City Bank avails IFC risk coverage for LCs
City Bank has recently signed an agreement with International Finance Corporation (IFC) to participate in a Global Trade Finance Program (GTFP) as a confirming bank.
As a confirming bank, City Bank can receive risk coverage from the IFC to confirm letters of credit issued by other banks. This will enable it to cater to a higher volume of trade transactions amidst the pandemic, which will counter effects of the crisis, says a press release.
Sheikh Mohammad Maroof, additional managing director of City Bank, and Rosy Khanna, IFC regional industry director, Financial Institutions Group – Asia and Pacific, signed the agreement.
"This arrangement will further strengthen City Bank's ability in facilitating the country's trade business," said Maroof.
"Through the GTFP bank network, the City Bank can easily establish working partnerships with a vast number of major international banks and help businesses broaden access to finance, while reducing cash collateral requirements," said Khanna.
"Bangladeshi businesses whose cash flows have been heavily impacted by Covid-19 will also be able to benefit from a continuous flow of trade credit into the market. This will help in increasing trade, creating jobs, and reducing poverty," she added.
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