The European Commission (EC) has granted 10 million Euro to co-finance the World Bank 5th Poverty Reduction Support Credit (PRSC5) in a signing ceremony for the financing agreement organized in Hanoi on July 30.

The EC is providing 10 million EURO in grant funding to co-finance the World Bank’s PRSC 5, totalling about 177.7 million Euro. The purpose is to support jointly with other donors, the Government’s policy reform agenda through policy dialogue and funding through the national budget increasing allocations to pro-poor sectors such as health and education. The ultimate objective is fostering growth and reducing poverty in Vietnam.

The EC is pleased to continue providing un-earmarked budget support through this instrument with a growing number of donors. The 10 million Euro grant is part of 77.7 million Euro, or 43.7% of the total operation, that is contributed by the EC and 5 European Union member states.

Through its contribution to the PRSC, the EC actually delivers on its commitments regarding the Aid Effectiveness Agenda in Vietnam, and implementing the Hanoi Core Statement. (CPV)