Vietcombank ordered to finance project

October 19, 2010 | 11:26

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Hanoi - The State Bank of Viet Nam yesterday instructed Vietcombank to provide financial services to support Project No 1, part of the State-owned enterprise reform and corporate governance facilitation programme financed by the Asian Development Bank (ADB).

Project No 1 has $130 million in total capital, of which $120 million comes from ordinary capital

resources (ORRC) and $10 million from the Asian Development Fund (ADF).

The loan aims to assist Viet Nam as the country reforms a number of State-owned enterprises and their affiliated companies to improve their efficiency and governance.

The central bank also told the Finance Ministry to support the programme.

The ADB loan for the programme is worth $630 million, of which $600 million comes from ORRC and $30 million from ADF.

The loan is divided into three sections corresponding to projects No 1, 2 and 3. The Song Da Group, the Southern Waterbonrne Transport Corporation and the Debt and Asset Trading Corporation have been selected by the Vietnamese Government to execute the project.

Officials from the World Bank and International Monetary Fund have expressed concern that developing countries like Viet Nam may need to increase the cost of reconstruction and development capital and provide shorter terms for their issued loans.

VNS

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