Stimulus package to target traffic development

The government’s 1 billion USD stimulus package is aimed at supporting bank loan interests for projects and programmes that have been planned to be accessible to soft loans in 2009-10, said a senior government official.

Minister of Planning and Investment Vo Hong Phuc announced on Dec. 23 that projects on major traffic systems, seaports, agricultural and rural development, housing for low income earners, and small- and medium-sized enterprises would be eligible to receive a 4 percent loan interest subsidy over the next two years.

Up to 50 percent of the total sum will be earmarked for traffic and economic zone infrastructure projects, 25 percent for agricultural and rural development, 20 percent for small- and medium-sized enterprises and the rest for housing for low income families.

The Ministry of Planning and Investment, the Ministry of Finance and the State Bank of Vietnam will have the responsibility for selecting the eligible projects and submitting them to the Prime Minister for approval.

The plan is expected to kick off in January 2009.

vna

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