Lebanon Businessnews News

IFC supports trade
Credit Libanais signs deal with IFC to guarantee trade risks of up to $20 million
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The International Finance Corporation (IFC), member of the World Bank Group, said that it has signed a trade finance agreement with Credit Libanais Group.

The agreement will help Credit Libanais access global import and export markets.

Credit Libanais is the fourth bank in Lebanon to join IFC's Global Trade Finance Program (GTFP). The program is dedicated to promoting trade with emerging markets through supporting the flow of goods and services to and from developing countries.

The $3 billion GTFP supports the capacity of banks to deliver trade financing through providing risk mitigation in new or challenging markets where trade lines may be constrained.

Under the agreement, IFC’s risk guarantees will allow Credit Libanais to offer its clients import and export financing. The IFC has allocated an amount of $20 million to be used as risk guarantees for trade-related transactions undertaken by Credit Libanais.

"IFC guarantees will help to solidify trust between foreign banks and firms and their Lebanese counterparts,” said Michel Khadige, the deputy General Manager of Credit Libanais Group.

Since the program’s inception in Lebanon in 2006, IFC has provided trade finance guarantees worth around $750 million to financial institutions in the country. The program also includes Bank of Beirut, Fransabank, BLC Bank, and Banque Libano-Francaise.

According to the IFC Director for the MENA region, Mouayed Makhlouf, through the program’s bank network IFC's local financial institutions can establish partnerships with major international and regional banks, thus improving access to finance and enhancing their global reach.
Date Posted: Jan 17, 2012
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