Bhutan National Bank has become thefirst bank in Bhutan to join the IFC’s global trade financeprogramme (GTFP). The programme is providing the bank with a US$1mn facility, and access to a global network that will help the bank expand its trade finance business.
This transaction follows on from previous work between the bank and IFC’s advisory services in the region – the South Asia Enterprise Development Facility (SEDF). This service aims to develop the needs of small to medium enterprises in the country, and establishing standard operating procedures within banks.
The GTFP programme supports trade with emerging markets, providing partial or full guarantees against underlying trade instruments and covers the payment risk of participating issuing banks.
“Bhutan is a unique country that has experienced social and economic development as a result of its commitment to growing while preserving the environment, its culture, and good governance. It gives me great pleasure to partner with one of the country’s highly progressive and forward-looking financial institutions,” remarks Farida Khambata, IFC regional vice-president for Asia and Latin America.
IFC advisory services are fast becoming a large component of IFC’s contribution to private sector growth in developing regions. IFC SEDF is continuing to work with Bhutan National Bank to develop new products and services.