Fimbank has received a US$30mn loan from the International Finance Corporation (IFC) as part of its Global Trade Liquidity Programme (GTLP).
The funds will be used to support the Malta-based bank’s trade finance activities in Mena and Sub-Saharan Africa.
Fimbank’s acting CEO Simon Lay says: “Fimbank considers the support of trade flows to and from emerging markets as being fundamental to the increase of global cross-border trade, particularly between Europe, the Middle East and Africa.”
Small and medium enterprises form the backbone of most economies in the Middle East and Africa, but they often struggle to break into new markets.
He explains that the nature of short-term trade financing means these funds can be deployed several times in the course of the programme, multiplying the volume of business that can be financed.
James Gohary, manager for the financial institutions group at the IFC, adds: “Small and medium enterprises form the backbone of most economies in the Middle East and Africa, but they often struggle to break into new markets. Trade financing can help change that, allowing innovative businesses to expand across borders, creating jobs and spurring growth.”