IFC pledges $5m to NMB as trade finance

KATHMANDU, JAN 27 -

International Finance Corporation (IFC), the private sector arm of the World Bank Group, has pledged $5 million to NMB Bank as trade finance which will be used to finance export-oriented small and medium enterprises (SMEs).

IFC and NMB sealed the deal on Monday amid a function. IFC has been injecting liquidity into banks in many countries under its Global Trade Finance Programme in emerging markets. The move is aimed at complementing the capacity of banks to ensure liquidity to finance export-oriented SMEs.

NMB is the seventh bank in Nepal to get funding from IFC under this programme. Past recipients include Himalayan Bank, Nepal Investment Bank, Bank of Kathmandu , NIC Asia, Laxmi Bank and Siddhartha Bank.

NMB Chief Executive Officer Upendra Poudyal said that the bank’s expanding presence in trade finance makes it a key partner for IFC. “Together we can support the strengthening of Nepal’s financial sector,” he added.

According to Poudyal, the facility will help the bank support smaller businesses by offering letters of credit and guarantees.

IFC Resident Representative for Nepal Valentino S Bagatsing said that the trade facility with NMB was a signal of confidence in the Nepali banking industry.

According to him, IFC’s partnership with NMB

will provide small and medium enterprises with reasonably priced trade finance solutions for working capital requirements and assist in payment for imports.

IFC started the Global Trade Finance Programme in 2005.

Source: The Kathmandu Post