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Three state-run banks lend US$1.8 billion to Long Thanh airport project

The Saigon Times

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HCMC – Three major state-run banks – Vietcombank, VietinBank and BIDV – signed a deal in Hanoi today, June 1, to lend US$1.8 billion to the Airports Corporation of Vietnam (ACV) to carry out Component 3 of the first-phase Long Thanh International Airport project, reported local media.

This funding makes up 45% of the total cost of the third component that needs VND99 trillion and consists of essential works in the airport. The airport project has four components.

Vietcombank is the lead bank, providing US$1 billion, while US$450 million comes from VietinBank and US$350 million from BIDV.

Nguyen Thanh Tung, general director of Vietcombank, was quoted by Tuoi Tre newspaper as saying that this is the largest credit agreement in the banking system.

This is the first project to gain access to medium and long-term funding sources in U.S. dollar from state-run commercial banks with more competitive conditions than from international financial institutions.

Speaking at the signing ceremony, Prime Minister Pham Minh Chinh said that the Party and State have identified the construction of a synchronized, modern infrastructure system as one of the three strategic breakthroughs for national development.

PM Chinh highly appreciated the successful joint funding arrangement by Vietcombank, VietinBank and BIDV for the Long Thanh airport project, saying this is an important premise to encourage domesitc commercial banks to continue proactively cooperating in significant and important projects.

“For the first time, state-owned commercial banks have partnered to lend a major project US$1.8 billion, equivalent to over VND40 trillion. This demonstrates the spirit of self-reliance and resilience of the Vietnamese people,” emphasized the PM.

Nguyen Thi Hong, governor of the State Bank of Vietnam (SBV), said at the signing ceremony that the credit deal is a worthwhile effort of the three state-run banks to inject capital into projects of national importance and the economy as a whole.

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