Vietnam Urged to Adopt $150M WB Loan for Poverty Reduction Program

Vietnamese Deputy Prime Minister Vu Van Ninh has proposed President Truong Tan Sang to approve a credit agreement worth $150 million from the World Bank (WB) for the country’s poverty reduction support credit program 10 (PRSC 10). Earlier in Jan, the Vietnamese government and the global lender signed the loan agreement and related legal documents on the aid in Hanoi. With the loan, total WB funding to such 10 programs in the country has increased to $1.625 billion so far. PRSC 10, which is the last in a chain of PRSCs which have been carried out in Vietnam 2002, is aimed to support Vietnam’s reforms in reducing poverty and enhancing coordination among ministries and government agencies. PRSC targets to promote growth and poverty reduction through the use and improvement of policy and budget processes. The WB implements PRSC in developing countries with stable macro-economies and reasonable financial management systems.  Last Nov, Vietnam proposed the Japanese Ministry of Finance to raise the credit for PRSC 10 from JPY3.5 billion to JPY10 billion in the second phase of the 2011 fiscal year. Vietnam reports 3.05 million poor households and 1.61 million near-poor ones, respectively making up 14.2% and 7.53% of its total 90-million population, the Ministry of Labor, Invalids and Social Affairs (MOLISA) said. (Thoi Bao Ngan Hang – Banking Times Mar 19 p2)