International Finance Corporation has loaned a record US$505 million to Vietnamese banks for the fiscal year 2011.
Vietnamese banks are using the amount borrowed to help local companies increase foreign trade and create jobs through its Global Trade Finance Program.
The programme has helped improve the capacity of nine banks to cover the risks of granting trade finance to local companies, mostly small and medium-sized enterprises.
Under the programme, the banks have issued 268 guarantees to support $1 billion in trade finance transactions.
This year Lien Viet Bank, Orient Commercial Bank, Tien Phong Bank and VIB Bank joined the programme with IFC's other partners in Viet Nam, namely An Binh Bank, Asia Commercial Bank, Sacombank and Eximbank.
"IFC's Global Trade Finance Program has helped extend our capacity considerably to deliver trade finance for local importers and exporters over the past few years when trade lines have been limited," said Do Diem Hong, Techcombank's Executive Vice President.
Techcombank, an IFC partner since 2007, has been the programme's largest user in Viet Nam.
Simon Andrews, IFC regional manager for Viet Nam, Cambodia, Lao and Thailand, said that IFC helped ensure continued trade flows vital to enterprise growth despite liquidity constraints and helped Viet Nam's banks attract more trade lines from other foreign banks.
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