Yangon, Myanmar, February 18, 2014
—IFC, a member of the World Bank Group, is providing a $5 million trade finance facility to Myanmar Oriental Bank Limited, or MOB, that will allow the bank to help local companies increase their imports and exports, generate more foreign exchange, and create jobs.
As the first bank in the country to join IFC’s Global Trade Finance Program, this facility will enhance MOB’s capacity to cover the payment risks of exporters’ banks while granting trade financing to local companies, mostly small and medium enterprises. Since its launch in 2005, more than 550 banks from 150 countries have joined the program, which aims to promote trade in emerging markets by linking local financial institutions with major international banks and enabling local lenders to offer more competitive financing.
“This trade line will help extend our capacity in providing financing to local importers and exporters – an area that is still new to us,” said Kyi Kyi Than, MOB Managing Director. “Becoming a part of IFC’s extensive trade network is key to our bank being recognized globally and expanding our international transactions.”
IFC will also support MOB through advisory services to strengthen
its corporate governance and trade finance operations
.
“By boosting MOB’s capacity to deliver trade
-
finance solutions, IFC is helping improve trade flows that are vital to enterprise growth as the economy opens up,” said Vikram Kumar, IFC Resident Representative in Myanmar. “This marks the beginning of our support for local banks with capital and advisory services. This will help develop Myanmar’s financial sector and ultimately improve access to finance for small and medium enterprises, which are key drivers for economic growth and employment in the country.”
IFC, together with the World Bank, is supporting reforms and investments in Myanmar to strengthen the private sector and create jobs to reduce poverty and boost shared prosperity. IFC works to improve the country’s investment climate, access to finance, and infrastructure, with an initial focus on the power and telecommunications sectors.
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 more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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About IFC’s Global Trade Finance Program
IFC’s Global Trade Finance Program supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by IFC’s triple-A rating.
Since its inception in 2005, the Global Trade Finance Program has issued more than 17,000 guarantees totaling $28 billion to banks for trade-related payment obligations of their financial-institution clients in emerging markets. In fiscal year 2013, IFC provided $3.1 billion to support trade in the world’s poorest countries, and 79 percent of all guarantees went to small and medium enterprises. The program includes more than 550 partner banks in 150 countries.
About Myanmar Oriental Bank Limited
Myanmar Oriental Bank Limited is one of the leading banks in Myanmar. In the 21 years since its founding in 1993, the bank has delivered efficient and reliable banking services, helping promote financial intermediation in Myanmar and has grown to a network of 26 branches across the country. MOB is the first private bank in Myanmar to obtain an international banking license, accept visa credit cards and to partner with Western Union Money Transfer Service. For more information, visit www.
mobbankmm.com
