[hepr-vn] WB, SBV signed a US$150 million concessional credit to assist Vietnam
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Sat Aug 2 06:54:52 EST 2008
WB, SBV signed a US$150 million concessional credit to assist Vietnam
The World Bank also envisages up to US$ 5 billion in support of Vietnam’s
development in the coming three years.
Available in: Tiếng việt
In Hanoi: Nguyen Hong Ngan (84-4) 934 6600 – 234
nnguyen5 at worldbank.org
Hanoi, July 29, 2007 – The State Bank of Vietnam and the World Bank in Vietnam
have today signed the financing agreement and related documents for the Seventh
Poverty Reduction Support Credit (PRSC 7) worth US$ 150 million in concessional
credit for Vietnam. Subject to confirmation, 12 donors are expected to
co-finance the credit, bringing the total amount of resources channeled to the
government budget close to US$ 370 million.
“Providing long-term finance is important in these difficult times, when the
trade deficit of Vietnam is still large and there is considerable turmoil in
world financial markets” said Martin Rama, acting country director for the World
Bank in Vietnam. “Together with the generous co-financing provided by other
donors, this credit will help the government succeed in its efforts to stabilize
the economy and attain the goals of the Social Economic Development Plan (SEDP)
2006-2010. PRSC 7 was in fact approved in recognition of the country’s progress
over the year in business development, social inclusion, natural resources
management and modern governance, which are also the pillars of Vietnam’s SEDP.”
In business development: The credit endorses the Government’s establishment of
consultation and information gathering mechanisms to identify the social and
environmental impacts of WTO accession. The Government has also assessed the
scope and nature of lending and other transactions among affiliated parties
within Economic Groups and General Corporations. In financial sector reform,
the Government has approved equitization plans allowing participation of
strategic investors for two SOCBs and completed the equitization of one of them.
It has also adopted market-based pricing systems to estimate the costs of
state-funded civil engineering investments.
In social inclusion, PRSC 7 recognizes the Government’s efforts to revise
tuition fees at secondary and tertiary levels, better reflecting market
conditions, and enhance policies to protect the poor. At the same time, a
health insurance law which better pools risks and allows improved incentives in
payment to service providers has been submitted to the National Assembly for
consideration. A voluntary pension program for farmers and informal sector has
been introduced, allowing for support for the poor to participate in the
program. And the Government has determined institutional responsibilities for
the implementation of the Gender Equality Law and monitoring of gender equality.
Regarding natural resources management, the guidelines for forest development
based on participatory land-use planning and independent monitoring have been
issued. At the same time, institutional responsibilities for integrated river
basin management have been assigned.
As for modern governance, the credit acknowledges the Government’s actions in
establishing criteria for selecting public investment projects and mechanisms to
monitor their financing and implementation. It also recognizes the issuance of
regulations on content and timing of disclosure of audit reports of the State
Audit of Vietnam, including audit reports of individual entities, as well as
implementation of an asset declaration requirement for senior officials and
their immediate families, with penalties for non-compliance.
Subject to confirmation, PRSC 7 is expected to receive further financial support
from the Asian Development Bank, Australia, Canada, Denmark, the European
Commission, France, Germany, Ireland, Japan, the Netherlands, Spain, and the
United Kingdom, bringing the total commitment for PRSC 7 close to 370 million USD.
The World Bank also envisages that up to US$ 5 billion in IDA and IBRD resources
could be channeled to support Vietnam’s development over the next three years.
The actual level of commitments will depend, among others, on Vietnam’s progress
in improving its economic policies and strengthening its institutions.
For more information on the projects, please go to the Projects and Program
section, on www.worldbank.org/vn
Permanent URL for this page: http://go.worldbank.org/0JOR2UECS0
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