The Asian Development Bank (ADB) has approved a US$100 million policy-based loan, aimed at developing Vietnam’s finance sector in order to support long-term economic growth and tackle income inequality.

ADB has decided to offer Vietnam a US$100 million policy-based loan to boost its financial development and inclusion. (Representative photo)

According to the bank’s announcement on December 4, its financial sector development and inclusion programme represents a medium to long-term partnership in finance sector development between ADB and the Government of Vietnam.

The programme is consistent with the government’s socio-economic development strategy during 2011-2020 and ADB’s strategy to 2030, in addressing the remaining poverty and income inequality.

The programme supports several government reforms to strengthen, deepen, and broaden the outreach of Vietnam’s formal finance sector.

These include improvements in the legal and regulatory framework to resolve non-performing loans and restructure weak credit institutions, the creation of an enabling environment for the money market and government bond market development, and policy measures to introduce a market-based approach to financial inclusion through microfinance and financial technology.

ADB financial sector economist, Duong Nguyen, said that the programme would support the government’s efforts to strengthen financial stability, develop domestic capital markets, and enhance financial inclusion./.

( VNF/NDO )