Thimphu, Bhutan, June 12, 2009
—IFC, a member of the World Bank Group, announced that the Bank of Bhutan is joining the IFC Global Trade Finance Program and receiving a facility of up to $2 million that will enable the bank to enhance support for local enterprises and boost the country’s international trade.
IFC’s trade finance program’s risk coverage capability paves the way for countries like Bhutan to increase their share of global trade and export earnings in a cost-effective manner. This will complement the Bank of Bhutan’s capacity to deliver trade financing in a market where trade lines may be constrained or unexplored. This is the second bank IFC has supported in trade finance in Bhutan.
“We are delighted to join IFC’s Global Trade Finance Program,” said Kinga Tshering, Chief Executive Officer, Bank of Bhutan, “Access to the network will increase our international correspondent banking opportunities, boost our trade finance, and allow our clients to access new markets.”
Per Kjellerhaug, IFC Regional Manager for Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka, said: “IFC’s support to the bank reflects our commitment to help Bhutan’s corporate sector access global markets. The facility will open up new export opportunities in countries where such options have not yet been explored, and it will help strengthen ties with existing ones.”
IFC has had a strong relationship with the Bank of Bhutan since 2006. IFC Advisory Services had helped the bank develop credit manuals and information-technology systems.
After the global economic slowdown, the scarcity of trade financing has posed a particular economic risk to low- and middle-income countries. IFC, working with its partners, has sharply increased its trade financing efforts over the last year.
IFC commitments are more than $9 million in equity and guarantees in Bhutan’s financial and hospitality sectors. To learn more about IFC’s activities in South Asia, visit
www.ifc.org/southasia
.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
About the Bank of Bhutan Limited
Incorporated by the Royal Charter in May 1968, and later under Companies Act of the Kingdom of Bhutan, the bank has 26 branches spread across the country. It has near-equal distribution of operations in corporate and retail banking. The bank has a strong franchise in deposit mobilization and trade finance. It is the largest bank in terms of asset size and deposits in Bhutan. For more information, visit
www.bob.bt
.
