IFC extends first ever Green GTFP Line to Global IME Bank in Nepal

Global IME Bank has got IFC’s Climate Smart Trade Finance Line facility. During an event held in Kathmandu on Wednesday, IFC, a member of the World Bank Group, signed an agreement to provide climate smart trade finance line facilities under the Green Global Trade Finance Program (GTFP).

This is the first IFC green trade finance line globally.

Ratnaraj Bajracharya, CEO, Global IME Bank, and Joon Yong Park, South Asia Regional Manager, IFC, signed the agreement at the event.

The Bank believes that this program will strengthen and enable bilateral correspondent banking relations, along with facilitating trade expansion in global trade finance, international financial relations and international market.

Speaking on the occasion, Chairman of Global IME Bank Chandra Prasad Dhakal said that the agreement would be a roadmap for climate smart trade financing in Nepal. He further thanked IFC in extending its trade facility to Global IME Bank first in the world.

The bank’s CEO Ratnaraj Bajracharya said that IFC’s GTFP line will help Global IME Bank to expand its relationship with more international banks with better potential. He said that this will help the bank to do more business for the customers in different geographies.

IFC’s resident representative for Nepal said the GTFP’s assistance would help bridge the gap between the bank’s credit demand and supply. He said the program focuses on mitigating the impact of climate change by reducing Nepal’s financial constraints, energy saving technology, sustainability of operations and carbon emissions.

The bank said that in 2019, IFC invested US$20 million to help the bank invest in small and medium businesses. According to the bank, this project will help Global IME Bank to bridge the demand-supply gap in the bank’s growing business business.

According to the bank, the “green” component of the program is a strong foundation for the bank to conduct climate-friendly business operations, and it also addresses the impact of climate change. The program is expected to improve access to trade finance for Global IME Bank and its customers.

According to the bank, in 2019 IFC invested US$20 million for the bank to invest in small and medium businesses.