KATHMANDU: IFC, a member of the World Bank Group, announced that the Bank of Bhutan is joining the IFC Global Trade Finance Programme and receiving a facility of up to $2 million that will enable the bank to enhance support for local enterprises and boost the country’s international trade.

IFC’s trade finance program’s risk coverage capability paves the way for countries like Bhutan to increase their share of global trade and export earnings in a cost-effective manner. This will complement Bank of Bhutan’s capacity to deliver trade financing in a market where trade lines may be constrained or unexplored. This is the second bank IFC has supported in trade finance in Bhutan.

“We are delighted to join IFC’s Global Trade Finance Programme,” said Kinga Tshering, CEO of Bank of Bhutan, “Access to network will increase our international correspondent banking opportunities, boost our trade fina-nce, and allow our clients to access new markets.”

Per Kjellerhaug, IFC Regional Manager for Bang-ladesh, Bhutan, Maldives, Nepal, and Sri Lanka, said that IFC’s support to the bank reflects IFC’s commitment to help Bhu-tan’s corporate sector access global markets. The facility will open up new export opportunities in countries where such options have not yet been explored, and it will help strengthen ties with existing ones.”

IFC has had a strong relationship with the Bank of Bhutan since 2006. IFC Advisory Services had helped it develop credit manuals and information-technology systems. After the global economic slowdown, the scarcity of trade financing has 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 last year.