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VietinBank secures overseas funding
The Viet Nam Joint Stock Commercial Bank for Industry and Trade (VietinBank) secured a loan worth 120 million euros (US$155 million) from Sumitomo Mitsui Banking Corporation (SMBC) and German Development Bank (KFW) to speed growth in 2013.
Under an agreement signed in Ha Noi on Monday, VietinBank was not required to have a guarantee from the Government or a third party for this five-year loan, which is included in the export finance programme of Euler Hermes, Germany.
According to a VietinBank executive, despite the weak macro-economic situation and difficulties facing Vietnamese commercial banks, Euler Hermes still agreed to insure up to 85 per cent of the loan based on its evaluations of VietinBank’s financials, business operations and credit-worthiness.
Pham Huy Hung, Chairman of the Board of Management of VietinBank, said the loan would significantly help the bank improve its production and business activities.
The combination of VietinBank’s strong development potential and the two giant banks’ expertise is expected to create growth for the banks as well as Viet Nam’s banking-financial market as a whole.
Germany is one of the largest trade partners of Viet Nam. Last October, the two countries signed a financial co-operation agreement.
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