TEXT: UNITED STATES AND VIETNAM SIGN DEBT AGREEMENT
(Hanoi will repay debts owed by Saigon government)
Hanoi -- Treasury Secretary Robert E. Rubin and Vietnamese Finance Minister Nguyen Sinh Hung agreed April 7 that Vietnam will repay the United States approximately $145 million in economic debts owed by the former Republic of Vietnam.
According to a statement by the Treasury Department, the loans involved were made by the United Status on concessional terms from 1960-1975 to support the development of economic infrastructure and to finance the importation of agricultural and other commodities by Vietnam. In addition, the United States extended about $1 billion in economic grants during the same period.
Following is the official text of the Treasury Department release:
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April 7, 1997
Treasury Secretary Robert E. Rubin and Vietnamese Finance Minister Nguyen Sinh Hung agreed today that Vietnam will repay the United States approximately $145 million in economic debts owed by the former Republic of Vietnam. A "down payment" of more than $8.5 million of interest is due within 30 days of signing the agreement.
"~This is a significant step in the normalization of relations between our countries and the integration of Vietnam into the international financial community," Secretary Rubin said. "~The signal sent by this agreement will be important to the rest of the world in building confidence in Vietnam in a way that will benefit its economy. With Vietnam's continued cooperation in accounting for American POWs and MIAs, we look forward to working with Vietnam as it continues to make progress toward structural reforms, a market-based economy and regional and global economic integration."
This agreement, in part, implements the multilateral debt agreement Vietnam reached with the Paris Club of Western creditor countries in December 1993. As part of the Paris Club agreement, Vietnam acknowledged its responsibility for the economic and social debts of the Republic of Vietnam -- the government in the south prior to April 30, 1975. The Paris Club agreement called on government creditors to provide formal relief on overdue debt payments as of year-end 1993.
The bilateral agreement between Vietnam and the United States covers the entire amount of economic debt outstanding to the United States. The loans involved were made by the United Status on concessional terms from 1960-1975 to support the development of economic infrastructure and to finance the importation of agricultural and other commodities by Vietnam. In addition, the United States extended about $1 billion in economic grants during the same period.
Regular payments under the agreement will begin in July and extend until the year 2019.
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