Axis Bank, IFC increasing trade finance for Indian SMEs

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IFC, a member of the World Bank Group, is partnering Axis Bank to support trade financing requirements of Indian exporters so that they can access markets globally and boost the country’s international trade.

IFC’s Global Trade Finance Program promotes trade among emerging markets, complementing the capacity of banks to ensure liquidity to export-oriented small and medium enterprises.

Axis Bank said IFC's trade finance facility will support its ability to help small businesses tap growth opportunities. The wider access to IFC’s global network of partner banks will allow Axis Bank to facilitate trading transactions of itscustomers at low risk.

IFC’s Global Trade Finance Program was launched in 2005 to increase the share of developing countries in global trade. Under the program, IFC has provided US$23 billion in credit guarantees worldwide for over 26,000 trade transactions.

The program brings together over 500 banks in 150 countries, linking large banks in developed markets with smaller ones in fragile and conflicted-affected states and the poorest regions of middle-income countries.

A recent IFC study on Indian micro, small and medium enterprises, found that banks are currently meeting only one-fourth of the financing demand from small businesses. Access to trade finance is a critical part of their need.