HCM City — IFC, the private sector funding arm of the World Bank Group, has expanded a trade finance line for the LienVietPostBank, allowing the bank to further help small and medium enterprises in Viet Nam sustain import and export activities and create jobs despite tighter global credit markets.
An IFC press release says the LienVietPost Bank’s trade finance line under IFC’s Global Trade Finance Programme has now quadrupled to US$20 million. Since joining the programme in May 2011, the bank has expanded its trade and finance products to small and medium businesses in key export and import sectors, particularly in the Mekong Delta.
“The initial modest trade line of US$5 million was used up right after one month,” the release quotes Nguyen Thi Thanh Son, the bank’s deputy CEO, as saying. “We believe that the new expanded trade line will enable us to satisfy the increasing demand of import – export enterprises in difficult economic times and help LienVietPostBank gain a firm foothold in the global market.”
The release says that since its inception in 2005, IFC’s award-winning programme has issued more than 10,000 guarantees totaling $14.3 billion to banks on trade-related payment obligations of its financial institution clients in emerging markets. The joint stock LienVietPostBank is among more than 200 issuing banks in over 90 emerging markets covered by the programme.
“By complementing LienVietPostBank’s capacity to deliver trade finance solutions, IFC is helping ensure continued trade flows vital to enterprise growth despite liquidity constraints,” the release quoted Aliou Maiga, IFC Financial Markets Manager for East Asia and the Pacific, as saying.
“LienVietPostBank’s participation in our Global Trade Finance Programme marks the first steps of our partnership with the bank to expand access to finance for small and medium enterprises in Viet Nam, a key growth engine for the economy,” he said.
In fiscal year 2011, more than half of the total volume of the programme went to support trade in the world’s poorest countries and nearly 80 per cent of it went to small and medium enterprises, the IFC release said. — VNS