Kathmandu, Nepal, March 28, 2011—
IFC, a member of the World Bank Group, has announced that it will extend a $5 million trade facility to Laxmi Bank to enable the bank to support local enterprises and boost trade opportunities in Nepal.
IFC’s facility will provide Laxmi Bank with risk coverage in a difficult market and access to a global network that will help grow the bank’s trade finance business. The network facilitates transactions in challenging markets, promotes competitive financing, and builds correspondent bank relationships with new institutions at low risk.
“By joining IFC’s Global Trade Finance Program, we will be recognized by a wider range of correspondent banks globally. This partnership will further help strengthen our international transactions,” said Suman Joshi, Chief Executive Officer of Laxmi Bank.
The global economic crisis and reduced trade financing had 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 past three years.
“Through the Global Trade Finance Program’s bank network, local financial institutions can establish working partnerships with a vast number of major international banks that help broaden access to finance and reduce costs for member banks,” said Kyle F. Kelhofer, IFC Country Manager for Bangladesh, Bhutan, and Nepal.
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 capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totalled $18 billion in fiscal 2010, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About Laxmi Bank
Laxmi Bank was established in April 2002 and has since emerged as a key player in all business lines - retail, corporate, treasury and small business financial services. The bank today is widely recognized as one of the best managed banks in Nepal and prides itself for high standards of corporate governance, risk management systems, and arguably with the strongest IT credentials in the local banking industry today.
