Bhutan National Bank (BNB) has become the first bank in Bhutan to join the International Finance Corporation's (IFC's) largely L/C-based Global Trade Finance Programme (GTFP).

The programme is providing the bank with a US$1 million facility, risk coverage in a developing market, and a global network that will help grow the bank's trade finance business.

Global networks

Eligible L/C, bank guarantee and other trade-related instruments issued by BNB will now be confirmed by a large number of banks, backed by IFC's guarantee and listed by IFC under this programme across the world.

Bhutan's inclusion in the GTFP fits with IFC's strategy to partner with financial institutions and banks in frontier countries, and the World Bank affiliate sees the availability of trade finance as an important component for business development in emerging markets.

Advisory services

Trade development and advisory services for issuing banks are an integral part of the GTFP.

Advisory services modules include basic and intermediate courses on trade finance. In some cases, IFC places experienced trade finance bankers with issuing banks to help them develop their trade finance and other banking skills.

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