The International Finance Corporation, a member of the World Bank Group, is providing a $25m loan to Nations Trust Bank to help businesses in Sri Lanka.
IFC said this in an official statement on Tuesday.
The financing package, which will be used by NTB to help small- and medium-sized enterprises and corporates, is part of IFC’s $8bn global COVID-19 fast-track financing facility, supporting companies to stay afloat during the ongoing public health crisis.
The investment is under the Working Capital Solutions programme of the COVID-19 response envelope, which provides $2bn globally to emerging-market banks, enabling them to keep operating and preserve jobs.
“IFC’s investment in Nations Trust Bank will help us better support the government’s efforts to strengthen the country’s position through increased exports and reduced reliance on imports. IFC’s funding will enable us to provide trade finance and working capital facilities to affected businesses—exporters, local industries, especially mid-market corporates and small- and medium-sized enterprises—in Sri Lanka, so protecting people’s jobs,” Director/ Chief Executive Officer of NTB, Priyantha Talwatte, commented.
The IFC Regional Industry Director, Financial Institutions Group for Asia and Pacific, Rosy Khanna, also remarked, “At a time when the global pandemic is taking a terrible toll around the globe, it is vital that Sri Lankan businesses, especially small- and medium-sized enterprises, have all the support they need to build back better.
“We know that small- and medium-sized enterprises are the key engines of growth in many countries, including Sri Lanka, and are especially vulnerable during crises. Keeping these businesses solvent is, therefore, essential to minimise the economic damage and save jobs so we hope this fresh investment will equip Sri Lankan businesses to navigate these difficult times and emerge stronger and more resilient to future shocks.”
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