IFC increases trade finance guarantee for Russian bank

The IFC is to increase its trade finance guarantee facility for Credit Bank of Moscow. The facility can now be used to guarantee up to US$40mn to facilitate import-export transactions for the small and medium-sized clients of the Russian bank.

Under an agreement signed in February 17, 2006, Credit Bank of Moscow received a US$10mn uncommitted trade finance line from the IFC, which was increased to US$25mn in January 2007.

Credit Bank of Moscow was the first issuing bank in Russia to join IFC's global trade finance programme, which supports trade in emerging markets through providing guarantee coverage of bank risk in the markets. This allows banks to expand their trade finance transactions within an extensive network of countries and banks.