IFC agrees guarantees for Russian bank

Russia’s VTB and the IFC have agreed a guarantee-granting framework under the IFC’s global trade finance programme (GTFP).

The agreement covers the regulation of bank guarantees by the IFC to VTB for sovereign and commercial risks on trade finance transactions initiated by issuing banks in developing countries.

This will allow easier access to trade finance for Russian corporate customers of VTB for transactions in emerging markets.

This agreement is the latest in a number of similar deals signed by the IFC since the GTFP’s inception in 2005, with a total of US$7.1bn worth of guarantees already made.