’s budget deficit is seen widening this year due to the coronavirus outbreak.

“The Finance Ministry is negotiating with potential lenders (IMF, WB and ADB),” the ministry said in a statement posted on its website, referring to the International Monetary Fund, the World Bank and the Asian Development Bank. It did not give further details.

It said Vietnam’s budget deficit is expected to widen by 1.5-1.6 percentage point to 5%-5.1% of gross domestic product due to the impact of the coronavirus.

The country will lose 140-150 trillion dong ($5.94-$6.37 billion) in state budget revenue this year, if the virus pandemic is contained within the second quarter, it added.

($1 = 23,550 dong)

Source: Read Full Article