BBAC and IFC, a member of the World Bank Group, signed a trade finance agreement to help Lebanon’s private sector access global import and export markets and spur trade.

Through this agreement, BBAC and IFC will help clients access new markets and expand their existing trade channels. The initiative is part of IFC’s 5 billion USD Global Trade Finance Program, which extends and complements the capacity of banks to deliver trade financing. The program provides risk mitigation in new or challenging markets where trade lines are constrained. It also offers confirming banks partial or full guarantees covering payment risk for trade-related transactions in emerging markets.

“No doubt this agreement with IFC will reinforce confidence between our bank and foreign financial institutions, and will help us access markets that were previously beyond our reach, especially in the emerging economies where this facility is most needed,” said Ghassan Assaf, Chairman and General Manager of BBAC. “The IFC facility will therefore be a catalyst in promoting business in new markets, creating new business opportunities and generating growth for the economy.”

BBAC is the sixth bank in Lebanon to join IFC’s Global Trade Finance Program. Since the program’s inception in Lebanon in 2006, IFC has provided trade finance guarantees worth almost 1 billion USD to improve the country’s trade performance.

"Trade is a key driver of global integration and domestic growth,” said James Gohary, IFC Regional Manager of Financial Markets and Private Equity Funds in the Middle East and North Africa. “For a vibrant private sector, the Middle East and North Africa region needs to be connected to global markets. This agreement will help Lebanese companies enter new markets, opening opportunities for business growth and spurring job creation.”

IFC strategy in Lebanon focuses on supporting the continued recovery of the country’s private sector. IFC investment and advisory activities in Lebanon focus on trade financing, facilitating access to finance to small businesses, and women empowerment.