The International Finance Corporation (IFC) is making US$5 million available to improve access to letters of credit (L/Cs) and bank guarantees for Nepalese small businesses.

The IFC funding is for Nepal's NMB Bank, which has now signed up to the IFC's Global Trade Finance Programme (GTFP).

Business support

"The bank's expanding presence in trade finance makes it a key partner for IFC. Together we can support strengthening of Nepal's financial sector," said NMB's chief executive officer, Upendra Poudyal.

"The facility will help us support smaller businesses by offering L/Cs and guarantees," he added.

It should also help boost NMB Bank's international trade business.

Country coverage

The bank becomes the seventh Nepalese bank to receive support under the GTFP, after Himalayan Bank, Nepal Investment Bank, Bank of Kathmandu, NIC Asia, Laxmi Bank and Siddhartha Bank.

Since its launch in 2005, the GTFP has issued over 19,000 guarantees for a total of US$32 billion to banks for trade-related payment obligations of their clients in emerging markets.

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