France Channels Funds to HCMC

The French Development Agency (AFD) will lend 30 million euro to the Ho Chi Minh City Urban Development Investment Fund (HIFU) to finance educational, health and environmental projects and build housing for low income earners in the city.

Representatives of the Finance Ministry and HIFU sign a re-lending contract at the HCMC People’s Committee witnessed by French Consul General Nicolas Warnery (black suit) and committee vice chairwoman Nguyen Thi Hong

The loan via Viet Nam’s Finance Ministry will have a 20-year term including a grace period of seven years, and will in turn be lent out to business enterprises without government guarantee.

On Friday the Finance Ministry and HIFU signed a re-lending contract at the HCMC People’s Committee witnessed by French Consul General Nicolas Warnery and committee vice chairwoman Nguyen Thi Hong.

Mr. Warnery said the loan was AFD’s first pilot project financing for a local investment fund in Viet Nam and hoped the money would be used effectively to improve the living standards of the city’s populace.

Ms. Hong asked HIFU to begin the projects as soon as possible, use the capital effectively, and repay the money on time.

Straight after singing the contract, HIFU signed contracts with Gia Dinh People’s Hospital for VND58 billion (US$3.6 million) to buy equipment and with the HCMC Technical Education University for VND44.2 billion (US$2.8 million) to pay for construction of a campus building.

In addition, AFD has provided a non-refundable aid of 50,000 euro for HIFU to establish an anti-money laundering division of international standard and 30,000 euro to prepare for a 1.5-million technical assistance project to enhance the management capability of HIFU and of projects financed with AFD credit.

Source: HCMC web – Translated by Yen Chuong

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