IFC, the private sector funding arm of the World Bank, has expanded a trade finance line to US$50 million to the Viet Nam International Commercial Joint Stock Bank (VIB).
The expansion, from last year's level of $30 million, is based on the IFC's positive assessment on financial prospects of VIB, customers' finance needs, and the bank's efficient disbursement of loans.
The increase, which is being made under the Global Trade Finance Programme (GTFP) of IFC, has helped VIB greatly improve its payment guarantee capacity in US dollars.
Since joining the GTFP in May 2011, VIB has been able to expand its trade-finance products to small- and medium- enterprises in key export and import sectors. The GTFP provides coverage for a variety of trade related instruments such as import L/C, standby L/C, guarantee, and bill of exchange/ promissory note to support enterprises' import and export activities.-VNS