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The Inter-American Development Bank (IADB) has approved a partial credit guarantee to ABN Amro Uruguay for up to US$22.5mn for a trade finance facility to help Uruguayan exporters.

The total ABN Amro Sucursal Montevideo export finance portfolio to be covered by the guarantee will be of up to US$50mn in export sub loans.

Exporters Insurance Company will co-guarantee along with the IADB as part of the facility. Exporters Insurance Company is a Bermuda-domiciled private sector insurance company that focuses on covering trade credit and political risk in both developed and emerging market countries. It has a rating of “A “from FitchRatings and “A- ” from AM Best.

ABN Amro will use the facility to extend pre and post-export financings to large, medium and small-scale Uruguayan exporters, which financings shall not exceed one year.

The facility is expected to attract new export finance opportunities not only for local exporters, but also for international credit enhancement providers to enter the Uruguayan market.

The programme reflects the IADB strategies for Uruguay of supporting the recovery of international and regional competitiveness as a medium-term challenge to expand exports and to promote productive investment, economic growth and job creation. The main objective is to achieve sustained export-led growth within a framework of macroeconomic stability.

The facility introduces a new credit enhancement product for trade finance in Latin America designed to increase trade finance lending.