The International Finance Corporation (IFC) is to provide guarantees worth US$5 million to Lien Viet Bank under an agreement signed earlier this month.

The agreement falls within the IFC's Global Trade Finance Programme (GTFP) and complements the range of the corporation's activities in Vietnam.

L/Cs and guarantees

Lien Viet Bank's participation in the GTFP means that it can access IFC guarantees for import letters of credit, guarantees and bills of exchange.

The agreement was formally announced during the Asian Development Bank's annual meeting.

Under the agreement, the Vietnamese bank will also receive technical support from the IFC.

Vietnamese priorities

Such support fits with the IFC's strategic priorities in Vietnam, which focus on developing the financial sector and strengthening the investment climate.

The IFC is also supporting efforts to privatise the historically state-dominated Vietnamese banking sector.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.