Vietnam Sacombank Gets US$25M from ADB to Lend SMEs
Vietnam's Saigon Thuong Tin Commercial Joint Stock Bank will get a loan valued at US$25 million from the Asian Development Bank to boost lending to local small and medium enterprises, the ADB said in a statement.
STB and ADB signed the deal on Sunday on the loan with a maturity of 6 years at ADB's 42nd annual meeting in Bali, the state-run Vietnam News Agency said.
This is the first loan by ADB to support SMEs, including finance leasing to help them upgrade machinery to modernize production, Philip Erquiaga, general director of the Private Sector Operations Department at ADB said.
Sacombank and its leasing unit said to use the fund to lend SME for 3-5 years without saying interest rates of the loan from ADB.
SMEs in Vietnam contribute over 60 per cent of the country's GDP and employ 90 per cent of local workforce. (VNS)
Vietnamese
