Nizhni Novgorod, Russia, June 2, 2009
—IFC, a member of the World Bank Group, is providing its long-term partner NBD Bank with a $7 million trade finance guarantee that will allow the bank to expand financing to small businesses in Russia’s Nizhni Novgorod region.
NBD Bank has joined IFC’s Global Trade Finance Program as an issuing bank. IFC will provide the bank with up to 100 percent guarantees for the import and export operations of its clients, including small and medium enterprises. The bank will have access to a global network of
more than 250 banks participating in the program.
The agreement was signed today by Lars Thunell, IFC Executive Vice President and CEO, and Alexander Sharonov, CEO of NBD Bank.
“We are proud to join IFC’s trade finance program, which will give us more opportunities to support our clients and help expand their reach into global markets,” said Sharonov. “IFC’s guarantee will have a significant impact on our activities, particularly during these difficult times.” Sharonov also noted that the bank hopes to strengthen its network through the program and expand its client base, reaching more small and medium enterprises.
Thunell said: “The IFC Global Trade Finance Program enables banks to help smaller companies reach new markets and expand foreign trade. We believe that NBD Bank is well positioned to expand its trade finance operations and thus promote foreign trade in Russia’s Nizhni Novgorod region.”
NBD Bank is IFC’s long-term partner in the Nizhni Novgorod region. Since 2001, IFC has provided the bank with a total of $29.5 million in debt financing to expand SME finance and energy-efficiency finance in the region.
The IFC Global Trade Finance Program, launched in 2005, supports trade with emerging markets worldwide and promotes the flow of goods and services to and from developing countries. IFC provides partial or full guarantees for individual trade transactions and covers the payment risk of 150 issuing banks in 72 countries. The program allows issuing banks to increase the volume and value of trade transactions, with enhanced tenors and access to competitive pricing terms.
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 totalled $16.2 billion in fiscal 2008, a 34 percent increase over he previous year. For more information, visit
www.ifc.org
.
