Denmark renews interest free-loan scheme for Vietnam

Denmark has extended an interest-free credit scheme to development projects selected by the Vietnamese government and implemented by Danish exporters, said a Viet Nam News report.
     The new agreement, signed in early August this year, opens up a line of credit worth US$40 million.
     This is the third such agreement between the two countries since the scheme began in 1995. The two previous agreements were worth a total of US$90 million.
     According to the Danish Embassy, 11 projects have so far received financial support worth a total of US$40 million. Six more projects will benefit under the new agreement to the tune of US$17 million.
     The two countries are currently assessing a list of 15 projects in various sectors, including water supply, food processing, husbandry, transport and television technology, the report said.
     They are also considering to include environment and renewable energy sectors in the scheme.
     The Danish Embassy said the programme had proved to be an effective development instrument in Vietnam, adding that this programme, which will expire in 2004, has given public sectors access to capital not available on commercial terms.
     This programme also came at a time when Vietnam faced fiercer competition and challenges through their integration into the global market.
     Danish Charge d’Affaires Mikael Hemniti Winther underlined that with increasing cooperation between the two countries, the Danish-Vietnamese Mixed Credit Scheme is expected to grow significantly in the years to come.
     Realization of these interest free loans projects would make an important contribution to the socio-economic development of Vietnam.

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