Bank loan

World Bank loan to support Vietnam’s economic recovery

HANOI, Dec. 27 (Xinhua): The Vietnamese government and the World Bank have signed a $221.5 million financing agreement to support the country’s recovery from the Covid-19 pandemic through policy reforms.

The credit is a budget support operation and comes in the form of concessional terms for a period of 30 years with a grace period of five years, the World Bank said in a press release on Monday.

The loan will encourage policy reforms under two pillars, the first supporting an inclusive economic recovery by easing the tax burden on businesses, improving access to financial assistance among vulnerable groups, reducing gender gaps on the place work and promoting financial inclusion.

The second pillar contributes to greening trade policies, accelerating the adoption of e-government and increasing the use of renewable energy.

According to the bank, the Vietnamese government has moved quickly in recent months in implementing these reforms.

The pace of reforms should pick up as part of the stimulus package to be discussed in the National Assembly next week, he said.

In October, the World Bank lowered growth forecasts for Vietnam’s economy for this year to between 2 and 2.5%, as third quarter figures revealed the severe effects of the fourth wave of Covid-19, well below current figures. August forecast of 4.8%. – Xinhua