The World Bank’s Board of Executive Directors approved a US$150 million loan to the government of Vietnam for the Third Economic Management and Competitiveness development policy operation.

    The loan is providing flexible budget support to the Government while reinforcing selected structural reform priorities in the government’s Socio-Economic Development Plan, the World bank press release said.

    The operation supports a program of concrete policy reforms across three pillars contributing to the government’s efforts to maintain macroeconomic stability. Strengthening financial sector governance and fiscal management, including policies for non-performing loans and promoting the restructuring of banks, and debt and treasury management; Create a more transparent, efficient and accountable public sector. Strengthening public administration, state-owned enterprise management and public investment management for more transparency and improved regulatory environment; and Improve the business environment.

    The loan is financed by the World Bank’s International Bank for Reconstruction and Development, the financing window for middle-income countries. The US dollar-denominated loan is a LIBOR based, fixed spread loan with 29.5 years maturity, including a grace period of 10 years.

Source: QNA