International Finance Corporation (IFC) has signed a 2 million dollars facility with Liberian Bank for Development and Investment (LBDI) to help it expand its capacity to lend to importers and exporters.

According to an IFC statement on Monday, currently import trade to Liberia is conducted on an advance cash payment system since banks in Liberia do not have confirmed letters of credit overseas, due to the perceived risk following the civil conflict.

Big and small businesses have had little or no access to credit facility from banks in Monrovia.

Development banking has been virtually non-existent in Liberia due to years of civil war that ended in 2003.

With the 2 million dollars boost to LBDI, Liberia's largest and oldest bank, the IFC said this "will allow Liberia to participate in the network of international confirming banks".

IFC, the private sector arm of the World Bank, is the largest multilateral source of financing for the private sector in emerging markets and it has re-engaged in Liberia working with the post-war government of President Ellen Johnson-Sirleaf.

Source: Xinhua