Kathmandu, Nepal, January 26, 2015
—IFC, a member of the World Bank Group, will provide a $5 million trade finance facility to Nepal’s NMB Bank Limited under its Global Trade Finance Program to help boost international trade business for the bank and support small and medium business clients.
NMB Bank will establish trade partnerships with over 250 international banks through this program. IFC’s Global Trade Finance Program promotes trade in emerging markets, complementing the capacity of banks to ensure liquidity to export-oriented small and medium enterprises. The program’s network enables local financial institutions to tie up with major international banks to offer competitive financing.
“The bank’s expanding presence in trade finance makes it a key partner for IFC. Together we can support strengthening of Nepal’s financial sector,” said Upendra Poudyal, Chief Executive Officer of NMB Bank Limited. “The facility will help us support smaller businesses by offering letters of credit and guarantees.”
IFC already has existing trade financing engagements with six Nepalese banks – Himalayan Bank, Nepal Investment Bank Limited, Bank of Kathmandu, NIC Asia, Laxmi Bank, and Siddhartha Bank – under its Global Trade Finance Program.
“IFC’s partnership with NMB Bank will help accelerate economic growth in Nepal by providing small and medium enterprises with reasonably priced trade finance solutions for working capital requirements and assist in payments for imports,” said Valentino S Bagatsing, IFC Resident Representative for Nepal. “The trade finance facility with NMB Bank
is a signal of confidence in the Nepalese banking industry.”
Since its inception in 2005, the Global Trade Finance Program has issued more than 19,000 guarantees totaling $32 billion to banks for trade-related payment obligations of their clients in emerging markets. In 2014, IFC provided $7 billion to support emerging-market importers and exporters, and 79 percent of all guarantees went to small and medium enterprises. The program includes more than 550 partner banks in 150 countries.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, IFC uses its capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, IFC provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
www.ifc.org
About NMB Bank
NMB Bank Limited is a commercial bank operating in Nepalese Financial market for over nineteen years. The bank has an expanding network of 29 branches, four extension counters and 33 ATMs across the country.
For more information, visit
www.nmb.com.np
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