Funds to be used for roads and infrastructure.
On March 27 the State Bank of Vietnam (SBV) has allowed the Bank for Investment and Development of Vietnam (BIDV) to sign a lending contract with the Laos Government in order to construct infrastructure projects.
SBV approved the lending of $26.84 million, which can be extended to $80 million, for the construction of a road from Xamtay to Thuongthu as well as $150 million in additional funds for the implementation of new transport infrastructure projects in Hua Phan province ($120 million) and an irrigation station in Xinh district, Luang Nam Tha province ($30 million), according to the document.
BIDV has the responsibility to comply with regulations on foreign exchange for lending, foreign debt collection of credit institutions and other relevant provisions of the law. It is solely responsible for recovering the debt in full and in accordance with the written commitment of the Government of Laos, according to the SBV website.