The International Finance Corporation (IFC), a member of the World Bank Group, said it is providing a $30 million loan to Malta-based FIMBank to support cross-border trade in the Middle East and Africa.
The loan will help FIMBank offer trade financing to companies that import and export food, consumer goods, and machinery. The loan is designed to boost trade between Europe, the Middle East, and Africa, supporting economic development.
“The support of partners such as IFC signals an important vote of confidence in the FIMBank Group and its activities,” said FIMBank President Margrith Lutschg-Emmenegge. “We will continue to contribute to generate trade by increasing trade finance opportunities which increases development within these emerging economies.”
Launched in 2009, the Global Trade Liquidity Program has helped support about $20 billion in trade volume by channeling capital from more than 600 banks and development finance institutions at a time of global scarcity in trade finance.
“Expanding trade finance is a key element of IFC’s strategy in the region,” said Aftab Ahmed, IFC Financial Markets Director for Europe, the Middle East, and North Africa. “With easy and affordable access to trade finance, local entrepreneurs can reach new markets, grow their businesses, and hire more employees.”
IFC has been a shareholder in FIMBank since 2005 and is also a partner in FIMBank’s factoring joint ventures across the world in Russia, Egypt, and Brazil. The loan is part of IFC’s efforts to support trade finance in the Middle East and Africa, which helps promote private sector development in those regions.
IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. It helps developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments.
In financial year 2012, its investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges.