The Technological and Commercial Joint-stock Bank (Techcombank) and the Asia Development Bank (ADB) have signed an agreement on cooperation in support of export businesses, including small- and medium-sized private enterprises.
With this agreement, Techcombank becomes one of the first five banks in the world having signed and implemented such a contract with ADB.
Under this agreement, ADB will act as guarantor of 80 percent of the payment for the letters of credit for Techcombank's client businesses when they have transactions with foreign banks. The guarantee cost will be markedly reduced, benefiting clients of Techcombank and their overseas partners. ADB will also provide Techcombank with a credit limit with a preferential interest rate for loans to clients of Techcombank for import-export activities. On Nov. 12, Techcombank disbursed 3 million USD for the first loans of this kind.
The two sides agreed to prolong the term of the credit limit and increase the limit for Techcombank to 50 percent of its own capital. They also considered the possibilities of cooperation in providing loans for house purchase and guarantee for Techcombank to issue valuable papers in the international market.
The Techcombank-ADB agreement will help create favourable conditions for the Vietnamese businesses which are clients of Techcombank to expand outlets for their exports, and increase the prestige of Vietnamese commercial joint-stock banks in the international financial market.
VNA - (19/11/2004)