IFC, a member of the World Bank Group, is providing a $30 million (€23m) loan to Malta-based Fimbank to support cross-border trade in the Middle East and Africa.

The loan will help Fimbank offer trade financing to companies that import and export food, consumer goods, and machinery. The loan is designed to boost trade between Europe, the Middle East, and Africa, supporting economic development.

“The support of partners such as IFC signals an important vote of confidence in the Fimbank Group and its activities,” said Fimbank president Margrith Lütschg-Emmenegger. “We will continue to contribute to generate trade by increasing trade finance opportunities which increases development within these emerging economies.”

Launched in 2009, the Global Trade Liquidity Programme has helped support about $20 billion (€15bn) in trade volume by channelling capital from more than 600 banks and development finance institutions at a time of global scarcity in trade finance.

“Expanding trade finance is a key element of IFC’s strategy in the region,” said Aftab Ahmed, IFC financial markets director for Europe, the Middle East, and North Africa.

“With easy and affordable access to trade finance, local entrepreneurs can reach new markets, grow their businesses, and hire more employees.”

IFC has been a shareholder in Fimbank since 2005 and is also a partner in Fimbank’s factoring joint ventures across the world in Russia, Egypt, and Brazil. The loan is part of IFC’s efforts to support trade finance in the Middle East and Africa, which helps promote private sector development in those regions.