IFC Helps Ukraine’s Bank Forum Finance Trade, Boosting Economy and Creating Jobs
Kiev, Ukraine - IFC, a member of the World Bank Group, signed an agreement today to provide a $10 million trade facility to Ukraine’s leading commercial bank, Bank Forum, to help it grow its trade finance operations and expand access to finance for exporters which drive economic growth and job creation.
IFC’s Global Trade Finance Program promotes trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. 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 increased its trade financing efforts over the past three years.
“We are aiming to grow our trade finance business in Ukraine and today’s agreement with IFC will be instrumental in helping us to do so,” said Vadym Berezovyk, chairman of Bank Forum.
Bank Forum is the fourth Ukrainian bank to join IFC’s trade finance program. Since the program’s 2008 launch in Ukraine IFC has issued about $150 million in guarantees supporting export and import transactions in the country.
“Our partnership with Bank Forum is a good strategic fit for us and also a logical step in our continued efforts to support Ukraine’s post-crisis recovery,” said Rufat Alimardanov, IFC’s country manager for Ukraine and Belarus. “IFC’s cooperation enables more local companies to reach new markets and further expand foreign trade, which is key for Ukraine’s export-led economy.”
Overall, IFC’s Global Trade Finance Program has issued more than $10 billion in guarantees since the program’s start in 2005. The program extends and complements the capacity of banks to deliver trade finance for importers and exporters on a per-transaction basis in challenging markets where trade lines may be limited. Through the program, IFC provides coverage for over 200 issuing banks in more than 84 emerging markets, and has a network of more than 400 participating banks around the world.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.
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