International Finance Corporation (IFC), the private sector arm of the World Bank Group, is providing a $2 million facility to the Bank of Kathmandu in Nepal, as part of its Global Trade Finance Program, according to its press release.

“IFC Advisory Services in the region – the IFC SouthAsia Enterprise Development Facility – will also help the bank tailor a program for institutional capacity building that will help enhance the bank’s services to its small and medium enterprise clients,” the release states.

Radhesh Pant, Bank of Kathmandu’s Managing Director, said, “IFC’s Global Trade Finance Program 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. This program will enhance visibility of Nepalese Banks in the Global Financial Market. In addition, through the capacity building program being instituted with IFC-SEDF’s advice and support, we hope to adopt better risk management practices and enhance the overall access to finance to small and medium enterprises in Nepal.”

Per Kjellerhaug, IFC’s Country Manager for Nepal , Bangladesh and Bhutan added, “Trade finance is a good example of the many products IFC offers to help develop a sector. Through this program, we provide risk coverage in difficult markets and combine global reach and maximum flexibility. We assist trade finance deals by delivering solutions through a global network of participating banks. The program complements the capacity of banks to deliver trade financing, and this partnership with Bank of Kathmandu paves the way for countries like Nepal to increase their share of global trade.”

Recently, the IFC had enlisted NIC Bank of Nepal in the Global Trade Finance Program.