IFC’s Loan to Vietnam’s Orient Commercial Bank Increases U.S. Dollar Financing f...
Vietnam, July, 13 2012 -
IFC, a member of the World Bank Group, has agreed to provide Vietnam’s Orient Commercial Joint Stock Bank with a $10 million loan to increase U.S. dollar financing for small businesses in the export and import sector, helping sustain their operations amid the global credit tightening.
Orient Commercial Bank will be one of the first two banks to benefit from IFC’s newly launched Vietnam Small and Medium Enterprises Liquidity Facility program, which offers U.S. dollar financing to local banks for lending to businesses involved in trade-related activities.
“As small and medium businesses are our key clients, we are committed to expanding our lending in this market,” said Nguyen Dinh Tung, Acting CEO of Orient Commercial Bank. “Participating in IFC’s Vietnam Small and Medium Enterprises Liquidity program will allow us to provide U.S. dollar financing for small exporters and importers, helping them improve their operations to withstand a global economic slowdown.”
Over the last five years, IFC provided more than $1 billion to support small and medium importers and exporters in Vietnam through its Global Trade Finance Program.
“IFC is committed to improving U.S. dollar liquidity in Vietnam’s banking sector so that banks can keep financing small businesses in today’s tight credit conditions,” said Simon Andrews, IFC’s Regional Manager for Vietnam, Thailand, Cambodia, and Lao PDR. “We expect to have more partner banks participating in this program, creating more opportunities for importers and exporters and other businesses along the supply chain.”
IFC has partnered with Orient Commercial Bank since 2011. Through its Global Trade Finance Program, IFC has provided a facility of up to $20 million to the bank. In May, IFC also provided a $25 million financing package to the bank for small and medium enterprises and women-owned businesses.
In addition to Orient Commercial Bank, IFC has also agreed to provide financing to Techcombank under the Vietnam Small and Medium Enterprises Liquidity Facility program.