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IFC, Citibank Provide $1.2 Billion to Support Trade in Emerging Markets

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IFC, a member of the World Bank Group, and Citi announced the signing of a $1.2 billion risk-sharing facility to help stimulate the growth of trade in emerging markets and to support economic development. This initiative will work in partnership with global and regional banks with the goal of expanding the availability of trade at a time of reported global scarcity.

The signing marks the extension of an existing facility under IFC’s Global Trade Liquidity Program, first launched by IFC and Citi in 2009.  Since its inception, these collaborative efforts have financed a total trade volume of US$29 billion, with around $4.5 billion in IDA countries (International Development Association, the World Bank Group fund for the world’s poorest countries), and $11.1billion in low income and lower middle-income countries.

This long-standing partnership has facilitated financing for 4,092 trade transactions through 163 banks in 46 emerging market countries, of which 25 are low and lower middle-income countries.

“Citi’s partnership with the IFC has been a tremendous success, helping to stimulate the recovery and growth of global trade in emerging markets,” said John Ahearn, Global Head of Trade, Citi Treasury and Trade Solutions. “We look forward to continuing our partnership with banks, corporations, and the public sector across emerging markets to continue to stimulate global trade.”

“As we operate in an environment challenged by de-risking and continued volatility, this partnership with Citi is an important way to support and expand trade flows involving the emerging markets,” said Paulo De Bolle, IFC Director of Financial Institutions Group. “Citi is a key IFC partner and we are excited to continue this partnership through the Global Trade Liquidity Program and look forward to other collaborative opportunities with Citi.”

The facility extension will expand the availability of trade credit for clients in emerging markets over a four-year span through a risk-sharing structure.

IFC and partners will contribute $600 million, and Citi will provide an additional $600 million. IFC announced an extension of the GTLP program in 2012 to continue promoting international trade growth in emerging markets, including many IDA countries.

Citi will use the funding to originate and fund trade finance transactions in Africa, Asia, Central and Eastern Europe, Latin America, and the Middle East, enabling its bank clients to extend financing to local importers and exporters. The funding is expected to support emerging market trade flows of more than $5billion through 2022.

Combining a strong track record, a broad array of capabilities, and most importantly, advisory experience gained from working closely with leading companies around the globe, Citi is one of the market leaders in supporting client needs. Through a legacy of over 15 years of Supply Chain Finance experience, Citi also supports over 2,300 buyers and 70,000 suppliers to extend the working capital cycle.

IFC’s Trade and Commodity Finance programs offer guarantees, risk-sharing facilities, loans and other structured products to support trade in emerging markets. Through these various products, IFC has supported more than 400 financial institutions and thousands of underlying companies in more than 90 countries across all regions of the globe. Trade finance is a priority for IFC because we have seen the high development impact it can have on developing countries.

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E-Financial

PenCom Says BVN, NIN Compulsory for Retirement Savings Accounts

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National Pension Commission (PenCom) has directed all Pension Fund Administrators (PFAs) to update the records of all retirement savings accounts (RSAs) to include Bank Verification Number (BVN) and National Identification Number (NIN).

 

This directive was contained in a notice by the PenCom directing PFAs to carry out a recapture exercise to link BVNs and NIN with RSAs.

 

The directive indicated that the new development is in line with the Federal Government mandate to improve the National Identity System in Nigeria.

 

“The federal government of Nigeria has made it mandatory that every Nigerian must have a National Identification Number (NIN). To enable the Pension Industry comply, the National Pension Commission has directed all Pension fund administrators to update the records of their clients,” the notice read.

 

Recently, PenCom introduced an Enhanced Contributor Registration System (ECRS) to replace Contributor Registration System (CRS) as part of efforts to sanitise the database of participants in the Contributory Pension Scheme (CPS).

 

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NSE Delists Skye Bank, Fortis Microfinance Bank

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Two companies formerly trading their shares on the floor of the Nigerian Stock Exchange (NSE) have finally been delisted from the platform.

 

The two affected firms are Skye Bank Plc and Fortis Microfinance Bank Plc, both operating in the financial services sector.

 

Both organisations were removed from the stock exchange due to the revocation of their operating licenses by their primary regulator, the Central Bank of Nigeria (CBN).

 

According to a circular signed by Ms Lilian Dako, on behalf of the Head, Listings Regulation Department at the NSE, the delisting of Skye Bank and Fortis Microfinance Bank from the daily official list of the exchange became effective on Wednesday, August 21, 2019 (today).

 

“Dealing members are hereby notified that pursuant to Clause 15 of the General Undertaking, Appendix III of the Rule Book of the Nigerian Stock Exchange, 2015 (Issuers’ Rules), the under listed companies were delisted from the daily official list of the Nigerian Stock Exchange (The Exchange) today, Wednesday, August 21, 2019.

 

“Skye Bank Plc and Fortis Microfinance Bank Plc.

 

“The delisting of the afore-listed companies was approved by the National Council of The Exchange on Thursday, May 30, 2019 in line with the exchange’s regulatory delisting process as a result of the revocation of their operating licenses by their primary regulator, the Central Bank of Nigeria,” the circular stated.

 

It would be recall that the CBN had in September 2018 revoked the operating licence of Skye Bank and established a bridge bank known as Polaris Bank.

 

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E-Financial

NDIC Signs MOU with Korea Deposit Insurance Corporation

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The Nigeria Deposit Insurance Corporation (NDIC) has signed a Memorandum of Understanding (MOU) with the Korea Deposit Insurance Corporation (KDIC) on a wide range of issues intended to facilitate the robust implementation of the Deposit Insurance System in their respective jurisdictions. Both institutions are key members of the International Association of Deposit Insurers (IADI).

The MOU was signed at an elaborate ceremony within the premises of the KDIC in Seoul, South Korea on the 7th of August, 2019.

Mr. WI Seongbak, Chairman and President signed on behalf of the KDIC while Umaru Ibrahim, the Managing Director/Chief Executive (MD/CE) of the NDIC signed on behalf of the Corporation.

The ceremony was witnessed by the Chairman of the Board of the NDIC Mrs. Josephine Ibironke Sokefun and some of her colleagues who were on a study tour to the KDIC.

Under the terms of the MOU, both parties noted the increasing globalization and complexity of large financial institutions and the unique challenges they portend for regulatory authorities and committed themselves to the promotion of communication, enhancement of existing levels of cooperation; provision of support, mutual understanding, and collaboration on areas related to the development of the deposit insurance systems in the two jurisdictions.

The MOU also provided for effective international working relationship between both agencies along with the enhancement of their roles in financial regulatory initiatives and policy deliberations.

There will also be periodic exchange of staff between both institutions and bilateral meetings on regular basis towards enhancing mutual understanding that promotes the development of the Deposit Insurance System (DIS) in both Nigeria and South Korea.

Reflecting on the visit, the NDIC MD/CE described the study tour and MOU signing as a deeply rewarding experiencing given the insight gained by both deposit insurers from the various technical sessions held during the visit.

After the signing of the MOU, the NDIC delegation led by the Board Chairman and MD/CEO, was hosted to knowledge and experience sharing sessions by their KDIC counterparts. The delegation interacted with faculty members of the KDIC Global Academy.

The NDIC team also visited the Financial Services Commission (FSC) where it was hosted by the 1st Deputy Governor and the Financial Supervisory Services (FSS) where a technical knowledge sharing session was also held with their Management team.

The delegation, was later hosted by the Nigerian Ambassador to the Republic of Korea, H.E. Amin Muhammad Dalhatu at the Nigerian Embassy building in Seoul.

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