Nizhni Novgorod, Russia, June 2, 2009—IFC,
a member of the World Bank Group, is providing its long-term partner NBD
Bank with a $7 million trade finance guarantee that will allow the bank
to expand financing to small businesses in Russia’s Nizhni Novgorod region.
NBD Bank has joined IFC’s Global Trade Finance Program as an issuing bank.
IFC will provide the bank with up to 100 percent guarantees for the import
and export operations of its clients, including small and medium enterprises.
The bank will have access to a global network of
more than 250 banks participating
in the program.
The agreement was signed today by Lars Thunell, IFC Executive Vice President
and CEO, and Alexander Sharonov, CEO of NBD Bank.
“We are proud to join IFC’s trade finance program, which will give us
more opportunities to support our clients and help expand their reach into
global markets,” said Sharonov. “IFC’s guarantee will have a significant
impact on our activities, particularly during these difficult times.”
Sharonov also noted that the bank hopes to strengthen its network through
the program and expand its client base, reaching more small and medium
Thunell said: “The IFC Global Trade Finance Program enables banks to help
smaller companies reach new markets and expand foreign trade. We believe
that NBD Bank is well positioned to expand its trade finance operations
and thus promote foreign trade in Russia’s Nizhni Novgorod region.”
NBD Bank is IFC’s long-term partner in the Nizhni Novgorod region. Since
2001, IFC has provided the bank with a total of $29.5 million in debt financing
to expand SME finance and energy-efficiency finance in the region.
The IFC Global Trade Finance Program, launched in 2005, supports trade
with emerging markets worldwide and promotes the flow of goods and services
to and from developing countries. IFC provides partial or full guarantees
for individual trade transactions and covers the payment risk of 150 issuing
banks in 72 countries. The program allows issuing banks to increase the
volume and value of trade transactions, with enhanced tenors and access
to competitive pricing terms.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totalled $16.2
billion in fiscal 2008, a 34 percent increase over he previous year. For
more information, visit www.ifc.org.