WB Approves US US$100Mln Credit for Vietnam’s Economic Reform and Poverty Reduction

WB Approves US US$100Mln Credit for Vietnam’s Economic Reform and Poverty Reduction

The World Bank (WB) on June 29, 2005 approved US US$100 million in no-interest loan for Vietnam to support the country’s efforts to reduce poverty. The Fourth Poverty Reduction Strategy Credit (PRSC 4) supports the country’s broad-based reform program, including completing the transition to a market economy, ensuring social inclusion and strengthening governance. 

The WB committed US US$100 million from the International Development Association (IDA), the no-interest lending arm of the WB and the credit will be combined with more than US US$100 million pledged from 11 other multilateral and bilateral donors.

“The PRSCs have become the main vehicle for the government and the donor community to discuss a wide range of policy reforms,” Vietnam Country Director Klaus Rohland said. “This level of coordination has been important to better allocate resources and create jobs, as Vietnam works to build on its remarkable record over the past decade of growth and poverty reduction. Structural reforms are supported by the PRSC process and will help Vietnam lay the foundations for a sound financial sector.  This will be complementing and facilitating Vietnam’s full integration into the world economy after her accession to the WTO.”

Looking forward, the WB’s Board of Executive Directors pointed out that decisive progress on banking reform and on the fight against corruption will be the key to sustain this solid performance.

• T.N