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Under an agreement signed between the Vietnam State Bank and the World Bank on September 15, Vietnam will be provided with an additional 100 million USD no-interest loan to reduce poverty.
The Fourth Poverty Reduction Strategy Credit (PRSC 4) of 100 million USD will have a loan period of 40 years with a 10-year extension and will be funded by the International Development Association (IDA).
This loan will be combined with more than 100 million USD pledged from 11 other multilateral and bilateral donors.
This is the fourth in a series of five planned PRSCs provided as direct budget support to the Vietnamese government in recognition of its progress in specific reforms set out in the country’s Comprehensive Poverty Reduction and Growth Strategy (CPRGS) adopted in May 2002.
WB Vietnam Country Director Klaus Rohland said, “The co-ordination between the Vietnamese government and international donors has facilitated the allocation of resources and creation of jobs. Vietnam is working to build on its remarkable record over the past decade of growth and poverty reduction.”
The PRSCs initially supported important reforms in trade integration with the world economy, private sector development and public financial management reform. They have increasingly dealt with the broader reform agenda of the Vietnamese government, including human and institutional development.
In the past 10 years, this programme has helped Vietnam halve its number of poor households. 20 million people have escaped poverty. The fourth loan proves that the PRSCs have been carried out effectively in this country.
Since 1993, the WB has supported 48 projects to fight poverty through its assistance in agriculture, infrastructure and health care with a committed credit loan worth 5.4 billion USD.
* On the same day, the Vietnam State Bank signed another agreement with the Asian Development Bank on a credit loan for over 38 USD to develop the country’s preventive medical system.
This project is aimed at improving the capacity of the supersory system, prevention of diseases and training of medical workers in 4 central and 46 epidemic prevention institutes.
Communist Party of Vietnam - (19/09/2005)
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