City Bank has entered into an agreement with IFC to participate in the Global Trade Finance Programme (GTFP) as a confirming bank.
Under the deal, City Bank has become the first bank in Bangladesh to participate in the programme as a confirming bank, said a press release.
Under the programme, IFC offers full or partial guarantees to the confirming banks participating in the GTFP, effectively taking on their payment risks.
City Bank joined the GTFP programme in 2012 as an issuing bank. As a confirming bank under the programme, City Bank can receive risk coverage from IFC to confirm LCs issued by other banks.
This is a big boost to City Bank’s capabilities to facilitate import and export financing of goods and services of private sector. This is especially significant during the current Covid-19 pandemic period, where City Bank will be able to cater to a higher volume of trade transactions and the higher trade flow will abate the effects of the crisis.
Sheikh Mohammad Maroof, Additional Managing Director of City Bank, has expressed his delight adding that the arrangement with IFC is a testament to City Bank’s strength and capabilities. This arrangement will further strengthen City Bank’s ability in facilitating country’s trade business.
City Bank is one of the oldest and strongest banks in the country with a significant focus in trade. City Bank has tie ups with major global and regional banks for trade finance facilities.