The Inter-American Development Bank (IDB) announced today that Banco Agrícola of El Salvador joined the IDB’s Trade Finance Facilitation Program (TFFP). Under the TFFP, the IDB extends guarantees to cover letters of credit, promissory notes, bid bonds, performance bonds, advance payment bonds and other instruments used in international trade transactions.
The TFFP can help Banco Agrícola to further increase its trade finance business and to take advantage of the TFFP’s countercyclical effects during times of volatility in trade finance flows.
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 countries.
The TFFP currently comprises a network of 203 confirming banks belonging to 74 different international banking groups in over 55 countries, and 49 issuing banks in 15 Latin American and Caribbean countries with more than $868.5 million in approved credit lines. To date, the IDB has issued guarantees for more than $488 million in support of 619 individual international trade transactions totaling $636.4 million.
Banco Agrícola is the largest bank in El Salvador with a market share of 29 percent in terms of assets and 2,500 employees as of year-end 2008. Banco Agrícola is a universal bank that offers, together with its subsidiaries credit card issuer CREDIBAC and leasing provider Arrendadora Financiera Capital, a full range of banking products and services. Internationally, Banco Agrícola has a network of 25 agencies in the United States that handle remittances and a representative office in Guatemala. Banco Agrícola is rated BB+ (Stable) by FitchRatings. Bancolombia S.A., the largest banking institution in Colombia, through Bancolombia Panamá S.A., is the majority owner of Banco Agrícola.
- Christina MacCulloch