VietinBank Joins U.S.’s Export Credit Guarantee Program
The Commodity Credit Corporation (CCC) under the U.S. Department of Agriculture has approved the Vietnam JS Bank for Industry and Trade (Vietinbank) to join its GSM-102 export credit guarantee program with credit limit of $75 million, the bank said on its website.
VietinBank will issue irrevocable letter of credit in U.S. dollars for domestic companies to import agricultural and food products from the U.S., Vietinbank said in a statement.
The U.S.-based banks, in turn, will provide credit, guaranteed by the CCC within three years, for VietinBank to make L/C payment.
Vietnamese importers making payment via VietinBank can get access to the credit at preferential lending rates as U.S. banks are likely to loose lending conditions for the Hanoi-based bank since their loans are guaranteed by the CCC. (Financial Investment)
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