Vietnams development and improved creditworthiness has made it eligible for World Bank financing as a middle-income country, the bank said Thursday.
The International Bank for Reconstruction and Development (IBRD), formed in 1944 as the original institution of the World Bank Group, will now finance Vietnams poverty reduction, replacing low or no interest loans from the International Development Association (IDA), the World Banks funding arm.
IBRD loans have more favourable terms than those available to middle-income countries in global markets, the bank said.
World Bank country director in Hanoi, Ajay Chhibber, said Vietnam could access the International Bank for Reconstruction and Development (IBRD) for financing poverty reduction which will supplement existing schemes.
– More support from the WB (World Bank) will help Vietnam achieve its growth in the future … in an inclusive and sustainable manner, Chhibber said
Vietnamese Prime Minister Nguyen Tan Dung said in October he expected the countrys GDP per capita would reach 960 dollars next year, higher than the predicted 835 dollars for 2007. This was expected to result in Vietnam being removed from the list of developing countries with low incomes.
Chhibber noted that the World Bank (WB) “will improve its funding for Vietnam to help the country foster its economic growth and poverty reduction”. The WB has pledged to finance Vietnam one billion US dollar within one year, ending next June, he said, noting that the bank has so far funded Vietnam over 7 billion dollar.
Kilde: www.worldbank.org
