PVFC provide risk insurance for foreign currency borrower

April 09, 2011 | 18:28

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The PetroVietnam Finance Corporation (PVFC) is working with Morgan Stanley Group on the provision of derivative insurance services to limit risks to customer who borrow foreign currency.

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According to Nguyen Thien Bao, general director of PVFC, in the context of fluctuating USD/VND exchange rate at present, PVFC will focus on providing short-term contracts with fixed interest rate to reduce risks for both sides.

At present, PVFC is working to arrange almost $4 billion for the national key projects of the oil and gas industry such as Vung Ang Thermal Power Plant, Long Phu Song Hau Thermal Power Plant, Thai Binh 2 Thermal Power Plant, O Mon Gas Pipeline - Lot B.

In the third quarter, PVFC expects to sign contracts with the International Swaps and Derivatives Association (ISDA), which has 820 members in 57 countries participating in the derivatives market, as the basis for implementation of specific derivative contracts in the coming time.

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