World Bank to grant Vietnam $3.8bn soft loan in next 3 years

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World Bank to grant Vietnam $3.8bn soft loan in next 3 years

The World Bank (WB) will grant Vietnam a preferential loan of nearly US$4 billion from the WB’s International Development Association (IDA) to support the country’s social and economic development in the next three years, the WB chief said.

The grant was announced by visiting World Bank Group President Jim Yong Kim at a meeting with the governor of the State Bank of Vietnam Nguyen Van Binh in Hanoi on Thursday.

The WB will provide Vietnam with over $3.8 billion in concessional financing through IDA in the next 3 years, Kim said.

This soft loan, which will be disbursed in the 2015-2017 period, will help Vietnam continue investing in improving the lives of the Vietnamese people, including the extreme poor, the WB leader said.

The two sides also signed the agreements on five WB loan projects/programs worth US$876 million in total.

During his two-day visit to Vietnam, the World Bank chief also met Party General Secretary Nguyen Phu Trong, President Truong Tan Sang and Prime Minister Nguyen Tan Dung.

At his meeting with Kim, Party General Secretary Trong proposed that the WB continue sharing its international experience with Vietnam in economic management, socio-economic development, and poverty reduction.

Kim told the host that he was impressed with Vietnam’s achievements and said the bank would continue to support and cooperate with the Southeast Asian country in the future.

At another meeting with President Sang, Kim said the bank would help Vietnam use the new funding effectively and keep assisting the country in vocational training, healthcare, climate change, and renewable energy.

“The World Bank Group is committed to supporting Vietnam as it moves ahead with these tough reforms and we truly appreciate our long and trusted relationship with Vietnam,” the WB website quoted Kim as saying.

Meanwhile, Prime Minister Dung said in his talks with the WB leader that he hoped the bank would provide assistance for Vietnam in reducing poverty, especially for ethnic minorities, supporting fishermen, and easing patient overload in hospitals.