The World Bank has agreed to support the 10th Poverty Reduction Support Credit Program for Vietnam with a further loan of US$ 150 million.
The Poverty Reduction Support Credit Program aims to meet the required reforms needed to transform Vietnam from a low-income to a middle-income country. This credit amount is the last in a five-year cycle for implementation of socio-economic development plans.
Earlier, Prime Minister Nguyen Tan Dung had appointed related state agencies, headed by the State Bank of Vietnam, to hold talks with the World Bank for funding the poverty reduction program.
The State Bank said in a statement that talks will begin in Washington D.C. in early February. Further discussions with the World Bank aims to raise funds for the second phase of the project, meant to implement tasks to reduce poverty levels in six northern mountainous provinces of Lao Cai, Yen Bai, Hoa Binh, Son La, Dien Bien and Lai Chau.
International Bank for Reconstruction and Development, an arm of the World Bank approved a $150million stimulus package in 2009, to bring about reforms in Vietnam. The loan amount stretched over a period of 25 years and is the largest ever from the World Bank to any Southeast Asian country and the first by International Bank for Reconstruction and Development.
The Poverty Reduction Support Credit Program has helped Vietnam to come closer to its goal of becoming a middle-income country by 2010. The World Bank has pledged to provide $2.498 billion through Official Development Assistance (ODA) for Vietnam this year.
