Japan to Give 25-B.-Yen Loans to Vietnam

Hanoi, March 6 (Jiji Press)--Japan has signed an agreement to provide Vietnam with a total of 25 billion yen in loans to help it tackle climate change and strengthen its economy. The signing ceremony took place in Hanoi on Wednesday, attended by Japanese Ambassador to Vietnam Hiroshi Fukada and Vietnamese Planning and Investment Minister Bui Quang Vinh. Of the total, 10 billion yen will be provided as part of Japan's 1.6-trillion-yen initiative to help developing countries cope with global warming. The 40-year loan will carry an interest rate of 0.3 pct per annum and will be spend on forest conservation and other measures. Among major emerging countries in Asia, Vietnam now sees the steepest growth in greenhouse gas emissions. It is also susceptible to sea level rises and other effects of global warming. The remaining 15 billion yen will finance steps to strengthen Vietnam's economy such as reforms of state-run enterprises. The annual interest rate on the 30-year loan has been set at 1.4 pct. The loans are crucially important for Vietnam's development, and Japan will continue to support the country, Fukada said in the ceremony. Vietnamese President Truong Tan Sang is set to visit Japan as a state guest later this month. END