Loan agreement for coastal corridor project to be approved
(VOV) - The Government on July 16 asked the State President to approve a loan and grant agreements for the Greater Mekong Subregion Southern Coastal Corridor Project (GMS-SCC) with additional financing between the State Bank of Vietnam (SBV) and the Asian Development Bank (ADB).
The agreement was signed between the SBV and ADB on May 23, 2013.
Under the loan agreement, ADB committed to granting a US$25 million preferential loan to Vietnam with a maturity of 32 years, and an interest rate of 1 percent per year during the grace period of eight years and 1.5 percent per year in the following years.
Meanwhile, under the grant agreement, the Australian Government pledged to provide US$12.4 million in non-refundable aid through the Australian Agency for International Development (AusAID) to implement the project which will run from 2013 to 2019.
The implementation of the loan and grant agreements will help to diversify and develop the economy in the GMS.