The central city and the International Investment Bank (IIB) ink a Memorandum of Understanding (MoU) on co-operation and boosting socio-economic development through long-term investment projects in Da Nang. — VNS Photo Cong Thanh

DA NANG (Biz Hub) — The central city and the International Investment Bank (IIB) signed a memorandum of understanding (MoU) on co-operation and boosting socio-economic development through long-term investment projects in Da Nang.

Vice-Chairman of the city's people's committee Vo Duy Khuong asked the IIB to arrange loans for US$710-million worth of infrastructure projects such as water quality improvement, Lien Chieu Port construction and a feasibility study of the metro system.

Chairman of the IIB Board Nikolay Kosov said he was looking at providing development loans to small and medium-sized enterprises (SMEs) and improving the city's attractiveness as an investment destination for member countries of IIB.

He said IIB wanted to join infrastructure projects and provide loans to SMEs in the city.

In a meeting with the city authorities in August, the bank said it would provide medium and long-term loans to small and medium-sized businesses in significant infrastructure, energy, renewable energy and industrial zones sectors, as well as construction, tourism, information technology and agriculture, besides financial leasing services.

IIB would support the city's Investment and Development Fund and, with other banks, jointly sponsor loans for the city's development projects.

Da Nang has 15,000 small and medium-sized enterprises, but the city has just launched its VND120-billion (US$5.7 million) Investment and Development Fund to provide preferential loans to businesses.

The IIB, founded in 1970 on the basis of an intergovernmental agreement with member countries Bulgaria, Hungary, Cuba and Mongolia, besides the Russian Federation, Romania, Slovakia and the Czech Republic, as well as Viet Nam, has seen booming operations in Viet Nam since 2012.

The bank, with its head office in Moscow, Russia, has funds amounting to EUR374 million (US$333.61 million). — VNS