Hanoi, April 3, 2008—IFC, a member
of the World Bank Group, today announced that it has extended a loan to
Technological and Commercial Joint Stock Bank (Techcombank) to help small
and medium enterprises gain better access to finance in Vietnam. The
320 billion Vietnamese dong loan (about $20 million), IFC’s first for
SME financing in the country, reinforces the long-standing partnership
between the two organizations.
In addition to the long-term local currency
loan, IFC will provide Techcombank with a trade finance line of up to $10
million and advisory services for small businesses. The trade finance
line will be part of the IFC Global Trade Finance Program.
Luu Thi Anh Xuan, Vice President of Techcombank, said, “We now serve more
than 20,000 SMEs, which make up about 65 percent of our outstanding loans.
SME banking will continue to be the main focus of our strategy. We provide
a package of financial products and services to best meet their demands.
These range from traditional products like working capital financing, trade
financing, payments, and account services to more advanced products such
as factoring, logistic financing, and supply-chain financing. With IFC’s
financing and advisory services, we hope to further enhance our support
and funding activities for our SME customers.”
Sin Foong Wong, IFC Country Manager
for Cambodia, Lao PDR, and Vietnam, said, “This partnership with Techcombank
is very important in helping Vietnam’s small and midsize businesses gain
access to finance as there is a large segment of the private sector that
has been traditionally underserved by banks. By expanding credit access
to SMEs, we are hoping to catalyze funding from other commercial sources
for further lending to support the sector.”
IFC began working with Techcombank in
2001 and has helped improve the bank’s risk management capacity by providing
advice on modernizing its core banking system, including services for SMEs.
With IFC’s advisory support, Techcombank and nine other shareholder banks
have launched the Bank Training Center, Vietnam’s first and only institution
to provide affordable training with international standards for the commercial
banking industry. Most recently, with IFC’s support, Techcombank and ten
other Vietnamese banks have invested in a holding company to set up the
country’s first private credit bureau.