Fijian importers and exporters will have greater access to finance under a partnership between the International Finance Corporation and HFC Bank and this is expected to boost trade and support economic growth and jobs in Fiji.
Under an agreement IFC, a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, will invest up to US$5 million in HFC Bank to support its growing trade finance operations.
IFC says the investment, in the form of a trade finance facility, will also address a trade finance gap that widened as a result of the COVID-19 pandemic.
They say as Fiji’s only locally owned bank, HFC Bank provides a crucial service to Fijian importers and exporters, and in particular micro, small and medium-sized enterprises.
HFC Bank CEO Rakesh Ram says being a Fijian bank, they are delighted and extremely proud to be able to collaborate with IFC on its global trade finance initiative.
He says HFC Bank believes in delivering best quality solutions and value propositions to its customers.
Ram says they have extended their capabilities to better serve all their customers on a global scale with over 300 financial relationships offered under this initiative.
He further says international banks had consistently de-risked Pacific financial institutions, which had become a major hurdle for local players like HFC Bank.
Ram says they are making every effort to address this both through international partners like IFC and at the government level.
He says they have made significant progress in this regard and this partnership with IFC is testimony to their efforts and evidence of their capability and capacity.
The CEO further says this connection with IFC will provide their clients with broad access to trade financing networks, additionally contributing towards a sustainable Fijian economy through its own bank.
He says HFC Bank is determined to expand its financial and global trade platform, as well as its resilience in international markets.
IFC Country Manager for Australia, New Zealand, Papua New Guinea, and the Pacific Islands, Judith Green says access to trade finance is crucial for businesses to compete in the global marketplace and they are delighted to be partnering with HFC Bank with this initiative.
She says by leveraging their expertise and resources, they are not only creating a better investment climate and strengthening the financial infrastructure in the country but also increasing access to finance for MSMEs which are critical for jobs and growth in Fiji.
MIGA works with IFC to facilitate access to trade finance by providing guarantee capacity for state-owned banks through a joint Trade Finance Guarantee Initiative.
MIGA Executive Vice President Hiroshi Matano says they are pleased to partner with IFC’s GTFP to support greater access to trade finance for HFC Bank as supporting small states is a key priority for MIGA, and they believe that this initiative will help HFC Bank to better support local importers and exporters.
