Hanoi, April 22– The second phase of the World Bank – funded rural economic development project officially came into effect yesterday as disbursement began.

The phase was launched in Hanoi by representatives from the Bank for Investment and Development (BIDV) and the World Bank.

The project includes US$200 million in funding from the World Bank, and about $55 million from the BIDV and local commercial banks. It will tackle poverty reduction, hunger eradication and economic development in rural areas.

The project will be implemented across the country, except for inner-city areas of Hanoi, Ho Chi Minh city, Da Nang and Hai Phong, over the next five years.

Under the project, individuals, households, co-operatives and small to medium private enterprises will be eligible for loans.

Preference would be given to schemes and projects in agriculture, forestry, seafood and traditional rural trades and services.

Individuals and households will be eligible to borrow up to $400, while small to medium enterprises can borrow up to $1,000.

The BIDV aims to reduce the time it takes to receive World Bank funds from five years to between two and three years, in order to enter the next phase by 2005.

Bank officials said they expect to disburse about $60 million by the end of the year.

Source: Vietnam News, April 22

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