International Financial Corp (IFC), a member of the World Bank Group, has recently agreed to lend Orient Commercial Joint Stock Bank (OCB) with $10 million to support the US dollar source for the local bank.
OCB will be one of first two banks to borrow from the liquidity supporting programme for small and medium sized enterprises (SMEs) in Vietnam launched by IFC recently, which is intended to provide credit to local banks to lend enterprises operating in export import activities. Together with OCB, IFC also agreed to grant credit for Vietnam Technological and Commercial Joint Stock Bank (Techcombank) via this liquidity supporting programme.
The amount of money OCB received from IFC will be used to lend SMEs in export import sector, helping them stabilise operations in the context of global tightening credit.
Simon Andrews, regional director of IFC in Vietnam, Thailand, Cambodia, and Laos said that IFC wants to join to improve US dollar liquidity for Vietnam’s banking system to ensure the capital supply for SMEs.
In the past five years, IFC has provided more than $1 billion to support small and medium sized exporters and importers in Vietnam via its global trade finance programme.
IFC has been partner of OCB since 2011. Through its global trade finance programme, IFC has provided tools valued at up to $20 million for OCB. In May, IFC also joined a credit package worth $25 million for this local bank to lend SMEs and women-owned firms.