[hepr-vn] FR-WB: World Bank provides US$200 million for better access to rural finance

[Vern Weitzel]

Subject: [vnnews-l] FR-WB: World Bank provides US$200 million for better access 
to rural finance
Date: Sat, 15 Nov 2008 23:03:18 -0800 (PST)
sent to vnnews-l by Stephen Denney <sdenney at OCF.Berkeley.EDU>



http://www.nhandan.com.vn/english/business/151108/finance_wb.htm

Last updated: 17:11 - November 15, 2008


World Bank provides US$200 million for better access to rural finance


Nhan Dan Online - The World Bank has pledged to provide US$200 million to
help improve Vietnamese farmers' access to finance.
An agreement to the effect, the Vietnam Third Rural Finance Project, was
signed in Hanoi on November 14 by State Bank of Vietnam (SBV) governor
Nguyen Van Giau and Martin Rama, the World Bank Acting Country Director
for Vietnam.
The total cost of this project is US $279.29 million. The remaining US
$79.29 million will be provided by the Vietnamese government as the
counterpart fund (including contribution capital of the participating
credit institutions and the end borrowers).
The project aims to provide loans for investments in productive assets and
associated working capital needs for micro and small enterprises with less
than 50 employees, providing micro credit to the rural population, and
assisting the participating credit and financial institutions to render
better services and develop new products for the rural areas.
This project will increase the total investment in Vietnamese rural areas
to the minimum level of VND 4,228 billion, which will be provided to
90,000 economic units and 20,000 individuals, poor households, and micro
enterprises. Besides, it is expected to create 150,000 new jobs for the
countryside.
The five-year project, starting from December 2008, targets all of the
localities across the country, with the exception of the four cities of
Hanoi, Haiphong, Da Nang and Ho Chi Minh City.
The money will be channelled through the Bank for Investment and
Development of Vietnam  (BIDV), which performs a wholesale banking
function in disbursing the funds to the other financial institution, In
turn, the financial institutions will make loans with market rates to the
rural households and enterprises based on eligible criteria including
financial soundness, environment compliance, employment generation impact
etc.
The 3rd Rural Financial Project is to follow up the 1st and 2nd
WB-financed projects, which have the total amount of US $348 million.