Japanese ODA Loan to the Socialist Republic of Viet Nam

November 7, 2009
Japanese

1. The Government of Japan has decided to provide a Japanese ODA loan of up to 54.9 billion yen in total to the Government of the Socialist Republic of Viet Nam with a view to promoting the country’s efforts toward economic and social development and market economy. Notes to this effect were exchanged in Tokyo on November 7 (Sat) between Mr. Katsuya Okada, Minister for Foreign Affairs of Japan, and H.E. Mr. Vo Hong Phuc, Minister of Planning and Investment of the Socialist Republic of Viet Nam.
    
2. Outline of the Project
   Project name: Eighth Poverty Reduction Support Credit with Economic Stimulus Support
   This ODA loan is being extended in cooperation with the Eighth Poverty Reduction Support Credit (PRSC8) currently being extended to Viet Nam by the World Bank. Along with supporting the promotion of various types of reformations, this aid will provide emergency financial assistance and economic stimulus to the Government of Vietnam, which is affected by the worldwide financial and economic crisis.
    
3. Terms and conditions of the Loan

   (1) Emergency Budget Support Portion

   A. Credit limit: 47.9 billion yen

   B. Interest rate: the applicable London inter-bank offered rate applied for six months lending in Japanese yen

   C. Repayment period: 15 years (including a three-year grace period)

   D. Procurement method: general untied

   (2) General Poverty Reduction Support Credit Portion

   A. Credit limit: 7 billion yen

   B. Interest rate: 1.2% per annum

   C. Repayment period: 30 years (including a ten-year grace period)

   D. Procurement method: general untied

Related Information (Japan-Viet Nam Relations )
Related Information (Japan's ODA)