Press Releases
print

IFC’s Global Trade Finance Program Welcomes Its First Bank in Mozambique


In Mozambique:
Eduardo Boechat Laurentino
Phone: +258 (21) 48-2309
E-mail: eboechat@ifc.org

In Washington, D.C.:


Rita Jupe
Phone: + 1 (202) 458-8967
Email: rjupe@ifc.org

Washington, D.C., May 31, 2006—The International Finance Corporation, the private sector arm of the World Bank Group, announced today that Banco de Desenvolvimento e Comércio is the first issuing bank in Mozambique to join IFC’s Global Trade Finance Program.

The Global Trade Finance Program is a $500 million program to promote trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. Through the program, IFC provides guarantee coverage of 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.

Richard Ranken, IFC’s director of the Sub-Saharan Africa Department, said, “We are pleased that BDC is the first Mozambican bank to join the program. It will help the bank meet the financing needs of its corporate clients as well as those of small and medium enterprises—a vital engine of economic growth in Mozambique.”

Jyrki Koskelo, director of IFC’s Global Financial Markets, said, “The Global Trade Finance Program will allow BDC to increase its trade finance business worldwide as well as improve its capacity to support the transactions of private sector companies, especially small and medium businesses.”

Hermenegildo Gamito, chairman of the Board of Directors of BDC, said, “We are delighted to be the first issuing bank in Mozambique, and participating in the Global Trade Finance Program will support our expanding trade finance business.”

IFC in Mozambique

IFC’s strategy for Mozambique focuses on three activities: financing for the small and medium enterprise sector, advice and financing for large investment projects, and a stronger role in improving investment climate. Since 1984, when Mozambique joined IFC, the Corporation has directly provided $208 million for 21 companies; its total portfolio in Mozambique was $121 million, as of April 2006.  


About BDC

BDC was formally established in March 2000 and started operations in Mozambique in May 2001. BDC is currently ranked as the sixth commercial bank in Mozambique in terms of assets, and it has four branches in the country. It is a diversified financial institution but focuses its business primarily on midsize and small companies and on middle- and lower-income customers, providing a wide range of services and products such as corporate, mortgage, consumer, and small business loans.

About IFC

The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C.  IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent.  Its 178 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 to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.  For more information, visit www.ifc.org/gtfp.