The State Bank of Vietnam and the World Bank signed Friday a credit agreement for the country’s poverty reduction efforts with US$350 million to be pumped into the Government’s budget by the WB.
The credit line is for the eighth Poverty Reduction Support Credit (PRSC 8), the WB announced the same day.
The international lender said the size of the credit this year was made significantly larger than normal in response to the country’s request for additional resources to combat with the negative impacts of the global financial crisis, and meet the financing needs to implement the on-going stimulus package.
“The World Bank is pleased to be able to support Vietnam’s ongoing economic reforms while providing additional financing for the Government’s stimulus plan,” Victoria Kwakwa, the World Bank’s Country Director for Vietnam, said in the statement.
“We will be working closely with the government on the reforms needed, as well as the financing needs for the future to grasp the opportunities to rise out of the crisis, and are willing to expand the support if needed,” she added.
The WB said the PRSC 8 provides direct budget support to promote the Government’s implementation of the social economic development plan 2006-2010.
So far, through credit lines for poverty reduction, the WB said it has provided US$1.325 billion and mobilized US$817 million from other donors for Vietnam for the country’s poverty reduction and economic development efforts.