IFC provides $25 millionj trade finance to Federal Bank to fund small businesses
29 Jul 2010
IFC, the World Bank Group member, will be providing a trade finance of up to $25 million to India's Federal Bank to enhance its support to small and medium enterprises and help boost international trade opportunities.
IFC's trade finance facility will provide Federal Bank with risk coverage and access to a global network that will help grow the bank's trade finance business.
The network facilitates transactions in challenging markets, promotes competitive financing, and builds bank relationships with new institutions, thereby reducing risk and enabling smaller businesses to engage in trade.
P C John, executive director, Federal Bank, said, ''The trade facility from our long-term partner, IFC, will improve Federal's ability to support smaller businesses by offering short-term foreign-currency trade finance products.''
Federal Bank is the second Indian bank supported under IFC's global trade finance programme, the other being Kotak Mahindra.
''IFC's trade finance support to Federal Bank reflects our commitment to help the corporate and smaller business sectors increase their share of global trade by expanding the availability of trade finance,'' said Paolo M. Martelli, IFC regional director for South Asia.
