The International Finance Corporation (IFC), a member of the World BankGroup, has expanded a trade finance line to 30 million USD for theVietnam International Commercial Joint-Stock Bank (VIB) at a time whenglobal 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 hasbeen able to expand its trade-finance products to small- andmedium-sized enterprises in key export and import sectors.
"A trade line expansion will help VIB considerably improve our capacityto cover the payment risk in granting trade financing to localcompanies, mostly SMEs, especially when trade lines are limited," saidDuong Thi Mai Hoa, chief executive officer of VIB.
"Aspart of the programme's extensive network of more than 400 participatingbanks, VIB will be recognised globally, which will increase our accessto 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 withlocal banks to promote trade flows vital to enterprise growth despiteliquidity constraints," said Simon Andrews, IFC regional manager forVietnam , Cambodia , Lao PDR and Thailand .
Since itsinception in 2005, IFC's award-winning Global Trade Finance Programmehas issued more than 10,000 guarantees totalling 14.3 billion USD tobanks on trade-related payment obligations of its financial institutionclients in emerging markets.
The programme extends andcomplements the capacity of banks to deliver trade finance for importersand exporters on a per-transaction basis in markets where trade linesmay be limited.
Through the programme, IFC providescoverage for more than 200 issuing banks in over 90 emerging markets andhas a network of more than 400 participating banks worldwide.
In fiscal year 2011, 53 percent of the total volume went to supporttrade 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 hasbeen able to expand its trade-finance products to small- andmedium-sized enterprises in key export and import sectors.
"A trade line expansion will help VIB considerably improve our capacityto cover the payment risk in granting trade financing to localcompanies, mostly SMEs, especially when trade lines are limited," saidDuong Thi Mai Hoa, chief executive officer of VIB.
"Aspart of the programme's extensive network of more than 400 participatingbanks, VIB will be recognised globally, which will increase our accessto 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 withlocal banks to promote trade flows vital to enterprise growth despiteliquidity constraints," said Simon Andrews, IFC regional manager forVietnam , Cambodia , Lao PDR and Thailand .
Since itsinception in 2005, IFC's award-winning Global Trade Finance Programmehas issued more than 10,000 guarantees totalling 14.3 billion USD tobanks on trade-related payment obligations of its financial institutionclients in emerging markets.
The programme extends andcomplements the capacity of banks to deliver trade finance for importersand exporters on a per-transaction basis in markets where trade linesmay be limited.
Through the programme, IFC providescoverage for more than 200 issuing banks in over 90 emerging markets andhas a network of more than 400 participating banks worldwide.
In fiscal year 2011, 53 percent of the total volume went to supporttrade in the world's poorest countries and 79 percent went to SMEs./.
