The World Bank (WB) decided to increase its grant for the annual poverty reduction support operation of Laos to US$20 million this year from US$10 million last year, the Lao newspaper Vientiane Times reported on Thursday.

The agreement to that decision was signed in Vientiane on Wednesday between bank country director for Southeast Asia Annette Dixon and Lao deputy Minister of Finance Viengthong Siphandone, said the newspaper.

The decision was made following a high-level dialogue between the World Bank and the Lao government under the chairmanship of Lao Prime Minister Bouasone Bouphavanh a few months ago, the newspaper said.

The additional finance from the bank would help Laos address a growing budget deficit as a result of the global economic recession, said WB country director to Laos Patchamuthu Illangovan.

Laos has seen the state budget deficit rise to 4.56 percent from 3.33 percent this fiscal year, said the newspaper.

(Xinhua News Agency September 11, 2009)