In order to help Vietnam mitigate impacts of climate change, on May 26th, 2009, at the head office of Finance Ministry, Deputy Minister Tran Xuan Ha and Mr Francisco de Paula Coelho, EIBs director for lending operations in Asia of EIB has signed the Environment Credit agreement. The signing ceremony was witnessed by the Head of the European Commission Delegation Sean Doyle, representatives of 4 state-owned banks: Vietnam Development Bank (VDB), Bank of Development and Investment (BIDV), Vietnam Bank for Agriculture and Rural Development (VBARD), Vietnam Bank for Industry and Trade.
According to this agreement, Ministry of Finance provide the loans to 4 state-owned commercial banks , who will on-lend the funds to final beneficiaries to carry out investments that contribute to climate change mitigation, through renewable energy or energy efficiency projects in accordance with the following credit correlation:
1. 70% of loan amount will be used with an aim of mitigating climate change by funding renewable energy and energy efficiency projects.
2. 30% of credit amount will be used for supporting the activities of European Commission in Vietnam and for direct investment and technology and technology and technique transfer from European Community to Vietnam .
At the signing ceremony , Francisco de Paula Coelho expressed his gratitude for tight cooperation of Vietnam ’s Misnistry of Finance. He emphasized that the credit lin.e will make long-term loans at attractive interest rates available to support renewable energy and energy efficiency projects.
At the signing ceremony Deputy Mininister of Finance Tran Xuan Ha highly appreciated the cooperation of European Investment Bank. The Ministry of Finance pledged to control losely these loans to achieved all the defined goals. On behalf of Vietnam’s Ministry of Finance Deputy Minister of Finance expressed his thankfulness to colleagues from EU, Minstry of Finance and State-owned banks for their contributions to this signing ceremony./.
E-MoF
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