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Saturday, May 25, 2013

IFC to extend credit guarantees to YES Bank

Private sector lender YES Bank has ties up with the International Finance Corporation (IFC), a member of the World Bank Group, to boost international trade opportunities.

Through this programme, IFC will extend credit guarantees to YES Bank to cover its payment risks under trade instruments issued by the bank in favour of participating correspondent banks.

Moreover with a wider access to a global network, the programme will enable YES Bank to facilitate transactions in challenging markets, promoting competitive financing and building correspondent bank relationships with new institutions, the bank said in a statement.

Rana Kapoor, Managing Director and CEO, YES Bank, said: “Through this programme, we plan to further improve our credit availability and also take advantage of competitive pricing and longer tenor transactions from correspondent banks, on account of risk sharing with IFC. Moreover, we will be able to offer our esteemed clients a wider base of foreign currency trade finance products at competitive rates, which will facilitate further expansion of our trade business.”

Global trade finance program


Launched in September 2005, IFC’s Global Trade Finance Program offers correspondent banks partial or full guarantees covering payment risks on participating banks for trade related transactions.

These guarantees cover a variety of underlying trade instruments such as letters of credit, trade-related promissory notes, accepted drafts, bills of exchange, guarantees, bid and performance bonds and advance payment guarantees.

Global Trade Finance Program seeks to promote trade flows between emerging markets and increase the developing countries’ share of global trade. Under the programme, IFC has provided $23 billion in credit guarantees for more than 26,000 trade transactions bringing together over 500 banks in 150 countries.

beena.parmar@thehindu.co.in

Source: thehindubusinessline

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