The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has secured a loan worth 120 million EUR (155 million USD) from Sumitomo Mitsui Banking Corporation (SMBC) and German Development Bank (KFW) to realise its faster growth in 2013.
Under an agreement signed in Hanoi on February 4, VietinBank was not required to have a guarantee from the Government or a third party for this five-year loan, which is included in the export finance program of Euler Hermes, Germany .
According to a VietinBank executive, in the wake of disadvantaged macro economic situation and difficulties facing Vietnamese commercial banks, Euler Hermes still agreed to insure up to 85% of the loan based on its evaluations of VietinBank’s financials, business operation, and credit-worthiness.
Pham Huy Hung, Chairman of the Board of Management of VietinBank, said the loan will significantly help the bank assist local production and business activities in the long run.
The combination of VietinBank’s strong development potential and the two giant banks’ expertise is expected to create growths for the banks and particularly Vietnam’s banking-financial market.-VNA
Under an agreement signed in Hanoi on February 4, VietinBank was not required to have a guarantee from the Government or a third party for this five-year loan, which is included in the export finance program of Euler Hermes, Germany .
According to a VietinBank executive, in the wake of disadvantaged macro economic situation and difficulties facing Vietnamese commercial banks, Euler Hermes still agreed to insure up to 85% of the loan based on its evaluations of VietinBank’s financials, business operation, and credit-worthiness.
Pham Huy Hung, Chairman of the Board of Management of VietinBank, said the loan will significantly help the bank assist local production and business activities in the long run.
The combination of VietinBank’s strong development potential and the two giant banks’ expertise is expected to create growths for the banks and particularly Vietnam’s banking-financial market.-VNA
