Vietnam will get EURO150 million loan from the European Investment Bank (EIB) as part-financing projects for climate change mitigation in the nation.

 The loan was signed in Hanoi on October 31 by Ms Magdalena Álvarez Arza, Vice President of the EIB, and Mr. Truong Chi Trung, Vice Minister of Finance.

 The loan will contribute to environmental sustainability and will make long-term financing available for investments that contribute to climate change mitigation through the avoidance or reduction of emissions of greenhouse gases by the use of renewable energy sources and energy efficiency enhancements, which are priorities for EIB lending.

Ms Álvarez, who is in charge of the EIB’s operations in Asia, believed that the investments financed under this framework loan will help promote sustainable and high-quality economic growth in Vietnam.

It will be provided through the Ministry of Finance to four state-owned banks for on-lending to small-scale climate change projects. The four state-owned banks, including JSC Bank for Investment and Development of Vietnam (BIDV), Vietnam JSC Bank for Industry and Trade (Vietinbank), Bank for Agriculture and Rural Development (Agribank) and Vietnam Development Bank (VDB), have the ability to source and manage investment schemes in the energy and industrial sectors.

This is the second loan of its kind in Vietnam. The first one being the EURO100 million Vietnam Climate Change Framework Loan signed in May 2009.

 It is provided under the Climate Change Mandate 2011-2013 and is the EIB’s eighth operation in Vietnam, where it started operations in 1996. Since then, the Bank financing in Vietnam has reached almost EURO650 million, including this loan./.

 

ATP