The Inter-American Development Bank signed today a loan agreement with Banco G&T Continental, S.A. (G&T) to make the first loan to a Guatemalan Bank under its enhanced Trade Finance Facilitation Program (TFFP).
The agreement contemplates an up to $70 million in “A” and “B” loans to G&T under the TFFP. Banco G&T Continental S.A. joined the IB’s Trade Finance Facilitation Program (TFFP) in 2008 and is one of the most active users since then. “For G&T this is an operation that strengthens our foreign trade operations and that supports Guatemala's economy because it increases the funding available for the industries of our country. This is of great importance in the actual international context where there is still some aversion to grant credit facilities, especially in Central American countries. ” said Flavio Montenegro, CEO of G&T Continental.
“In 2009, the TFFP has expanded its benefits to respond to the financial situation of the international markets and to support economic reactivation and growth through the expansion of financing available for international trade activities of Latin American and Caribbean countries.” said IDB Structured and Corporate Finance Department General Manager Hans Schulz.
The TFFP currently comprises a network of 222 confirming banks belonging to 87 different international banking groups in over 53 countries, and 59 issuing banks in 18 Latin American and Caribbean countries with over $993.5 million in approved credit lines. “We are pleased to make the first loan to a Guatemalan Bank and continue supporting G&T with its trade finance operations, while they will benefit from the expanded and new features that the program now offers” said Daniela Carrera Marquis, Chief of the Financial Markets Division at the IDB Structured and Corporate Finance Department.
Banco G&T Continental is one of Guatemala’s leading banks, with its main office in Guatemala City, 216 branches throughout the country, 20 more branches in the United States, 148 points of service and 1,422 subagents. It holds total assets of US$3.5 billion and an outstanding loan portfolio of US$1.6 billion. Banco G&T Continental is an active bank in trade finance; by being able to receive loans under the TFFP, it will be able to increase its international business operations.