The French Development Agency (AFD) recently signed an agreement with the Ministry of Finance (MOF) of Vietnam to loan an equivalent of USD 44.7 million (€ 30 million), which is to be allocated towards a government project titled “Supporting private sector for People’s Credit Fund.”
The MOF states that it will then re-lend this credit to the Vietnam Association of People’s Credit Funds (VAPCF), an association that aims to provide funds to the rural poor in Vietnam. This re-extension of the credit to VAPCF will be based on certain provisions and criteria that require the loans to be made to low-income rural individuals, households, or private business that will invest the money in developing the agriculture industry. In addition to the loan, AFD has also provided aid, worth about USD 745,050, to VAPCF as well other local credit funds for the poor.
About the French Development Agency:
The French Development Agency is a government organization that focuses on development financing to support economic and social projects in both public and private sectors (including infrastructure, finance, urban and rural development, education, and health).
About Vietnam Association of People’s Credit Funds (VAPCF):
This association is a system of rural savings and credit co-operatives, created by the government to strengthen Vietnam’s banking system and restore public confidence in the formal rural finance system.
Bibliography:
[1] State Bank of Vietnam news. “AFD Gives € 30 mil. for private economic sector.” http://www.sbv.gov.vn/en/home/tinHDNH.jsp?tin=819
[2] French Development Agency. https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=French+Development+Agency
[3] Vietnam’s Association of People’s Credit Funds. http://www.bwtp.org/arcm/vietnam/II_Organisations/MF_Providers/PCF.htm
Original Source Article: AFD gives € 30 mil. for private economic sector
VGP – The French Development Agency (AFD) today signed with Vi?t Nam’s Ministry of Finance (MOF) the Agreement on opening a credit line worth of € 30 million for the project “Supporting private sector for People’s Credit Fund.”
Accordingly, the MOF will re-lend this credit to the Vi?t Nam Association of People’s Credit Funds (VAPCF) under preferential conditions.
The credit then will be allocated for individuals, households and private businesses trading in rural areas with the aim of encouraging them to invest in production and develop agricultural economy.
Apart from the credit, AFD also provide a non-refundable aid of €0.5 million for VAPCF and local People’s Credit Funds in order to strengthen financial management, administrative management and supervision at international standards so that the credit will be used safely and effectively.
(Source: Chinhphu.vn)
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