FIMBank secures loan from IFC to boost trade in the Middle East and Sub-Saharan Africa
Malta-based trade finance institution FIMBank has received a US $30m loan from the IFC (a member of the World Bank Group) as part of the corporation’s Global Trade Liquidity Programme (GTLP). The GLTP is a unique global initiative that raises funds from international finance and development institutions, governments and banks. The Programme operates through global as well as regional banks to extend trade finance to importers and exporters in developing countries. FIMBank will be utilising these funds to support its trade finance activities in MENA and Sub-Saharan Africa.
James Gohary, manager for the Financial Institutions Group at IFC, said: “Small and medium enterprises form the backbone of most economies in the Middle East and Africa, but they often struggle to break into new markets. Trade financing can help change that, allowing innovative businesses to expand across borders, creating jobs and spurring growth.”
Commenting on the transaction, FIMBank’s acting CEO Simon Lay, said: “FIMBank considers the support of trade flows to and from emerging markets as being fundamental to the increase of global cross-border trade, particularly between Europe, the Middle East and Africa.”
Simon explained that the IFC is the largest global development institution focused exclusively on the private sector in developing countries. The nature of short term trade financing, allows these funds to be deployed several times in the course of the programme. This creates a positive multiple of the volume of business which can be financed, thereby allowing small and medium sized enterprises to achieve sustainable growth by financing investment and mobilising capital.
Simon also highlighted the fact that the agreement was signed following a comprehensive due diligence exercise.
Simon said: “We are proud to once again be partnering with the IFC and participating in this programme. The positive outcome of the Corporation’s due diligence is another vote of confidence in FIMBank’s capabilities as a trade finance specialist with an international network that can effectively channel liquidity and credit into emerging markets.”
