Kathmandu, Nepal, March 28, 2011—IFC,
a member of the World Bank Group, has announced that it will extend a $5
million trade facility to Laxmi Bank to enable the bank to support local
enterprises and boost trade opportunities in Nepal.
IFC’s facility will provide Laxmi Bank with risk coverage in a difficult
market and access to a global network that will help grow the bank’s trade
finance business. The network facilitates transactions in challenging markets,
promotes competitive financing, and builds correspondent bank relationships
with new institutions at low risk.
“By joining IFC’s Global Trade Finance Program, we will be recognized
by a wider range of correspondent banks globally. This partnership will
further help strengthen our international transactions,” said Suman Joshi,
Chief Executive Officer of Laxmi Bank.
The global economic crisis and reduced trade financing had posed a particular
economic risk to low- and middle-income countries. IFC, working with its
partners, has sharply increased its trade financing efforts over the past
“Through the Global Trade Finance Program’s bank network, local financial
institutions can establish working partnerships with a vast number of major
international banks that help broaden access to finance and reduce costs
for member banks,” said Kyle F. Kelhofer, IFC Country Manager for Bangladesh,
Bhutan, and Nepal.
To learn more about IFC in South Asia,
please visit www.ifc.org/southasia.
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 capital for private enterprise,
and providing advisory and risk mitigation services to businesses and governments.
Our new investments totalled $18 billion in fiscal 2010, helping channel
capital into developing countries during the financial crisis. For more
information, visit www.ifc.org.
About Laxmi Bank
Laxmi Bank was established in April 2002 and has since emerged as a key
player in all business lines - retail, corporate, treasury and small business
financial services. The bank today is widely recognized as one of the best
managed banks in Nepal and prides itself for high standards of corporate
governance, risk management systems, and arguably with the strongest IT
credentials in the local banking industry today.