By IANS,
New Delhi : International Finance Corp (IFC), a member of the World Bank group, will provide trade financing of $51 million to Kotak Mahindra Bank as part of its effort to help small and medium enterprises hit by the global meltdown.
In a statement released Monday, IFC said the trade finance facility would provide Kotak Mahindra risk coverage.
“This is the first bank IFC has supported in trade finance in India under its Global Trade Finance Program,” it said in the statement.
“IFC’s support to Kotak Mahindra Bank reflects our commitment to help businesses in India and other emerging markets overcome the effects of the global economic crisis,” said IFC executive vice president and chief executive Lars Thunell.
“The trade facility will improve Kotak’s ability to provide short-term trade funding for smaller businesses, which is vital given their reduced access to foreign currency financing amid the ongoing global financial crisis.”
Added Dipak Gupta, Kotak Mahindra Bank Executive Director: “This will help us provide a wider base of short-term foreign-currency trade finance products.”