IFC helps Vietnamese bank aid SMEs amid COVID-19

VNA
The International Finance Corporation (IFC) – a member of the World Bank Group – will provide another US$40 million for the Orient Commercial Bank (OCB) to help with the support of COVID-hit clients, especially small and medium enterprises (SMEs).

Representatives of IFC and OCB at the signing of the loan agreement (Photo: VNA)

Representatives of IFC and OCB at the signing of the loan agreement (Photo: VNA)

The one-year renewable senior loan will offer OCB additional liquidity to continue lending to businesses as it is offering payment relief to its borrowers at the same time.
OCB will prioritise clients working in sectors facing direct impact of COVID-19 like tourism and production as well as those related to disease response activities.
“Our experience from past shocks, including the global financial crisis 2008, has taught us that micro, small and medium enterprises are especially impacted by the current crisis. Keeping them solvent is therefore key to saving jobs and limiting the economic damage,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Laos.
He noted the IFC’s support to OCB will not only help the bank extend payment relief to clients but also enable it to offer new loans to SMEs, supporting continued operations and preserving jobs, thereby accelerating Vietnam’s economic recovery.
Nguyen Dinh Tung, CEO of OCB, said the bank is reviewing and adjusting its credit programmes to make them more suitable for the current situation while continuing the implementation of preferential policies for firms to access capital and restore operation, thus helping with the recovery of the national economy.

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