The Industrial and Commercial Bank of Vietnam (VietinBank) and theInternational Finance Corporation (IFC) signed on July 5 a 120 millionUSD trade line agreement.
The deal is set to assist Vietnamese businesses to develop and enhance their imports and exports.
As part of IFC's Global Trade Finance Program (GTFP), this fundingwill improve VietinBank's capacity to cover payment risk when grantingtrade financing to local companies, mostly small and medium enterprises.
Since its launch in 2005, more than 500 banks from 150countries have joined the programme, which aims to promote trade inemerging markets by linking up local financial institutions with majorinternational banks and enable the local lender to offer morecompetitive financing.
The Deputy General Director ofVietinbank, Nguyen Duc Thanh, hailed the trade line, saying that it willsignificantly boost the bank's capacity to deliver trade financesolutions to local importers and exporters.
"Through theprogramme, Vietinbank will be able to reaffirm its reputation globally,and this will help increase our access to new markets," Thanh said.
Vietinbank is the country's first State-run commercial lender to jointhe trade finance programme, which was introduced in Vietnam in2007.
Since then, more than 570 guarantees have been issued byparticipating banks to support 2.5 billion USD worth of trade finance,making Vietnam one of IFC's top trade finance markets.
In the fiscal year 2012-13 alone, the programme committed a record 800 million USD to participating banks.
By complementing banks' capacity to deliver trade finance solutions,IFC has helped businesses to maintain their import-export activities andensure continued trade flows vital to private sector growth despiteliquidity constrains, said Nathalie Louat, IFC's senior manager offinancial markets in East Asia and the Pacific.
"This shows ourcommitment to strengthening and fostering the development of Vietnam's financial markets," Louat added.
A partner of Vietinbanksince 2011, IFC has an 8.03 percent equity stake in the bank. Sincethen, Vietinbank and IFC have co-operated in many fields. IFC has helpedthe bank to expand its small and medium enterprises loan portfolio,strengthen its risk management, improve its corporate governance andgrow its energy-efficiency financing.-VNA
The deal is set to assist Vietnamese businesses to develop and enhance their imports and exports.
As part of IFC's Global Trade Finance Program (GTFP), this fundingwill improve VietinBank's capacity to cover payment risk when grantingtrade financing to local companies, mostly small and medium enterprises.
Since its launch in 2005, more than 500 banks from 150countries have joined the programme, which aims to promote trade inemerging markets by linking up local financial institutions with majorinternational banks and enable the local lender to offer morecompetitive financing.
The Deputy General Director ofVietinbank, Nguyen Duc Thanh, hailed the trade line, saying that it willsignificantly boost the bank's capacity to deliver trade financesolutions to local importers and exporters.
"Through theprogramme, Vietinbank will be able to reaffirm its reputation globally,and this will help increase our access to new markets," Thanh said.
Vietinbank is the country's first State-run commercial lender to jointhe trade finance programme, which was introduced in Vietnam in2007.
Since then, more than 570 guarantees have been issued byparticipating banks to support 2.5 billion USD worth of trade finance,making Vietnam one of IFC's top trade finance markets.
In the fiscal year 2012-13 alone, the programme committed a record 800 million USD to participating banks.
By complementing banks' capacity to deliver trade finance solutions,IFC has helped businesses to maintain their import-export activities andensure continued trade flows vital to private sector growth despiteliquidity constrains, said Nathalie Louat, IFC's senior manager offinancial markets in East Asia and the Pacific.
"This shows ourcommitment to strengthening and fostering the development of Vietnam's financial markets," Louat added.
A partner of Vietinbanksince 2011, IFC has an 8.03 percent equity stake in the bank. Sincethen, Vietinbank and IFC have co-operated in many fields. IFC has helpedthe bank to expand its small and medium enterprises loan portfolio,strengthen its risk management, improve its corporate governance andgrow its energy-efficiency financing.-VNA
