The Ministry of Finance will make available the proceeds of the EIB’s framework loan to four state-owned banks, who will re-lend the funds to final beneficiaries carrying out investments.

Up to 70% of the loan amount will be used to finance projects in climate change mitigation, through projects in the renewable energy and energy efficiency sectors. Meanwhile, the remaining 30% will be injected into projects to support European presence in Vietnam, through direct investment or transfers of technology and know-how from Europe.

The European bank’s representative said interested promoters should address their requests to one of the four intermediary banks, which cover different areas of the economy. These are Vietnam Development Bank, Vietnam Bank for Agriculture and Rural Development, Bank for Investment and Development of Vietnam and Vietnam Bank for Industry and Trade.

Francisco de Paula Coelho, director of EIB, noted that “the framework loan will make long-term loans at attractive interest rates available to support renewable energy and energy efficiency projects, a priority for the bank’s lending.”

This is the European bank’s fifth credit agreement for Vietnam since it started operations in 1996, and the second lending operation signed with the Ministry of Finance, who received 30 million euro in 2005 for financing small and medium scale projects.