The World Bank inked an agreement on Tuesday to provide Viet Nam with a concessional credit of US$100 million to further support the country’s efforts to reduce poverty and promote economic development.
The WB’s fifth credit for this purpose was signed in Ha Noi by State Bank of Viet Nam Governor Le Duc Thuy and World Bank Country Director for Viet Nam Klaus Rohland.
“The five credits have not only provided substantial resources for Viet Nam but also brought together the Government and an ever-widening group of donors in a dialog on the roadmap for reforms as Viet Nam moves ahead towards completion of the transition to a market economy,” Mr. Thuy said in a statement.
According to Mr. Thuy, the fifth one has been extended to include 18 sectors and nearly 50 policy actions with the involvement of more than 20 ministries and government agencies in comparison to only five and 18 respectively in the first credit.
Part of the credit, officially called Poverty Reduction Support Credit 5, will help transform the State Bank of Viet Nam into a modern central bank, strengthen the commercial orientation of State-owned commercial banks, and develop capital markets.
It recognizes measures to promote human development through upgrading the quality of education, improving the access of the poor to health services, and helping secure asset ownership through the implementation of the new Land Law.
The loan also supports actions to implement the Government’s public financial management reforms.
The WB said the Asian Development Bank, Australia, Canada, Denmark, the European Commission, Germany, Ireland, Japan, the Netherlands, Spain, and the UK have confirmed they will contribute resources to the credit through finances or lending. Switzerland, while not co-financing, is providing financial support for the coordination of the process.