Bank Asia, IFC sign $70m loan facilities agreement

International Finance Corporation (IFC) has accorded Bank Asia $70 million short-term loan and guarantee facilities aiming to facilitate access of the bank's exporters and importers to reliable and reasonable terms and conditions for trade finance and provide liquidity and stability to trade finance system.
An agreement in this effect was signed between Bank Asia and IFC, a private sector arm of the World Bank Group, at a function held at the Corporate Office of the Bank at Purana Paltan in the city Tuesday, according to a statement.
Under the agreement, Bank Asia will be enjoying short-term loan facility $30 million from IFC as Working Capital Systemic Solution and $40 million guarantee facility from IFC's Global Trade Finance Programme, which will ultimately contribute to promote trade in emerging markets.
Besides, this support will enable Bank Asia to increase volume and value of trade transactions with enhanced tenors and access to competitive pricing terms. Bank Asia will be able to extend USD-based short-term funding to eligible companies and strengthening its trade services, allowing export-oriented business enterprises to have continued access to trade finance.
In addition, this loan and trade guarantee facilities will pay for critical value-chain imports, promoting Bangladesh's global trade as IFC provides partial or full guarantees against underlying trade instruments and covers the payment risk of participating issuing banks.
President & Managing Director of Bank Asia Mr. Md. Mehmood Husain and Ms. Inessa Tolokonnikova, Manager, Financial Institutions Group, IFC, South Asia inked the agreement on behalf of respective sides.
Additional Managing Director of Bank Asia Mr. Aminul Islam, Deputy Managing Directors Ms. Humaira Azam and Mr. Md. Arfan Ali, Senior Vice President & Head of International Division Mr. Zia Arfin, and Senior Country Officer of IFC, Dhaka Mohammad Rehan Rashid and Principal Investment Officer of IFC, Middle East and North Africa Ketaki S. Bhagwati were, among others, present.