ABA Bank joins IFC’s Global Trade Finance Program to enhance support of Cambodian businesses
ABA Bank, a member of National Bank of Canada Group, signed an agreement with the International Finance Corporation (IFC) to join its Global Trade Finance Program (GTFP) and expand access to trade finance for Cambodian small and medium enterprises involved in international trade.
The GTFP facility provides ABA Bank with coverage in granting trade financing to local companies and access to a global network to help grow its trade finance business. In particular, the agreement facilitates ABA Bank’s working partnerships with major international and regional banks in the program, broadening access to finance and reducing cash collateral requirements for ABA Bank’s customers.
“This partnership bolsters ABA Bank’s capacity and aim to help develop and improve access to finance for SMEs, which are the key drivers for economic growth and sustainable business in Cambodia,” said Zhiger Atchabarov, Chief International Operations Officer of ABA Bank. “Following our strategy to facilitate Cambodian economic growth, ABA Bank is optimistic that joining IFC’s GTFP will help to open more opportunities, create additional products, provide enhanced solutions for trade companies, offer more competitive pricing and increase access to international banks and markets,” he added.
“IFC’s trade finance support to ABA Bank will enable the country’s small and medium enterprise sector to increase its share of global trade,” said Kyle Kilhefner, IFC Country Manager for Cambodia, Lao PDR and Vietnam. “Expanding trade flows is essential to SME growth and will help boost the economy, generate foreign exchange, and create jobs.”
IFC’s GTFP supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by IFC’s triple-A rating. Since its inception in 2005, the award-winning program has provided over 18,000 trade finance guarantees to support more than $30 billion in emerging markets. The program includes more than 500 bank partners in nearly 100 emerging-market countries.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org.