HANOI: The Asian Development Bank said Tuesday it had lent Vietnam 500 million dollars to help it finance a "huge" fiscal deficit while the country's stimulus measures work their way through the economy.

Early this year Hanoi approved several spending measures totalling 8.6 billion dollars to help it cope with the impact of the global economic crisis.

The figure amounts to 8.7 percent of projected 2009 gross domestic product (GDP) and is "fairly large," ADB economist Bahodir Ganiev said.

Partly because of the new spending the ADB revised upwards its overall fiscal deficit forecast for the country this year from 9.8 percent of GDP to 10.1 percent.

But the potential direct impact of the measures on next year's budget is positive -- estimated at 1.8 percent of GDP -- because of the deferment of some tax payments and other factors, the Bank said.

"There is a huge fiscal deficit this year. That fiscal deficit for this year has to be financed," the ADB's country director, Ayumi Konishi, told reporters during an update on the Bank's outlook for the country. The

Among the measures introduced were temporary corporate tax cuts, interest rate subsidies on bank loans, a boost in planned infrastructure spending and extra assistance to the poor, the ADB said.

The Bank said it approved the five-year loan for Vietnam, which has had difficulties accessing financial markets for budget financing during the global crisis.

The Bank, which aims to reduce poverty, also revised Vietnam's projected growth rate this year to 4.7 percent from the 4.5 percent it estimated in March.

Vietnam's forecast growth is the second highest in Southeast Asia after Laos.