VN, WB ink PRSC 8

VGP – Governor of the State Bank of Việt Nam (SBV) Nguyễn Văn Giàu and World Bank Country Director in Việt Nam Victoria Kwakwa today signed the credit agreement for the eight Poverty Reduction Support Credit (PRSC 8) which will inject US $350 million into the Government’s budget.

August 07, 2009 5:12 PM GMT+7

The signing ceremony between SBV and WB, Hà Nội, August 7 – Photo: VGP

Approved by the WB’s Board of Managers on June 25, 2009, this is the biggest credit loan committed by the WB for Việt Nam since the PRSC was kicked start. So far, the project has received US $1.325 billion as preferential loans.

PRCS aims at macro restructuring in order to speed up policy, institutional and legal reforms, facilitate socio-economic development and poverty reduction in Việt Nam, so that the country can become a middle-income one soon.

Credit loans sponsored by the WB and other donors are of great significance for Việt Nam, said Governor Nguyễn Văn Giàu, commiting to make full use of the loans.

He added that, those credit loans are supposed to facilitate the Government’s monetary and fiscal policies, especially when the country is doing its utmost to cope with the impacts posed by the global economic recession and preventing the recurrence of inflation.

“The WB is pleased to be able to support Việt Nam’s ongoing economic reforms while providing additional financing for the Government’s stimulus plan,” said World Bank Country Director Victoria Kwakwa.

She was quoted as saying that the WB will work closely with the Vietnamese Government on the reforms, and is willing to expand the support if needed.

By Kim Loan