IADB adds six banks to its TFFP network

The Inter-American Development Bank (IADB) has added six financial institutions to its trade finance facilitation programme (TFFP).

The six banks are: the Agricultural Bank of China, the Export-Import Bank of China and the US’s PNC Bank which joined as confirming banks; Bolivia’s Banco BISA, which joined as an issuing bank; and Caja de Ahorros y Monte de Piedad de Madrid of Spain and BAC Florida Bank from the US, which joined the TFFP as B-lenders.

This follows six other Central and South American banks who joined the network just under a year ago, in April 2009.

Daniela Carrera Marquis, chief of financial markets division of the structured and corporate finance department at IADB, tells GTR: “We are constantly working to include new banks into the programme, both issuing and confirming banks. At the same time, with the incorporation of the lending product, banks are now also joining the programme to have access to trade financing in addition to risk mitigation. The incorporation of two Chinese banks as confirming banks also responds to the continuous efforts the IADB is carrying out to strengthen LAC-Asia trade and trade finance.”

“By joining, banks not only expand their access to trade finance, they also become part of a programme that allows them to expand their network of banking relations, allowing them to diversify their sources of funding and business partners to better support intra-regional and international trade flows and get to know regions that were previously outside their normal business.”

Through the TFFP, the IADB provides a range of trade finance solutions including loans and extended guarantees to cover letters of credit, bills of exchange, promissory notes, bid bonds, performance bonds, advance payment bonds and other instruments used in international trade transactions between 289 banks in 71 countries.