The International Finance Corporation (IFC), a member of the World Bank Group, has expanded a trade finance line to 30 million USD for the Vietnam International Commercial Joint-Stock Bank (VIB) at a time when global liquidity is tightening.
The expansion allows the bank to help local companies increase trade, generate foreign exchange and create jobs.
Since joining the Global Trade Finance Program in May 2011, VIB has been able to expand its trade-finance products to small- and medium-sized enterprises in key export and import sectors.
"A trade line expansion will help VIB considerably improve our capacity to cover the payment risk in granting trade financing to local companies, mostly SMEs, especially when trade lines are limited," said Duong Thi Mai Hoa, chief executive officer of VIB.
"As part of the programme's extensive network of more than 400 participating banks, VIB will be recognised globally, which will increase our access to new markets."
VIB is one of the newest Vietnamese banks to join the programme since its launch in Vietnam in 2007.
"IFC's continued support to VIB is an example of how we can work with local banks to promote trade flows vital to enterprise growth despite liquidity constraints," said Simon Andrews, IFC regional manager for Vietnam , Cambodia , Lao PDR and Thailand .
Since its inception in 2005, IFC's award-winning Global Trade Finance Programme has issued more than 10,000 guarantees totalling 14.3 billion USD to banks on trade-related payment obligations of its financial institution clients in emerging markets.
The programme extends and complements the capacity of banks to deliver trade finance for importers and exporters on a per-transaction basis in markets where trade lines may be limited.
Through the programme, IFC provides coverage for more than 200 issuing banks in over 90 emerging markets and has a network of more than 400 participating banks worldwide.
In fiscal year 2011, 53 percent of the total volume went to support trade in the world's poorest countries and 79 percent went to SMEs./.
The expansion allows the bank to help local companies increase trade, generate foreign exchange and create jobs.
Since joining the Global Trade Finance Program in May 2011, VIB has been able to expand its trade-finance products to small- and medium-sized enterprises in key export and import sectors.
"A trade line expansion will help VIB considerably improve our capacity to cover the payment risk in granting trade financing to local companies, mostly SMEs, especially when trade lines are limited," said Duong Thi Mai Hoa, chief executive officer of VIB.
"As part of the programme's extensive network of more than 400 participating banks, VIB will be recognised globally, which will increase our access to new markets."
VIB is one of the newest Vietnamese banks to join the programme since its launch in Vietnam in 2007.
"IFC's continued support to VIB is an example of how we can work with local banks to promote trade flows vital to enterprise growth despite liquidity constraints," said Simon Andrews, IFC regional manager for Vietnam , Cambodia , Lao PDR and Thailand .
Since its inception in 2005, IFC's award-winning Global Trade Finance Programme has issued more than 10,000 guarantees totalling 14.3 billion USD to banks on trade-related payment obligations of its financial institution clients in emerging markets.
The programme extends and complements the capacity of banks to deliver trade finance for importers and exporters on a per-transaction basis in markets where trade lines may be limited.
Through the programme, IFC provides coverage for more than 200 issuing banks in over 90 emerging markets and has a network of more than 400 participating banks worldwide.
In fiscal year 2011, 53 percent of the total volume went to support trade in the world's poorest countries and 79 percent went to SMEs./.
