IFC, the private sector arm of the World Bank Group, has announced that Monex Financiera is the first financial institution in Mexico to join its Global Trade Finance Program as an issuing bank.
The IFC programme promotes trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. Through the programme, IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions within an extensive network of countries and banks, thus enhancing their trade finance coverage.
Atul Mehta, IFC’s director for Latin America and the Caribbean, says, “IFC’s programme will allow Monex Financiera to provide more efficient trade solutions for its clients, especially small and medium enterprises in Mexico.”
IFC’s programme will enable Monex to double its trade transactions – mostly import letters of credit – in less than a year. It will also help Monex provide a wider range of trade finance services to its clients, mainly in the middle-income market segment.
Jorge Garza Adame, Monex Financiera’s CEO notes: “We are delighted to be the first financial institution in Mexico to join IFC’s Global Trade Finance Program. Participating in the programme will help us build a strong relationship with IFC and provide our customers with better access to new markets in the region.”
IFC has issued US$166mn in guarantees for five countries in Latin America (Argentina, Bolivia, Brazil, the Dominican Republic, and Ecuador) since the Global Trade Finance Program was launched in the region in February 2006.
The highest volume corresponds to pre-export financing in Brazil, followed by a similar financing structure in Argentina. One-third of the guarantees issued supported small and mid-sized businesses and South-South trade flows (exports/imports between emerging countries).
The main industries covered through the program in Latin America are agribusiness, automotives, consumer goods, industrial goods, oil and gas, telecommunications, and textiles.