Techcombank to Supply US$37Mln Loan for Cashew Businesses in 2007

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) will set aside around VND600 billion or US$37 million to help cashew exporting and processing businesses this year, Techcombank’s General Director Nguyen Duc Vinh said.

 

The assistance can be provided in the forms of financial packages for export activities, financial solutions to improve production and business activities, mid- and long-term loans to renovate technology, and preferential exchange rates and interest rates.

Techcombank will cooperate with logistic companies like Gemadept and Vinalink to facilitate and lessen the cost of raw-material storage.

 

Currently the bank is supporting 154 cashew enterprises with US$21.8 million in loans and financial assistance.

 

However, Techcombank’s loan partly backs the cashew industry because it needs as much as US$281-US$312 million to fulfill its yearly production target.

 

Last year Vietnam’s cashew exports reached US$520 million. The number is expected to climb to US$700 million this year. Cashews are one of the country’s 10 largest farm exports. Major markets include the US, China and Europe. Cashew cultivation area is expected to expand from 350,000 ha to 450,000 ha by 2010.

 

In a related development, the bank plans to set up a securities arm in order to expand its financial market business. Under the plan, Techcombank’s securities company will operate as joint stock concern with registered capital of VND300 billion (US$18.8 million). The bank will hold a controlling stake in the firm, while other shareholders will include foreign investors. (Thanhniennews.com, Vietnam & World Economy)