GUATEMALA CITY – Banco Internacional S.A. of Guatemala has joined the Inter-American Development Bank’s enhanced Trade Finance Facilitation Program (TFFP) as an issuing bank, the IDB announced.
Under the TFFP, the IDB provides loans and extends guarantees to cover letters of credit, bills of exchange, promissory notes, bid bonds, performance bonds, advance payment bonds and other instruments used in international trade transactions. The program can help participant banks increase their trade finance business, playing a counter-cyclical role during times of volatility.
Banco Internacional and the IDB on Monday signed an agreement that contemplates a line of credit of up to $5 million to support trade transactions with tenors of up to 1.5 years. “Being a member of the TFFP will enable us to further increase our trade finance business while contributing to Guatemala’s economic growth,” said Banco Internacional CEO Francisco Naranjo. By joining the TFFP, Banco Internacional will further expand its crucial role in supporting companies active in the external sector in Guatemala and other countries in Latin America and the Caribbean.
The TFFP currently comprises a network of 231 confirming banks from 87 different international banking groups in over 50 countries worldwide, and 67 issuing banks in 18 Latin American and Caribbean countries, with over $1.1 billion in approved credit lines.
“We are pleased to welcome Banco Internacional, a subsidiary of one of our known clients, Grupo Ignacio Fierro, to the TFFP and support its trade finance operations with 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 Internacional S.A.
Banco Internacional was founded in 1975 in Guatemala as part of Grupo Ignacio Fierro of Spain. The bank offers a wide array of products and services in the areas of corporate banking. The corporate segment includes mid-cap and large institutions, with an emphasis in trade finance, leveraging Grupo Ignacio Fierro’s widespread bank network and relationships with prime financial institutions. Banco Internacional is the 9th largest bank in Guatemala, with 47 branches throughout the country and total assets of around $470 million and an outstanding loan portfolio of around $275 million as of September 30, 2010.
Inter-American Development Bank
The Inter-American Development Bank (IDB) offers its financial products and resources to help Latin America and the Caribbean countries reduce poverty and inequality in a sustainable way. As the oldest and largest regional development bank and the main source of multilateral finance for the region, the IDB seeks to create cooperation opportunities among its 48 member countries.