YANGON—The International Finance Corporation announced on Tuesday that it has provided a US$ 5 million trade finance facility to locally-owned Myanmar Oriental Bank Limited that will allow the bank to help local companies increase their imports and exports, generate more foreign exchange, and create jobs.
This facility will enhance MOB’s capacity to cover the payment risks of exporters’ banks while granting trade financing to local companies, mostly small- and medium-sized enterprises, IFC said in a statement.
“This trade line will help extend our capacity in providing financing to local importers and exporters – an area that is still new to us,” said Kyi Kyi Than, MOB’s managing director, adding that becoming a part of IFC’s extensive trade network is key to the bank’s reputation and expansion of international transactions.
IFC will also support MOB through advisory services to strengthen its corporate governance and trade finance operations. MOB is the first bank in the country to join IFC’s Global Trade Finance Programme, which aims to promote trade in emerging markets by linking local financial institutions with major international banks. It also enables local lenders to offer more competitive financing.
More than 550 banks from 150 countries have joined the programme since its launch in 2005.
IFC’s resident representative in Myanmar, Vikram Kumar, said the facility marks the beginning of IFC’s support for local banks with capital and advisory services. He said it would help develop Myanmar’s financial sector and ultimately improve access to finance for small- and medium-sized enterprises, which are key drivers for economic growth and employment in the country.
“By boosting MOB’s capacity to deliver trade-finance solutions, IFC is helping improve trade flows that are vital to enterprise growth as the economy opens up,” said Kumar.
IFC is supporting reforms and investments in the Southeast Asian country to strengthen the private sector and create jobs to reduce poverty and boost shared prosperity. As a member of the World Bank Group, IFC is the largest global development institution focused mainly on the private sector.
Source: ELEVEN Myanmar