22:30 (GMT +7) - Thursday 22/10/2020

Vietnam Today

Preferential IDA loans to cease from 2017

Released at: 16:29, 12/05/2017

Preferential IDA loans to cease from 2017

Illustrative image (Source: 100tin.com)

Vietnam still able to access non-preferential loans from the World Bank's International Development Association and lending from the International Bank for Reconstruction and Development.

by Hai Van

2017 will be the last year Vietnam receives preferential loans from the International Development Association (IDA), an arm of the World Bank (WB), and will then be able to access loans from the International Bank for Reconstruction and Development (IBRD).

The WB has also committed to sponsor Vietnam in 14 programs and projects worth $2.1 billion.

Deputy Prime Minister Pham Binh Minh emphasized the importance of international loans to Vietnam, adding that ministries have prepared plans to maximum the use of capital from the WB.

At a meeting on May 11 at the Government Office, Mr. Minh and World Bank Country Director in Vietnam, Mr. Ousmane Dione, also discussed the Country Partnership Framework (CPF) from 2018 to 2022.

There are four main sectors the CPF will focus on: growth in coverage and the private sector, investment in people and knowledge, sustainability, and the resilience of the environment.

Loans during the CPF implementation period of 2018-2022 will come from the IBRD and non-preferential IDA loans.

The IDA was established in 1960 to provide financial assistance to the world’s poorest nations, with the goal of reducing poverty through providing non-interest loans (also called credits) as well as non-refundable aid for programs and projects to promote economic growth and eliminate inequality.

The eligibility criteria for an IDA loan is dependent upon the country’s relative poverty level, as determined by the National Percentage of Gross National Income (GNI) per capita, and is updated annually.

The IBRD was established in 1945 and aims at sustainable development in developing countries with high income per capita through loans, guarantees, and research and consulting services. Loan terms are from 15 to 20 years.

Per-capita income in Vietnam reached more than $2,200 in 2016.

User comment (0)

Send comment