Nepal Industrial & Commercial Bank became the first bank in Nepal to join the Global Trade Finance Program of IFC, the private sector arm of the World Bank Group.

The IFC announced, on May 9, that it is providing NIC Bank with a $2 million facility, “which will increase the volume and value of the country’s imports and exports while improving access to finance for local businesses.”

The Global Trade Finance Program supports trade with emerging markets worldwide and promotes the flow of goods and services between developing countries.

“IFC provides 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,” states a press release by the IFC.

Sashin Joshi, NIC Bank’s Chief Executive Officer, said, “We are delighted to work with IFC’s Global Trade Finance Program. It will help us expand our network of corresponding banks and create new and valuable business opportunities for our clients in Nepal and around the world. In addition, through the capacity building program, we hope to adopt better risk management practices.”

“I am very pleased that NIC Bank has signed up under the guarantee program,” said Per Kjellerhaug, IFC’s Country Manager for Nepal, Bangladesh and Bhutan . He added, “The Global Trade Finance Program is an important mechanism to get local banks into an active global network that facilitates transactions in challenging markets, promotes competitive financing, and builds correspondent bank relationships with new institutions on a low-risk basis. Trade finance is one good example of the many products IFC offers to help develop a sector.”