CAIRO: Ahli United Bank (AUB) Egypt became the country’s first bank to join the International Finance Corporation’s (IFC) global trade finance program as an issuing bank, the corporation announced Saturday.
The global trade finance program promotes trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. Through the program, IFC – a member of the World Bank Group – provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks as well as enhance their trade finance coverage.
“Through this program, we will help enhance trade finance capacity in local banks. In most markets, this has greatest net effect on small and medium enterprises, which are the most reliant on the support of local banks, said Michael Essex, IFC director for the Middle East and North Africa.
“Foreign banks typically focus on larger transactions and top-tier commercial entities. Our program guarantees amounts as low as $10,000 to ensure the SME sector is well supported, he added.
The Bahraini-based AUB officially began last year its operations in Egypt. “Our association with the program will allow us to provide greater services to our corporate clients and support Egypt’s growing export industry, Adel El-Labban, the bank’s CEO and managing director, said in a press statement.
