Banco Latinoamericano de Exportaciones (Bladex), the supranational bank specialising in trade finance across Latin America, is to work with the Malta-based FIMBank to provide factoring services to companies, banks and other financial institutions across Latin America.

Both parties have signed a memorandum of understanding to set up a joint venture factoring company that will assist companies in Latin America turn their discounted receivables into improved cash flow.

Jaime Rivera, chief executive officer of Bladex, remarks: “This agreement with a world-class partner in FIMBank is further evidence of Bladex’s evolving trade finance franchise.  With FIMBank’s expertise in factoring, coupled with Bladex’s knowledge of Latin America and distribution capabilities, this joint venture will allow Bladex to offer a greater range of trade finance-related products and further diversify its revenue streams.”

Margrith Lutschg-Emmenegger, president of FIMBank adds: “We are extremely honoured to partner with Bladex to launch the factoring product to Latin American countries under the most professional standards. Factoring is the fastest growing trade finance product, outperforming all other instruments in international as well as domestic trade, especially with regards to small and medium-sized enterprises (SMEs), a very important sector that supports and benefits the global economy.”

FIMBank Malta is part of the FIMBank group, which comprises of London Forfaiting Company and FIM Business Solutions. The bank’s main activity is providing short-term international trade finance to corporate traders, as well as acting as an intermediary to other financial institution for international settlements, forfaiting and loan syndications.