ADB to Finance $50M More to Vietnam’s Microfinance Program

The Vietnamese government has approved the loan portfolio of the Microfinance Development Program (MDP) – subprogram 2, under which the Asian Development Bank (ADB) will finance $50 million. The subprogram aims to help the government build a more active and broad microfinance sector and enhance the accessibility of low-income earns to more diversified and sustainable microfinance services. The loan will come from the special funds of the Asian Development Fund (ADF), a major instrument of financing for the poorest member countries of the ADB. The State Bank of Vietnam, the country’s central bank, is the administrator of the subprogram 2. The subprogram 1 of the MDP was approved on July 5, 2012, with the ADB financing $40 million. It was scheduled to close on March 31, 2013. ADB has been very active in providing microfinance assistance to developing member countries in Asia and the Pacific region, with total approved microfinance projects amounting to $2.6 billion from 1988 to June 2014. Of the sum, ADB approved $126.954 million for microfinance projects in Vietnam. (baodientu.chinhphu.vn Sept 16)