IFM upgrades trade finance limits to VN’s banks

VGP - The International Finance Corporation (IFC), member of the World Bank Group, on February 21 announced that it has increased trade finance limits for four Vietnamese banks to US$294 million to support enterprises amid the outbreak of the novel coronavirus (COVID-19).

February 22, 2020 4:17 PM GMT+7

The spread of COVID-19 has caused business disruption in Viet Nam. Besides reduction in tourism and other relevant service sectors, the epidemics has also caused harms to cross-border trade, manufacturing and agribusiness, among other sectors.

Thus, the IFC is supporting Vietnamese businesses by increasing trade limits for four client commercial banks including An Binh Commercial Joint Stock Bank, Tien Phong Commercial Joint Stock Bank, Viet Nam International Commercial Joint Stock Bank and Viet Nam Prosperity Joint Stock Commercial Bank.

The increased total limit of US$294 million will help improve these banks’ capacity to cover payment risks in granting trade financing to local companies, mainly small and medium enterprises.

This initiative follows the State Bank of Viet Nam’s call to financial institutions to support local businesses, which may be affected by the COVID outbreak, particularly those in trade and supply chain linkages.

Following this initiative, IFC is also exploring other expanded interventions to extend its support to Viet Nam to mitigate the economic impact of COVID-19 and help the nation sustain robust economic growth.

By Thuy Dung