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ADB signs financing agreements with eight Vietnamese banks
The Asian Development Bank (ADB) today signed financing agreements aimed at bolstering trade with eight Vietnamese banks.
"Credit for trade financing has declined everywhere, including in Vietnam. These agreements will have ADB work with Vietnamese banks to support local companies in doing international trade. That will, in turn, help keep people in jobs," said Philip Erquiaga, Director General of ADB's Private Sector Operations Department.
The agreements come at a time when the global crisis has made financial institutions increasingly reluctant to lend because of the need to shore up their own capital. Failure to support companies with trade financing threatens to exacerbate and prolong the worldwide economic downturn, a problem for Asian nations like Vietnam that have active export industries.
Vietnam's export turnover dropped by 19% year-on-year in April to $US4.3 billion while import value tumbled 35% to US$5.5 billion in the same time period, according to the Vietnam Government's customs department. That left Vietnam with a trade deficit of US$1.2 billion in April after recording surpluses for the first three months of the year.
"Financing under the TFFP can be made available to both private firms and to state-owned enterprises. Vietnam needs to promote trade to counter the adverse impact of the global economic slowdown. Through the TFFP and other assistance, ADB is committed to helping Vietnam strengthen its resilience and to promoting its economic recovery," said Ayumi Konishi, ADB's Country Director for Vietnam.
The agreements are part of ADB's recently expanded US$1 billion Trade Finance Facilitation Program (TFFP) that is expected to mobilise US$15 billion for trade support in Asia by the end of 2013.
The ADB inked the pacts with the Asia Commercial Bank, the Military Bank, the Saigon Thuong Tin Bank, Techcombank, the Vietnam Bank for Agriculture and Rural Development, the Vietnam Bank for Industry and Trade, the Vietnam Export Import Bank, and the Vietnam International Bank.
ADB is expecting to sign the similar agreements with two more Vietnamese banks shortly, making the total number of participating Vietnamese banks to 10.
nhandan
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