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The Inter-American Development Bank (IADB) has announced that Banco Internacional del Peru (Interbank) is the first Peruvian bank to become an issuing and confirming bank in the IADB Private Sector Department Trade Finance Facilitation Program (TFFP).

 

Under the TFFP, the IADB extends guarantees to cover letters of credit, promissory notes, bid bonds, performance bonds, advance payment bonds and other instruments used in international trade transactions. With the help of TFFP, Interbank will be able to expand its trade finance activities, and to be increasingly active in intra-regional trade transactions.

 

Launched and rolled-out in 2005, the TFFP is an effective IADB tool for supporting economic growth through the expansion of financing available for international trade activities of Latin American and Caribbean countries.

 

The TFFP currently comprises a network of over 83 confirming banks belonging to 43 different international banking groups in over 28 countries, and 24 issuing banks in 13 Latin American countries with over US$460mn in approved credit lines.

 

To date, the IADB has issued guarantees for over US$100mn in support of 126 individual international trade transactions totalling US$137mn.

 

Interbank is the fourth largest commercial bank in Peru. As of December 2006, Interbank had total assets of US$2.3bn, 2,824 employees, and a network of 111 branches and 701 ATMs throughout the country. The bank is well positioned in retail and commercial banking, with a leading presence in consumer lending and a focus on mortgage lending, as well as significant activities in commercial banking.

 

“The bank is committed, among other things, to facilitate trade and infrastructure investment through short and medium-term financing,” says Kathleen Rubin, head of the international division of Interbank.

 

“The TFFP programme will enable Interbank to further strengthen its market presence among Peruvian exporters by accessing the TFFP network of confirming banks, and will contribute to increase the supply of medium-term import financing to Peruvian importers,” adds Rubin.