ADB offers Vietnam loans to reduce poverty

The Asian Development Bank (ADB) will grant three credits of 111 million U.S. dollars to Vietnam, mainly helping the country reduce poverty, rehabilitate and improve infrastructure in 10 provinces severely affected by natural disasters in 2005.

Under agreements signed here Thursday by Governor of the State Bank of Vietnam Le Duc Thuy, and ADB's Country Director for Vietnam Ayumi Konishi, the ADB will give a loan of 15 million dollars to support a multi-donor program on reducing poverty in Vietnam, a credit of 51 million dollars to help rehabilitate and improve infrastructure in the 10 northern and central provinces, and a loan of 45 million dollars to address forest loss and degradation as well as rural poverty in the Central Highlands region.

Such donors as ADB, the World Bank and Germany are providing financial support to the Vietnamese government's Comprehensive Poverty Reduction and Growth Strategy for the 2002-2006 period. The underway multi-donor program is helping Vietnam in the transition to a market economy by removing structural weaknesses and improving its business environment.

Regarding the forest project, the loan will help establish sustainable forest management over one third of the country's natural forest estate, whose timber stocks are valued at about 4.4 billion dollars. The project is also aimed at improving forest sector governance, management, and incentive regimes in central highlands provinces.

Source: Xinhua