Kathmandu, April 9, 2013
—IFC, a member of the World Bank Group, is launching a training initiative for banks in Nepal, helping them address the financing needs of small and medium enterprises so that they can expand operations and contribute to the country’s economic growth.
Through a three-day training program starting today, IFC will train officials of Nepal’s commercial and development banks in portfolio monitoring, non-performing loan management and help them sharpen their skills to exploit the huge market potential in financing small businesses in Nepal. The SouthAsia Enterprise Development Facility, managed by IFC in partnership with the UK Government and the Norwegian Agency for Development Cooperation, is implementing the program. The government of the Netherlands helped develop the program.
“IFC’s training program is a timely and practical initiative that will guide bankers on how to cater to the specific needs of small and medium enterprises effectively,” said Rajan Singh Bhandari, President of Nepal Bankers’ Association.
About 111,000 small and medium enterprises operate in Nepal, employing an estimated 1.75 million people and accounting for a fifth of the country’s GDP. Yet, 25 percent of these businesses do not have formal banking relations with financial institutions. A recent IFC study estimated that Nepal has a $2.5 billion untapped market for small business lending.
“It is critical to meet the huge unfulfilled financing demand of small businesses in Nepal to promote the development of the sector, a key driver for economic growth and employment,” said Val Bagatsing, IFC’s Resident Representative in Nepal. “This initiative will help financial institutions expand their services to new customer segments and reach more small entrepreneurs.”
The training is part of IFC’s broader support to the financial sector in Nepal. IFC’s Access to Finance program facilitates the growth of small and medium enterprises in Nepal, helping enhance their financing options through a supportive financial infrastructure, including institutions, financial product development, and improved payment regulations.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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