“Today, given our activities, you can see the reality for yourself! The AfDB is indispensable on the continent,” the IFC East Africa and Southern Africa Director, Jean Philippe Prosper, said during a joint AfDB-IFC conference on trade finance held in Tunis, Tunisia on April 14, 2009.
Question: Discussions during the meeting also focused on issues relating to documentary credits and liquidity. Could you explain these two aspects to use within the framework of the trade finance facility?
Jean Philippe Prosper: Within the framework of the trade finance facility, there are two things to be retained regarding documentary credits and liquidity. The provision of guarantees for documentary credit and liquidity. Offering credit allows the banks to provide coverage for letters of credit to their clients. This facilitates trade. Let’s take examples from AfDB credits. For 90, 120 or 180 days, you could always provide guarantees, but when the due date comes, you should be able to pay. That’s where the liquidity problem comes in.
Question: What type of relationship is the IFC looking to establishing with the AfDB within the framework of the trade finance initiative?
Jean Philippe Prosper: IFC-AfDB relations are excellent. Under the leadership of the AfDB President, Donald Kaberuka, we have developed excellent relations. Our two institutions are working in the infrastructure sector to see how we can develop something for this sector. Today, given our activities, you can see the reality for yourself! The AfDB is indispensable on the continent. The AfDB is a development Bank par excellence and we are happy to work with the AfDB.
Question: What is IFC looking forward to regarding today’s conference in Tunis?
Jean-Philippe Prosper: Regarding this conference, we are simply looking forward to reaching our goal which is also what the AfDB is looking forward to. In fact, it is about the various international organizations coming up with a common action plan against the financial crisis and how to provide assistance through this initiative.