World Bank Group member IFC has announced that the Bank of Bhutan is joining its global trade finance programme and receiving a facility of up to US$2mn. This will enable the bank – Bhutan’s largest in terms of asset size and deposits – to enhance support for local enterprises and boost the country’s international trade.
IFC’s trade finance programme’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. Bhutan National Bank joined the programme in August 2007.
“We are delighted to join IFC’s global trade finance programme,” says Kinga Tshering, CEO of 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.”
IFC has had a strong relationship with the Bank of Bhutan since 2006. IFC Advisory Services has helped the bank develop credit manuals and information-technology systems.
IFC commitments are more than US$9mn in equity and guarantees in Bhutan’s financial and hospitality sectors.
Reader Comments