International Finance Corporation (IFC), a member of the World Bank Group, has announced that it will provide a $10 million trade finance facility to HFC Bank to support increased trade.

Under the Global Trade Finance Program (GTFP), the facility will allow HFC Bank to establish working partnerships with many international and regional banks in the programme, thus broaden access to finance in Ghana to help grow the economy.

Under the transaction, GTFP, which extends and complements the capacity of banks to deliver trade finance by providing risk mitigation in challenging markets, will guarantee the trade-related payment obligations of HFC Bank.

By tapping the risk mitigation provided by the GTFP, HFC Bank will be able to enhance its global reach and gain familiarity in new markets.

At the signing ceremony in Accra yesterday, Jean Philippe Prosper, IFC Vice Present for Sub-Saharan Africa and Latin America and the Caribbean said, “IFC is committed to providing competitive financial products, especially to intermediaries like HFC Bank that can reach smaller and medium-sized businesses.”

He added that “Ghana’s increasing trade requires banks that can expand services to a wider range of clients and play a bigger role in the country’s rapid economic development.”

On his part, Asare Akuffo, the Managing Director of HFC Bank said, “Our new partnership with IFC will allow HFC Bank to better meet the needs of our clients and support their trade activities.

“Access to finance supporting trade will help our clients expand their businesses.”

Mary-Jean Moyo, IFC Country Manager for Ghana, also indicated that IFC will continue to strengthen and support financial institutions which aim to invest in the SME sector.