The Asian Development Bank (ADB) has extended $60m equivalent to Vietnam to expand financial sector reforms.

ADB’s Board of Directors have approved a loan for the second phase of the third financial sector program.

According to the ADB, the funds are targeted at the development of the nonbank financial sector, including the securities and bond markets, as well as strengthening rules and regulations to enhance transparency and provide investor and consumer protection, and overall financial stability.

Hasnah Omar, senior financial sector specialist in ADB’s Southeast Asia Department said that the results will be a more diversified and resilient sector with an increased share of capital market financing of domestic investments to support economic growth.

ADB has provided ongoing support through a series of sector programs beginning in 1996, with the previous focus on the commercial bank, leasing and insurance industries.

The 24-year loan has a grace period of eight years, with an annual interest rate of 1% during the grace period, rising to 1.5% for the balance of the term. The State Bank of Vietnam is the executing agency for the program.