The World Bank on Friday approved the eighth Poverty Reduction Support Credit (PRSC 8) for Vietnam worth US$350 million.
Part of a series of annual operations, the PRSC 8 provides direct budget support to promote the Government’s implementation of the Social Economic Development Plan (SEDP) 2006-2010.
The WB said the PRSC 8 provides both credit and policy support.
The annual operation that started in 2001 facilitates in-depth discussions of policies and reforms needed in various sectors.
The support credit is made in recognition of the country’s economic reform and poverty reduction efforts, and its progress in business development, social inclusion, natural resources management and modern governance, which are the four pillars of Vietnam’s development plan.
“This PRSC package is made at a critical time when Vietnam faces economic challenges amidst the global slowdown,” Victoria Kwakwa, WB country director for Vietnam, said.
“So far, the government’s stimulus package has had a positive impact on the economy,” she said adding the credit would be used to help implement the stimulus package.
The WB said it has also envisaged a total of more than $4 billion in commitments to support Vietnam’s development over the coming two years.
Resources will come from both the concessional lending source and the source for middle income countries.
Source: Thanh Nien
