The International Finance Corporation (IFC) is promoting its substantially letter of credit (L/C) based Global Trade Finance Programme (GTFP) in South Asia.

In its current drive, the World Bank Group affiliate is emphasising the important role it plays improving local bank performance in developing markets as well as providing guarantees for L/Cs and other trade finance instruments under the GTFP.

Managing risks

An IFC-hosted seminar in Dhaka, Bangladesh, set out to promote tools for managing risks associated with trade finance products and services and facilitate agreements between local banks that focus on international trade.

The seminar targeted high-level banking officials from Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka. Participants from 16 banks in the South Asia region were expected at the event.

Seminar aims

The seminar aimed to improve the trade finance operations of banks in South Asia and enable them to better support local entrepreneurs and small businesses, according to the IFC's country manager for Bangladesh, Bhutan and Nepal, Per Kjellerhaug.

"IFC's trade finance programme helps local banks offer enhanced tenors and access competitive pricing terms that facilitate trade with emerging markets worldwide and promote the flow of goods and services between developing countries," he said.

"The programme's training component supports our regional approach in enhancing South Asia's financial sector," he added.

Training emphasis

The seminar programme included sessions on L/Cs, trade finance rules, guarantee instruments, asset liability management and the process of applying IFC guarantees to various financing structures.

Last year, the IFC says it delivered 13 trade finance training courses, reaching 130 bankers from 25 countries.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.