Top Ads

728 x 90
» » » VietinBank gets major loan from 2 foreign banks

FINANCE - A 5-year loan of EUR 120 million ($155 million) was signed between Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) and two giant foreign banks, without the secured commitment of the Vietnamese government or any third party, on February 4th in Hanoi.

The loan was given by Sumitomo Mitsui Banking Corporation’s Dusseldorf branch in Germany (SMBC) and KFW IPEX- Bank GMBH (German Government- owned Reconstruction Bank) in the Export Finance Insurance Program of Euler Hermes, Germany.

This event is of special importance for VietinBank early this year, signalling positive prospects for its strong development in 2013.

Euler Hermes, a German trade-credit insurer, provided insurance up to 85 pct of the loan based on their evaluation on VietinBank’s financial position, business operation, and ability to pay principal and interest.

Euler Hermes insuring the deal, and SMBC and KFW‘s approval of such a big loan for VietinBank, showed their trust and appreciation toward VietinBank.

The combination of VietinBank’s strong development potential and the two giant banks’ expertise and capacity is expected to bring economic efficiency not only for VietinBank, SMBC and KFW, but also for communities, enabling Vietnam’s banking-financial market to make progress.

Addressing the signing ceremony, Mr. Pham Huy Hung, Chairman of VietinBank, said: “This loan will guarantee VietinBank’s safe and effective operation, boosting its active participation in supporting domestic projects, developing the national economy, and meeting Vietnam’s demand for long-term economic development.”

For his part, Mr. Christof Kühnlein, Director of the Financial Institution and Trade Finance of KFW, affirmed that the loan agreement proved the unprecedented success in the long-term Export Finance Insurance Program without secured commitment of the government or any third party. This agreement would enable VietinBank to enter international financial markets.

Source: QDND

Post a comment