ITFC Launches Letter of Credit Confirmation Facility to Boost Trade in OIC Member Countries

The International Islamic Trade Finance Corporation (ITFC), member of the Islamic Development Bank (IsDB) Group, has launched a new Letter of Credit (LC) confirmation facility to expand its private sector interventions.

According to an ITFC statement issued on the 14th of December 2020, the newly developed LC confirmation facility is available for small and medium-sized enterprises (SMEs) in IsDB member countries, where exporters can use the facility to boost trade volumes in Organisation of Islamic Cooperation (OIC) countries.

The ITFC’s LC confirmation facility affords exporters a payment guarantee from a second or confirming bank, protecting them and customers against issuing bank and country risk, thus mitigating the increasing risk associated with the COVI...