The Asian Development Bank (ADB) approved on Monday a US$60 million loan for a financial reform program in Vietnam, targeting the development of the securities and bond markets.

The 24-year loan, which has a grace period of eight years, will be used for the second phase of the Third Financial Sector Program, the bank said in a statement.

The funds aim at developing the non-bank financial sector as well as strengthening rules and regulations to enhance transparency and provide investor and consumer protection, it said.

“Financial sector reforms, which have paved the way for increased private sector business activity, investment and job creation, have been instrumental in driving growth and helping Vietnam slash its poverty rate from 58 percent in 1993 to about 14.8 percent in 2008,” the Manila-based bank said in a statement.

The ADB said the new assistance will help bring the regulatory environment for capital markets up to international standards, with improved information disclosure and a stronger framework for issuing securities.

“These measures will strengthen market transparency, corporate governance and the risk management capacity of institutions, as well as aiding government efforts to limit the scope of unregulated markets for unlisted securities,” said Hasnah Omar, Senior Financial Sector Specialist in ADB’s Southeast Asia Department.