Nordic Countries Provide US$30Mln in Credits to Vietnam

An agreement on credits worth US$30 million for investments made by Nordic countries into telecommunications, small hydro electricity plants, processing industries, vocational training, medical equipment and the environment in Vietnam was signed on September 21, 2004 in Hanoi.

Present at the signing of the agreement were Ms. Le Thi Bang Tam, Vice-Minister of Finance (MoF), Mr. Jon Sigurosson, President of Nordic Investment Bank (NIB), Mr. Soren Mortensen, Vice President in charge of Asia-Pacific and representatives of MoF, the Ministry of Planning and Investment and others.

NIB has financed several programmes and projects in Vietnam since 1996. NIB credits are long-term (up to 20 years including a grace period of five years), being most suitable for development and business projects. In addition to co-financing with partners from Nordic countries in such major projects as Song Hinh hydro electric station, Bien Hoa coffee plant, expansion of the Bai Bang paper mill and Tam Diep cement plant, NIB has also provided credits to three electric projects (EVN) with a total value of US$85 million, US$20 million through the Vietnam Bank of Investment and Development to private small and medium enterprises, and US$15 million to coal projects (Vinacoal).

This US$30 million credit is the fifth from NIB in 2004 and the 12^th for Vietnam so far, bringing the total commitment of NIB to US$213 million since 1996.

During his working visit to Vietnam, Mr. Jon Sigurosson was received by Deputy Prime Minister Vu Khoan and signed additional documentation with MPI relating to the framework agreement.

• Thu Huyen