CHENGDU, China – The Inter-American Development Bank (IDB) announced today the incorporation of China Minscheng Banking Corporation (CMBC) as a Confirming Bank into the IDB Trade Finance Facilitation Program (TFFP). The signing took place during the China-LAC Business Summit, held in Chengdu, China, on October 21st and 22nd, 2010.
The Forum was organized by the Integration and Trade Sector (INT) and the Office of Outreach and Partnerships (ORP) of the Inter-American Development Bank (IDB) and the China Council for the Promotion of International Trade (CCPIT), in close collaboration with the People’s Bank of China and the Sichuan Provincial Government.
Under the TFFP, the IDB provides loans and guarantees to cover documentary and stand-by letters of credit, promissory notes and other instruments used in the financing of international trade transactions. By participating in the TFFP network, CMBC will be able to further expand its trade finance activities with Latin America and the Caribbean.
“The IDB has its Trade Facilitation Program as a tool to promote regional and global integration. It is an effective and rapid mechanism to enable banks worldwide to start and expand trade activities with Latin America and the Caribbean. CMBC is the fourth Chinese bank to join the program and we expect to see many other Chinese Banks joining this program in the near future,” said IDB President Luis Alberto Moreno.
Launched in 2005, the TFFP is an effective tool for the IDB to support economic growth through the expansion of international trade financing available to Latin American and Caribbean companies. The TFFP currently comprises a network of 231 Confirming Banks from 87 different international banking groups, and 67 Issuing Banks in 18 Latin American and Caribbean countries, with more than $1.16 billion in approved credit lines. To date, the IDB has provided loans and issued guarantees for over $750 million in support of about 1000 individual trade transactions of more than $1 billion.
China Minsheng Banking Corporation
Established in Beijing in 1996 and listed at Shanghai Stock Exchange in 2000, China Minsheng Banking Corp., Ltd. (“CMBC”) is the first national joint-stock commercial bank with its shares primarily held by private enterprises.
CMBC focuses and specializes upon a series of special business areas as shipping finance, overseas project finance, commodity trade finance, international factoring and structured trade finance etc. By providing five comprehensive trade finance solutions in the fields of account receivables, supply chain, guarantees, value-added business and structured finance, CMBC offers all-round non-stop trade finance products and services to its customers.
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. The IDB seeks to create cooperation opportunities with other countries. It is the first and largest regional development bank and the main source of multilateral finance for the region.