The Structured and Corporate Finance Department of the IDB announced today the closing of its first transactions in Jamaica with First Global Bank, Ltd. under the IDB’s Trade Finance Facilitation Program (TFFP).
Through the support of its Trade Finance Facilitation Program, the IDB is helping First Global Bank in expanding its trade finance activities by broadening the Jamaican bank's access to additional sources of trade financing with International Banks.
In the last 8 weeks, the IDB has issued two guarantees for the account of First Global Bank to support imports of consumer goods, and today is issuing its third partial credit guarantee to support a $1 million transaction to enable the import of yellow corn from the US to Jamaica, benefiting a local poultry producer. The IDB issued this guarantee in favor of Citibank N.A.
Launched and rolled-out in 2005, the TFFP is an effective tool for the IDB to support economic reactivation and growth through the expansion of financing available for international trade activities of Latin American and Caribbean (LAC) countries. The TFFP has in recent months shown to be evermore important for the LAC region, as credit continues to tighten for emerging markets due to increased uncertainty and volatility in the global financial markets.
The TFFP currently comprises a network of 196 Confirming Banks belonging to 69 different international banking groups in over 46 countries, and 34 Issuing Banks in 14 LAC countries with over US$657 million in approved credit lines. To date, the IDB has issued guarantees for over US$380 million in support of 490 individual international trade transactions totaling US$504 million
First Global Bank
First Global Bank is the only locally-owned commercial bank in Jamaica and a subsidiary of GraceKennedy, one of the largest conglomerates in Jamaica. In June 2008, First Global reported total assets of US$343 million and loan growth of 15.5% from year-end 2007. Through its Head Office and 4 branches, the bank provides a broad range of financial services and loans to individuals, as well as to small and medium-sized companies.
- Christina MacCulloch