ADB grants VN with CSF loan to mitigate crisis impacts
VGP - The Asian Development Bank’s (ADB) on Tuesday approved a five-year loan of US $500 million, allocated from its Countercyclical Support Facility (CSF) fund, to support Việt Nam’s critical public expenditure programs in 2009 and 2010 to counter the adverse impacts of the global economic downturn.
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The loan will allow the Vietnamese Government to meet its financing needs and maintain economic growth through fiscal response to the current challenging period.
The Government will be better able to subsidize its social spending and poverty alleviation programs, and continue with its longer-term development goals in 2009.
Last week, the Vietnamese PM ordered the competent agencies to work together and take proper measures to quickly disburse and effectively use the ADB loan.
He assigned the State Bank of Việt Nam, Ministry of Finance, and Ministry of Planning and Investment to consider the scenario under which the Bank of Investment and Development of Việt Nam will take the entire loan and use it to re-fund projects.
Severely affected by the global economic downturn, Việt Nam has witnessed slumps in foreign direct investment, export, and remittances. Its economic growth is projected between 4% and 5% in 2009, a marked slowdown from an average of 7.6% in the past four years.
Since the crisis broke out, Việt Nam has adopted stimulus packages that can help to generate more jobs; cut tax and deferred tax payments to support business and boost domestic consumption; provided credit guarantees and other financial measures to maintain the credit circulation; and increase its social welfare budget for the poor and vulnerable groups.
