Under the new LC Confirmation Product, ITFC will be partnering with financial institutions to serve private secotor/Small and medium-sized enterprises (SME) clients trade finance needs
Jeddah, Kingdom of Saudi Arabia: The International Islamic Trade Finance Corporation, member of the Islamic Development Bank (IsDB) Group, launched its new standalone LC Confirmation instrument as part of its strategy to expand its private sector interventions.
ITFC’s newly developed LCs Confirmation product is open to SMEs in IsDB member countries wherein exporters can now rely on ITFC’s LCs Confirmation boosting trade volumes in OIC member countries.
Enhancing international trade is crucial for economic development and this role becomes even more critical as countries embark on the recovery phase from the pandemic. The LCs Confirmation product is aimed at managing the increasing risk associated with the pandemic while facilitating trade flow and ensuring the steady supply of essential goods.
Commenting on the launch of the new product, Eng. Hani Salem Sonbol, ITFC CEO, said: ‘ITFC is committed to supporting SMEs and private sector development in developing countries to drive global trade. With this LCs Confirmation instrument, the ITFC is demonstrating the important role that Islamic trade finance products and solutions have in levelling the playing field for developing markets that seek to participate in the global economy. This provides much-needed support for exporters, the issuing banks and as a consequence, serves to provide strategic trade finance support where and when it is needed most during the COVID-19 pandemic and beyond.’
This LCs Confirmation product is structured to allow exporters gain assurance from a multi-lateral financial institution to secure payment, thus mitigating the credit and country risks of the LCs Issuing Banks.
About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving socioeconomic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$51 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity building tools, which would enable them to successfully compete in the global market.