The International Finance Corporation (IFC) on Saturday announced that the Metropolitan Bank Limited has become the first bank in Pakistan to join its Global Trade Finance Program. The Metropolitan Bank is one of the leading private commercial banks in the country.
Sources said the Global Trade Finance Program is aimed at supporting trade with emerging markets world-wide and promoting flows of goods and services between developing countries.
The IFC provides guarantee coverage of the bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks and to enhance their trade finance coverage.
Michael Essex, IFC associate director for the Middle East and North Africa, said: "IFC Global Trade Finance Program will support Metropolitan Bank's expanding trade finance business in line with the bank's growth strategy" in an e-release. "The increasing number of participant banks in IFC Global Trade Finance Program paves the way for developing countries like Pakistan to increase their share of global trade through this wide network of correspondent banks", he added.
Kassim Parekh, president and chief executive of Metropolitan Bank, said: "We are delighted to be working with the IFC in the Global Trade Finance Program. This will not only enable the Metropolitan Bank to further enhance its relationship with the IFC, but also provide our customers access to developing markets." IFC's first engagement with Metropolitan Bank was in early 2003 with a two-year facility under the Pakistan Trade Enhancement Facility established by the IFC and the ABN Amro Bank with the objective of expanding trade finance to Pakistani private sector businesses.
The IFC Global Trade Finance Program offers confirming banks partial or full guarantees against underlying trade instruments and covers the payment risk of participating issuing banks. The program allows issuing banks to increase the volume and value of trade transactions with enhanced tenors and access to competitive pricing terms.
The IFC is the private sector arm of the World Bank Group and is headquartered in Washington. The IFC co-ordinates its activities with the other institutions of the World Bank Group, but is legally and financially independent. Its 173 member countries provide its share capital and collectively determine its policies. The mission of IFC is to promote sustainable private sector investment in developing and transition countries, helping in reducing poverty and improving people's lives.