The European Investment Bank (EIB) signed an agreement valued for €100 million with the Socialist Republic of Vietnam, aiming to mitigate climate change in this region.


Mr. Francisco de Paula Coelho, EIB Director for Lending Operations in Asia, and Mr. Tran Xuanha, Deputy Minister of Finance, signed the loan agreement Tuesday in Hanoi.


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, “said Mr. de Paula Coelho.


The Ministry of Finance will make available the proceeds of the EIB's framework loan to four state-owned banks, who will on-lend the funds to final beneficiaries carrying out investments that contribute to climate change mitigation. the EIB said in a statement.


This is the EIB's fifth operation in Vietnam, where it started operations in 1996. it is also the second lending operation with the Ministry of Finance, which received a EUR 30 million credit line in 2005 for financing small and medium-scale projects.


The European Investment Bank, set up in 1957, is the EU's long-term financing institution promoting European objectives.


The EIB operates in the 27 EU Member States and more than 130 other countries. Lending operations outside the EU are part of the EU's cooperation policy with third countries.